87.400 - Rules for distribution.
87.400 Rules for distribution. In settling accounts between the partners after dissolution, the following rules must be observed, subject to any agreement to the contrary:
1. The assets of the partnership are:
(a) The partnership property; and
(b) The contributions of the partners specified in subsection 4.
2. The liabilities of the partnership rank in order of payment, as follows:
(a) Those owing to creditors other than partners.
(b) Those owing to partners other than for capital and profits.
(c) Those owing to partners in respect of capital.
(d) Those owing to partners in respect of profits.
3. The assets must be applied in order of their declaration in subsection 1 to the satisfaction of the liabilities.
4. Except as otherwise provided in subsection 2 of NRS 87.150:
(a) The partners shall contribute, as provided by subsection 1 of NRS 87.180, the amount necessary to satisfy the liabilities; and
(b) If any, but not all, of the partners are insolvent, or, not being subject to process, refuse to contribute, the other partners shall contribute their share of the liabilities, and, in the relative proportions in which they share the profits, the additional amount necessary to pay the liabilities.
5. An assignee for the benefit of creditors or any person appointed by the court may enforce the contributions specified in subsection 4.
6. Any partner or his or her legal representative may enforce the contributions specified in subsection 4, to the extent of the amount which the partner or legal representative has paid in excess of his or her share of the liability.
7. The individual property of a deceased partner is liable for the contributions specified in subsection 4.
8. When partnership property and the individual properties of the partners are in possession of a court for distribution, partnership creditors have priority on partnership property and separate creditors on individual property, saving the rights of lien or secured creditors as heretofore.
9. Where a partner has become bankrupt or a partner’s estate is insolvent, the claims against the partner’s separate property rank in the following order:
(a) Those owing to separate creditors.
(b) Those owing to partnership creditors.
(c) Those owing to partners by way of contribution.
[Part 39:74:1931; 1931 NCL § 5028.38]—(NRS A 1995, 1473)