75-7-1011 - Interest as general partner.
75-7-1011. Interest as general partner.
(1) Except as otherwise provided in Subsection (3) or unless personal liability is imposedin the contract, a trustee who holds an interest as a general partner in a general or limitedpartnership is not personally liable on a contract entered into by the partnership after the trust'sacquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statementpreviously filed pursuant to Title 48, Chapter 2a, Utah Revised Uniform Limited Partnership Act.
(2) Except as otherwise provided in Subsection (3), a trustee who holds an interest as ageneral partner is not personally liable for torts committed by the partnership or for obligationsarising from ownership or control of the interest unless the trustee is personally at fault.
(3) The immunity provided by this section does not apply if an interest in the partnershipis held by the trustee in a capacity other than that of trustee or is held by the trustee's spouse orone or more of the trustee's descendants, siblings, or parents, or the spouse of any of them.
(4) If the trustee of a revocable trust holds an interest as a general partner, the settlor ispersonally liable for contracts and other obligations of the partnership as if the settlor were ageneral partner.
Enacted by Chapter 89, 2004 General Session