Uniform Limited Partnership Act (1916) Section 19:

Assignment of Limited Partner's Interest, and Section 22: Rights of Creditors of Limited Partner .

Uniform Limited Partnership Act (1916) Section 19: Assignment of Limited Partner’s Interest, and Section 22: Rights of Creditors of Limited Partner.

Uniform Limited Partnership Act (1916)

Section 19: Assignment of Limited Partner’s Interest

(1) A limited partner’s interest is assignable.

(2) A substituted limited partner is a person admitted to all the rights of a limited partner who has died or has assigned his interest in a partnership.

(3) An assignee, who does not become a substituted limited partner, has no

right to require any information or account of the partnership transactions or

to inspect the partnership books; he is only entitled to receive the share of the profits or other compensation by way of income, or the return of his contribution, to which his assignor would otherwise be entitled.

(4) An assignee shall have the right to become a substituted limited partner if all the members (except the assignor) consent thereto or if the assignor, being thereunto empowered by the certificate, gives the assignee that right.

(5) An assignee becomes a substituted limited partner when the certificate is

appropriately amended in accordance with Section 25.

(6) The substituted limited partner has all the rights and powers and is

subject to all the restrictions and liabilities of his assignor, except those

liabilities of which he was ignorant at the time he became a limited partner and

which could not be ascertained from the certificate.

(7) The substitution of the assignee as a limited partner does not release

the assignor from liability to the partnership under Sections 6 and 17.

Uniform Limited Partnership Act (1916)

Section 22: Rights of Creditors of Limited Partner

(1) On due application to a court of competent jurisdiction by any judgment creditor of a limited partner, the court may charge the interest of the indebted limited partner with payment of the unsatisfied amount of the judgment debt; and may appoint a receiver, and make all other orders, directions, and inquiries which the circumstances of the case may require.

(2 )The interest may be redeemed with the separate property of any general partner, but may not be redeemed with partnership property.

(3) The remedies conferred by paragraph (I) shall not be deemed exclusive of others which may exist.

(4) Nothing in this act shall be held to deprive a limited partner of his

statutory exemption.

* The above material was authored by the National Conference of Commissioners on State Laws and is reprinted from Uniform Laws Annotated, WESTLAW, Copyright 1993 by West Publishing Company.

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Family Limited Partnerships

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