8558 - Liability upon return of contribution.

     § 8558.  Liability upon return of contribution.        (a)  General rule.--If a general partner has received the     return of any part of his contribution without violation of the     partnership agreement or this chapter, he is liable to the     limited partnership for a period of one year thereafter for the     amount of the returned contribution but only to the extent     necessary to discharge the liabilities of the limited     partnership to creditors who extended credit to the limited     partnership during the period the contribution was held by the     partnership.        (b)  Unlawful distributions.--If a partner has received the     return of any part of his contribution in violation of the     partnership agreement or this chapter, he is liable to the     limited partnership for a period of two years thereafter for the     amount of the contribution wrongfully returned.        (c)  Determination of return of contribution.--A partner     receives a return of his contribution to the extent that a     distribution to him reduces his share of the fair value of the     net assets of the limited partnership below the value (as stated     or determined in the manner provided in the partnership     agreement, if stated or provided for therein) of his     contribution (to the extent it has been received by the limited     partnership) that has not been distributed to him, and otherwise     to the extent of the fair value of the distribution.        (d)  Fair value of net assets.--For purposes of computing the     fair value of the net assets of the limited partnership under     subsection (c):            (1)  liabilities of the limited partnership to partners        on account of their partnership interests and liabilities as        to which recourse of creditors is limited to specified        property of the limited partnership shall not be considered;        and            (2)  the fair value of property that is subject to a        liability as to which recourse of creditors is so limited        shall be included in the partnership assets only to the        extent that the fair value of the property exceeds that        liability.     (Dec. 19, 1990, P.L.834, No.198, eff. imd.; June 22, 2001,     P.L.418, No.34, eff. 60 days)        2001 Amendment.  Act 34 amended subsec. (c) and added subsec.     (d).        1990 Amendment.  Act 198 amended subsec. (b).        Cross References.  Section 8558 is referred to in section     8502 of this title.