Source: http://www.leg.state.vt.us/docs/1998/acts/act149.htm
Timestamp: 2017-12-17 09:45:31
Document Index: 711645002

Matched Legal Cases: ['§ 3203', '§ 3236', '§ 3244', '§ 3262', '§ 3271', '§ 3277', '§ 3141', '§ 3012', '§ 3402', '§ 3403', '§ 3404', '§ 3406', '§ 3407', '§ 3411', '§ 3412', '§ 3413', '§ 3414', '§ 3415', '§ 3416', '§ 3418', '§ 3419', '§ 3420', '§ 3421', '§ 3422', '§ 3423', '§ 3424', '§ 3425', '§ 3431', '§ 3432', '§ 3433', '§ 3434', '§ 3435', '§ 3441', '§ 3442', '§ 3443', '§ 3444', '§ 3451', '§ 3452', '§ 3453', '§ 3454', '§ 3455', '§ 3456', '§ 3457', '§ 3458', '§ 3461', '§ 3462', '§ 3463', '§ 3465', '§ 3471', '§ 3472', '§ 3473', '§ 3474', '§ 3481', '§ 3483', '§ 3484', '§ 3485', '§ 3486', '§ 3488', '§ 3491', '§ 3492', '§ 3493', '§ 3494', '§ 3501', '§ 3502', '§ 3503']

NO. 149. AN ACT RELATING TO PARTNERSHIPS AND LIMITED PARTNERSHIPS.
Sec. 1. 11 V.S.A. chapter 22 is added to read:
CHAPTER 22. PARTNERSHIPS
§ 3203. EFFECT OF PARTNERSHIP AGREEMENT; NONWAIVABLE
(a) Except as otherwise provided in subsection (b) of this section, relations among the partners and between the partners and the partnership are governed by the partnership agreement. Subsection (b) of this section shall be the exclusive list of rights, duties and provisions of this chapter which may not be varied by the partnership agreement. To the extent the partnership agreement does not otherwise provide, this chapter governsrelations among the partners and between the partners and the partnership.
(3) eliminate the duty of loyalty under section 3234(b) or 3253(b)(3) of this title, but:
(4) unreasonably reduce the duty of care under section 3234(c) or 3253(b)(3) of this title;
(10) restrict rights of third parties under this chapter unless such third parties haveagreed to be bound by such restrictions.
(b) If an obligation to pay interest arises under this chapter and the rate is not specified, the rate shall be determined pursuant to subsection 41a(a) of Title 9.
(f) The secretary of state shall collect a fee for filing or providing a certified copy of a statement as set forth in section 3310 of this title.
Subchapter 2. Nature of Partnership
(b) A limited liability partnership continues to be the same entity that existed before the filing of a statement of qualification under section 3291 of this title.
(2) The sharing of gross returns does not by itself establish a partnership, even if the persons sharing them have a joint or common right or interest in property from which thereturns are derived.
(c) Property is presumed to be partnership property if purchased with partnershipassets, even if not acquired in the name of the partnership or of one or more partners with an indication in the instrument transferring title to the property of the person's capacity as a partner or of the existence of a partnership.
Subchapter 3. Relations of Partners to Persons Dealing with Partnership
(2) Partnership property held in the name of one or more partners with an indication in the instrument transferring the property to them of their capacity as partners or of the existence of a partnership, but without an indication of the name of the partnership, may be transferred by an instrument of transfer executed by the persons in whose name theproperty is held.
(2) A grant of authority to transfer real property held in the name of the partnership contained in a certified copy of a filed statement of partnership authority recorded in the office for recording transfers of that real property is conclusive in favor of a person who gives value without knowledge to the contrary, so long as and to the extent that a certified copy of a filed statement containing a limitation on that authority is not then of record in the office for recording transfers of that real property. The recording in the office forrecording transfers of that real property of a certified copy of a filed cancellation of a limitation on authority revives the previous grant of authority.
A partner or other person named as a partner in a filed statement of partnership authority or in a list maintained by an agent pursuant to subsection 3223(b) of this title may file a statement of denial stating the name of the partnership and the fact that is being denied, which may include denial of a person's authority or status as a partner. A statement of denial is a limitation on authority as provided in subsections 3223(d) and (e) of this section.
(c) An obligation of a partnership incurred while the partnership is a limited liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of the partnership. A partner is not personally liable, directly or indirectly, by way of contribution or otherwise, for such an obligation solely by reason of being or so acting as a partner. This subsection applies notwithstanding anything inconsistent in the partnership agreement that existed immediately before the vote required to become a limited liability partnership under subsection 3291(b) of this title.
(4) a court grants permission to the judgment creditor to levy execution against theassets of a partner based on a finding that partnership assets subject to execution are clearly insufficient to satisfy the judgment, that exhaustion of partnership assets is excessively burdensome, or that the grant of permission is an appropriate exercise of the court's equitable powers; or
(e) This section applies to any partnership liability or obligation resulting from a representation by a partner or purported partner under section 3228 of this title.
Subchapter 4. Relations of Partners to Each Other and to Partnership
(f) Each partner has equal rights in the management and conduct of the partnershipbusiness.
(k) This section does not affect the obligations of a partnership to other persons under section 3221 of this title.
(c) Each partner and the partnership shall furnish to a partner, and to the legal representative of a deceased partner or partner under legal disability, with or without demand, any information concerning the partnership's business and affairs as is just and reasonable.
(B) the partner's right on dissociation to have the partner's interest in the partnership purchased pursuant to section 3261 of this title or enforce any other right under subchapter 6 or 7 of this title; or
§ 3236. CONTINUATION OF PARTNERSHIP BEYOND DEFINITE TERM OR
PARTICULAR UNDERTAKING
Subchapter 5. Transferees and Creditors of Partner
(e) A partnership need not give effect to a transferee's rights under this section until ithas notice of the transfer.
§ 3244. PARTNER'S TRANSFERABLE INTEREST SUBJECT TO CHARGING
(e) This section provides the exclusive remedy, except as provided in chapter 57 of Title 9, by which a judgment creditor of a partner or partner's transferee may satisfy a judgment out of the judgment debtor's transferable interest in the partnership.
Subchapter 6. Partner's Dissociation
A partner is dissociated from a partnership upon the occurrence of any of the followingevents:
(3) the partner's duty of loyalty under subdivisions 3234(b)(1) and (2) of this title and duty of care under subsection 3234(c) of this title continue only with regard to matters arising and events occurring before the partner's dissociation, unless the partner participates in winding up the partnership's business pursuant to section 3273 of this title.
Subchapter 7. Partner's Dissociation When Business Not Wound Up
(f) If a deferred payment is authorized under subsection (h) of this section, the partnership may tender a written offer to pay the amount it estimates to be the buyout price and accrued interest, reduced by any offsets under subsection (c) of this section, stating the time of payment, the amount and type of security for payment, and the otherterms and conditions of the obligation.
(i) A dissociated partner may maintain an action against the partnership, pursuant to subdivision 3235(b)(2)(B) of this title, to determine the buyout price of that partner's interest, any offsets under subsection (c) of this section, or other terms of the obligation to purchase. The action must be commenced within 120 days after the partnership has tendered payment or an offer to pay or within one year after written demand for payment if no payment or offer to pay is tendered. The court shall determine the buyout price of the dissociated partner's interest, any offset due under subsection (c) of this section, and accrued interest, and enter judgment for any additional payment or refund. If deferred payment is authorized under subsection (h) of this section, the court shall also determine the security for payment and other terms of the obligation to purchase. The court may assess reasonable attorney's fees and the fees and expenses of appraisers or other experts for a party to the action, in amounts the court finds equitable, against a party that the court finds acted arbitrarily, vexatiously, or not in good faith. The finding may be basedon the partnership's failure to tender payment or an offer to pay or to comply with subsection (g) of this section.
§ 3262. DISSOCIATED PARTNER'S POWER TO BIND AND LIABILITY TO
(3) is not deemed to have had knowledge under subsection 3223(e) of this title, or notice under section 3264(c) of this title.
(3) is not deemed to have had knowledge under subsection 3223(e) of this title ornotice under section 3264(c) of this title.
(c) For the purposes of subdivisions 3262(a)(3) and 3263(b)(3) of this title, a person not a partner is deemed to have notice of the dissociation 90 days after the statement of dissociation is filed.
Subchapter 8. Winding Up Partnership Business
§ 3271. EVENTS CAUSING DISSOLUTION AND WINDING UP OF
(A) the expiration of 90 days after a partner's dissociation by death or otherwiseunder subdivisions 3251(6) through (10) of this title or wrongful dissociation under subsection 3252(b) of this title, unless before that time a majority in interest of the remaining partners, including partners who have rightfully dissociated pursuant to subdivision 3252(b)(2)(A) of this title, agree to continue the partnership;
(a) Subject to subsection (b) of this section, a partnership continues after dissolutiononly for the purpose of winding up its business. The partnership is terminated when the winding up of its business is completed.
(2) the rights of a third party accruing under subdivision 3274(1) of this title or arising out of conduct in reliance on the dissolution before the third party knew or received a notification of the waiver may not be adversely affected.
(c) A person winding up a partnership's business may preserve the partnership business or property as a going concern for a reasonable time, prosecute and defend actions and proceedings, whether civil, criminal, or administrative, settle and close the partnership's business, dispose of and transfer the partnership's property, discharge the partnership's liabilities, distribute the assets of the partnership pursuant to section 3277 of this title, settle disputes by mediation or arbitration, and perform other necessary acts.
(2) would have bound the partnership under section 3221 of this title before dissolution, if the other party to the transaction did not have notice of the dissolution.
(d) After filing and, if appropriate, recording a statement of dissolution, a dissolved partnership may file and, if appropriate, record a statement of partnership authority which will operate with respect to a person not a partner as provided in subsections 3223(d) and (e) of this title in any transaction, whether or not the transaction is appropriate for winding up the partnership business.
(b) A partner who, with knowledge of the dissolution, incurs a partnership liability under subdivision 3274(2) of this title by an act that is not appropriate for winding up the partnership business is liable to the partnership for any damage caused to the partnership arising from the liability.
§ 3277. SETTLEMENT OF ACCOUNTS AND CONTRIBUTIONS AMONG
(a) In winding up a partnership's business, the assets of the partnership, including thecontributions of the partners required by this section, must be applied to discharge its obligations to creditors, including, to the extent permitted by law, partners who are creditors. Any surplus must be applied to pay in cash the net amount distributable to partners in accordance with their right to distributions under subsection (b) of this section.
Subchapter 9. Conversions and Mergers
(e) A general partner who becomes a limited partner as a result of the conversion remains liable as a general partner for an obligation incurred by the partnership before the conversion takes effect. If the other party to a transaction with the limited partnership reasonably believes when entering the transaction that the limited partner is a generalpartner, the limited partner is liable for an obligation incurred by the limited partnership within 90 days after the conversion takes effect. The limited partner's liability for all other obligations of the limited partnership incurred after the conversion takes effect is that of a limited partner as provided in the Uniform Limited Partnership Act.
(e) A limited partner who becomes a general partner as a result of the conversion remains liable only as a limited partner for an obligation incurred by the limited partnership before the conversion takes effect. Except as otherwise provided in section 3226 of this title, the partner is liable as a general partner for an obligation of the partnership incurred after the conversion takes effect.
(d) If the obligations incurred before the merger by a party to the merger are not satisfied out of the property of the surviving partnership or limited partnership, the generalpartners of that party immediately before the effective date of the merger shall contribute the amount necessary to satisfy that party's obligations to the surviving entity, in the manner provided in section 3277 of this title, or in the Uniform Limited Partnership Act of the jurisdiction in which the party was formed, as the case may be, as if the merged party were dissolved.
(e) A partner of a party to a merger who does not become a partner of the surviving partnership or limited partnership is dissociated from the entity, of which that partner was a partner, as of the date the merger takes effect. The surviving entity shall cause the partner's interest in the entity to be purchased under section 3261 of this title, or another statute specifically applicable to that partner's interest with respect to a merger. The surviving entity is bound under section 3262 of this title by an act of a general partner dissociated under this subsection, and the partner is liable under section 3263 of this title for transactions entered into by the surviving entity after the merger takes effect.
(d) For the purposes of section 3222 of this title, real property of the survivingpartnership or limited partnership which before the merger was held in the name of another party to the merger is property held in the name of the surviving entity upon recording a certified copy of the statement of merger in the office for recording transfers of that real property.
(e) A filed and, if appropriate, recorded statement of merger, executed and declared to be accurate pursuant to subsection 3205(c) of this title, stating the name of a partnership or limited partnership that is a party to the merger in whose name property was held before the merger and the name of the surviving entity, but not containing all of the other information required by subsection (b) of this section, operates with respect to the partnerships or limited partnerships named to the extent provided in subsections (c) and (d) of this section.
This subchapter is not exclusive. Partnerships or limited partnerships may be converted or merged in any other manner provided by law.
Subchapter 10. Limited Liability Partnership
(A) banks, savings and loan associations and credit unions regulated under Title 8.
(B) insurance companies regulated under Title 8.
(b) The terms and conditions on which a partnership becomes a limited liability partnership must be approved by the vote necessary to amend the partnership agreementexcept, in the case of a partnership agreement that expressly considers obligations to contribute to the partnership, the vote necessary to amend those provisions.
(a) The name of a limited liability partnership must end with "Registered Limited Liability Partnership", "Limited Liability Partnership", "R.L.L.P.", "L.L.P.", "RLLP", or"LLP".
(b) Except as authorized by subsections (c) and (d) of this section, a limited liability partnership's name, based upon the records of the secretary of state, shall be distinguishable from, and not the same as, deceptively similar to, or likely to be confused with or mistaken for any name granted, registered or reserved under this chapter, or the name of any other entity, whether domestic or foreign, that is granted, reserved or registered by or with the secretary of state.
(c) A limited liability partnership may apply to the secretary of state for authorization to use a name that is not distinguishable from or is the same as, deceptively similar to, or likely to be confused with or mistaken for one or more of the names described in subsection (b) of this section, as determined from review of the records of the secretary of state. The secretary of state shall authorize use of the name applied for if:
(1) the other entity consents to the use in writing and submits an undertaking in a form satisfactory to the secretary of state to change its name to a name that is distinguishable from, and not the same as, deceptively similar to, or likely to be confused with or mistaken for the name of the applying company; or
(d) A limited liability partnership may use the name (including the trade name) of another domestic or foreign limited liability partnership that is used in this state if the other partnership is organized or authorized to transact business in this state and the proposed user partnership:
(e) Notwithstanding any other provision of law, a limited liability partnership or foreign limited liability partnership that renders professional service may use as its name all or some of the names of individual present or former partners of the partnership or a predecessor partnership, as permitted by the applicable rules of ethics and by the applicable statutory or regulatory provisions governing the rendering of such professional service.
(3) if the partnership does not have an office in this state, the name and streetaddress of the partnership's designated agent for service of process.
(f) A reinstatement under subsection (e) of this section relates back to and takes effect as of the effective date of the revocation, and the partnership's status as a limited liability partnership continues as if the revocation had never occurred.
Subchapter 11. Foreign Limited Liability Partnership
(1) the name of the foreign limited liability partnership which satisfies the requirements of section 3292 of this title and the state or other jurisdiction under whose law it is formed and ends with "Registered Limited Liability Partnership", "Limited Liability Partnership", "R.L.L.P.", "L.L.P.", "RLLP", or "LLP". In the event that the name of the foreign limited liability partnership does not satisfy the requirements of section 3292 of this title, the foreign limited liability partnership shall use an available trade name to transact business in this state if it delivers to the secretary of state for filing a copy of the statement executed by at least two partners adopting the trade name;
(2) the street address of the partnership's principal office and, if different, the street address of an office of the partnership in this state, if any;
(3) if there is no office of the partnership in this state, the name and street address of the partnership's agent for service of process; and
(a) A foreign limited liability partnership transacting business in this state may notmaintain an action or proceeding in this state unless it has in effect a statement of foreign qualification.
The attorney general may maintain an action to restrain a foreign limited liability partnership from transacting business in this state in violation of this subchapter.
Subchapter 12. Miscellaneous Provisions
(1) Statement of authority $ 50.00
(2) Statement of denial 5.00
(3) Statement of dissociation 5.00
(4) Statement of dissolution 5.00
(5) Statement of merger 50.00
(6) Statement of qualification 75.00
(7) Statement of foreign qualification 100.00
(8) Amendment 25.00
(9) Cancellation 5.00
liability partnership 15.00
liability partnership 100.00
(12) Reinstatement 25.00
(13) Any other document permitted
or required to be filed by this chapter 5.00
(1) $10.00 each time process is served on the secretary under this chapter. The party to a proceeding causing service of process is entitled to recover this fee as costs if he or she prevails in the proceeding; and
(2) $1.00 per page for copying and $5.00 for the certificate certifying the copy of any filed document related to a partnership, limited liability partnership or a foreign limited liability partnership.
(a) Before January 1, 1998, this chapter governs only a partnership formed:
(1) after the effective date of this chapter, except a partnership that is continuing the business of a dissolved partnership under section 1333 of the Uniform Partnership Act, Title 11, chapter 9 of the Vermont Statutes Annotated; and
(b) On and after July 1, 1998, this chapter governs all partnerships.
(c) Before July 1, 1998, a partnership voluntarily may elect, in the manner provided in its partnership agreement or by law for amending the partnership agreement, to be governed by this chapter. The provisions of this chapter relating to the liability of the partnership's partners to third parties apply to limit those partners' liability to a third party who had done business with the partnership within one year before the partnership's election to be governed by this chapter, only if the third party knows or has received a notification of the partnership's election to be governed by this chapter.
The enactment of this chapter does not affect an action or proceeding commenced or right accrued before this chapter takes effect.
Sec. 2. REPEALS
Effective January 1, 1999, the following acts and parts of acts are repealed: theUniform Partnership Act, Title 11, chapter 9 of the Vermont Statutes Annotated. In addition, 11 V.S.A. § 3141 is repealed.
Sec. 3. 11 V.S.A. § 3012(c) is amended to read:
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, *[and subject to section 3141(f) of this title,]* a limited liability company or foreign limited liability company shall engage in rendering professional services only to the extent that, and subject to the conditions and limitations under which, a professional corporation may engage in rendering professional services under chapter 3 of Title 11. For purposes of applying the provisions, conditions and limitations of chapter 3 of Title 11, unless the licensing laws of this state expressly prohibit the provision of professional services by domestic and foreign limited liability companies:
(1) unless the context clearly requires otherwise, references to chapters 1 - 20 of Title 11A relating to business corporations shall be treated as references to this chapter, and references to a "corporation" shall be treated as references to a limited liability company or foreign limited liability company;
(2) the members shall be treated in the same manner as shareholders of a professional corporation;
(3) managers shall be treated in the same manner as directors of a professional corporation;
Sec. 4. 11 V.S.A. chapter 23 is added to read:
CHAPTER 23. LIMITED PARTNERSHIPS
(1) A "certificate of limited partnership" means the certificate referred to in section 3411 of this title, and the certificate as amended or restated.
(2) A "contribution" means any cash, property, services rendered, or a promissory note or other binding obligation to contribute cash or property or to perform services, which a partner contributes to a limited partnership in his or her capacity as a partner.
(3) An "event of withdrawal of a general partner" means an event that causes a person to cease to be a general partner as provided in section 3432 of this title.
(4) A "foreign limited partnership" means a partnership formed under laws other than the laws of this state and having as partners one or more general partners and one or more limited partners.
(11) "Person" means a natural person, partnership, limited partnership (domestic or foreign), trust, estate, association, corporation or limited liability company.
§ 3402. NAME
(1) shall contain the words "Limited Partnership," or the letters "L.P.";
(3) may not be the same as, or deceptively similar to, the name of any corporation,limited liability company, limited liability partnership or limited partnership organized under the laws of this state or licensed or registered as a foreign corporation, limited liability company, limited liability partnership or limited partnership in this state; and
(4) may not contain the following words: "corporation," "incorporated," "limited" by itself, "limited liability company," "limited company," or the abbreviations "corp.," "inc.," or "ltd."
§ 3403. RESERVATION OF NAME
(4) any person intending to organize a foreign limited partnership and intending to have it registered in this state and to adopt that name.
(b) The reservation shall be made by filing with the secretary of state an application, executed by the applicant, to reserve a specified name. If the secretary of state finds that the name is available for use by a domestic or foreign limited partnership, he or she shall reserve the name for the exclusive use of the applicant for a period of 120 days. The owner of a name reserved under this section may renew the reservation for two successive periods of 120 days each. The right to the exclusive use of a reserved name may be transferred to any other person by filing in the office of the secretary of state a notice of the transfer, executed by the applicant for whom the name was reserved and specifying the name and address of the transferee.
§ 3404. SPECIFIED OFFICE AND AGENT
(1) an office, which may but need not be a place of its business in this state, at which shall be kept the records required by section 3405 of this title to be maintained; and
(2) an agent for service of process on the limited partnership, which agent must bean individual resident of this state, a domestic corporation, partnership, limited liability company, or a foreign corporation, partnership, or limited liability company authorized to do business in this state.
(b) Records kept under this section are subject to inspection and copying at the reasonable request and at the expense of any partner during ordinary business hours.
§ 3406. NATURE OF BUSINESS
A limited partnership may carry on any business that a partnership without limited partners may carry on except a business in which a corporation formed under the general corporation law may not engage.
§ 3407. BUSINESS TRANSACTIONS OF PARTNER WITH PARTNERSHIP
Subchapter 2. Formation; Certificate of Limited Partnership
§ 3411. CERTIFICATE OF LIMITED PARTNERSHIP
(2) the address of the office and the name and address of the agent for service of process required to be maintained by section 3404 of this title;
(3) the name and the business address of each general partner;
(4) the name and place of residence of each limited partner and the amount of cash and a description of and the agreed value of other property contributed by each limited partner;
(5) the latest date upon which the limited partnership is to dissolve; and
(6) any other matters the general partners determine to include therein.
§ 3412. AMENDMENT TO CERTIFICATE
(2) the date of filing the original certificate; and
(b) Within 30 days after the happening of any of the following events, an amendment to a certificate of limited partnership reflecting the occurrence of the event or events shall be filed:
(3) the continuation of the business under section 3471 of this title after an event of withdrawal of a general partner.
(e) No person has any liability because an amendment to a certificate of limited partnership has not been filed to reflect the occurrence of any event referred to in subsection (b) of this section if the amendment is filed within the 30-day period specified in subsection (b).
§ 3413. CANCELLATION OF CERTIFICATE
(2) the date of filing of its original certificate of limited partnership;
§ 3414. EXECUTION OF CERTIFICATES
§ 3415. EXECUTION BY JUDICIAL ACT
If a person required by section 3414 of this title to execute any certificate fails or refuses to do so, any other person who is adversely affected by the failure or refusal, may petition the superior court for the county where the limited partnership has its principal place of business or, if it has no principal place of business in this state, then the county where the office required to be maintained by section 3404 of this title is located to direct the execution of the certificate. If the court finds that it is proper for the certificate to be executed and that any person so designated has failed or refused to execute the certificate, it shall order the secretary of state to record an appropriate certificate.
§ 3416. FILING IN OFFICE OF SECRETARY OF STATE
(a) Two signed copies of the certificate of limited partnership and of any certificates of amendment or cancellation (or of any judicial decree of amendment or cancellation) shall be delivered to the secretary of state. A person who executes a certificate as an agent or fiduciary need not exhibit evidence of his or her authority as a prerequisite to filing.
Unless the secretary of state finds that any certificate does not conform to law, upon receipt of all filing fees required by law he or she shall:
(1) endorse on each duplicate original the word "Filed" and the day, month, andyear of the filing thereof;
(b) Upon the filing of a certificate of amendment (or judicial decree of amendment) in the office of the secretary of state, the certificate of limited partnership shall be amended as set forth therein, and upon the effective date of a certificate of cancellation (or a judicial decree thereof), the certificate of limited partnership is canceled.
(2) any general partner who thereafter knows or should have known that any arrangement or other fact described in the certificate has changed, making the statement inaccurate in any respect within a sufficient time before the statement was relied upon reasonably to have enabled that general partner to cancel or amend the certificate, or to file a petition for its cancellation or amendment under section 3415 of this title.
§ 3418. SCOPE OF NOTICE
The fact that a certificate of limited partnership is on file in the office of the secretary of state is notice that the partnership is a limited partnership and the persons designated therein as general partners are general partners and the persons designated therein as limited partners, if any are so designated, are limited partners, but it is not notice of any other fact.
§ 3419. DELIVERY OF CERTIFICATES TO LIMITED PARTNERS
Upon the return by the secretary of state pursuant to section 3416 of this title of a certificate marked "Filed," the general partners shall promptly deliver or mail a copy of the certificate of limited partnership and each certificate of amendment or cancellation to eachlimited partner unless the partnership agreement provides otherwise.
§ 3420. FEES
(1) Certificate of Limited Partnership $50.00
(2) Registration of Foreign Limited
Partnership 50.00
(3) Amendment 25.00
(4) Cancellation 5.00
(5) Merger 50.00
(6) Any other document permitted
Subchapter 3. Limited Partners
§ 3421. ADMISSION OF LIMITED PARTNERS
(2) at any later time specified in the records of the limited partnership for becoming a limited partner.
(2) in the case of an assignee of a partnership interest of a partner who has the power, as provided in section 3464 of this title, to grant the assignee the right to become a limited partner, upon the exercise of that power and compliance with any conditions limiting the grant or exercise of the power.
§ 3422. VOTING
Subject to section 3423 of this title, the partnership agreement may grant to all or a specified group of the limited partners the right to vote (on a per capita or other basis) upon any matter.
§ 3423. LIABILITY TO THIRD PARTIES
(a) Except as provided in subsection (d) of this section, a limited partner is not liable for the obligations of a limited partnership unless he or she is also a general partner or, in addition to the exercise of his or her rights and powers as a limited partner, he or she participates in the control of the business. However, if the limited partner participates in the control of the business, he or she is liable only to persons who transact business with the limited partnership reasonably believing, based upon the limited partner's conduct, that the limited partner is a general partner.
(7) winding up the limited partnership pursuant to section 3473 of this title; or
(c) The enumeration in subsection (b) of this section does not mean that the possession or exercise of any other powers by a limited partner constitutes participation by him or her in the business of the limited partnership.
(d) A limited partner who knowingly permits his or her name to be used in the name of the limited partnership, except under circumstances permitted by subdivision 3402(2) of this title, is liable to creditors who extend credit to the limited partnership without actual knowledge that the limited partner is not a general partner.
§ 3424. PERSON ERRONEOUSLY BELIEVING HIMSELF OR HERSELF LIMITED
(a) Except as provided in subsection (b) of this section, a person who makes a contribution to a business enterprise and erroneously but in good faith believes that he or she has become a limited partner in the enterprise is not a general partner in the enterpriseand is not bound by its obligations by reason of making the contribution, receiving distributions from the enterprise, or exercising any rights of a limited partner, if, on ascertaining the mistake, he or she:
(b) A person who makes a contribution of the kind described in subsection (a) of this section is liable as a general partner to any third party who transacts business with the enterprise before the person withdraws and an appropriate certificate is filed to show withdrawal, or before an appropriate certificate is filed to show that he or she is not a general partner, but in either case only if the third party actually believed in good faith that the person was a general partner at the time of the transaction.
§ 3425. INFORMATION
(1) inspect and copy any of the partnership records required to be maintained by section 3405 of this title; and
(2) obtain from the general partners from time to time upon reasonable demand true and full information regarding the state of the business and financial condition of the limited partnership; promptly after becoming available, a copy of the limited partnership's federal, state, and local income tax returns for each year; and other information regarding the affairs of the limited partnership as is just and reasonable.
Subchapter 4. General Partners
§ 3431. ADMISSION OF ADDITIONAL GENERAL PARTNERS
After the filing of a limited partnership's original certificate of limited partnership, additional general partners may be admitted as provided in writing in the partnership agreement or, if the partnership agreement does not provide in writing for the admission of additional general partners, with the written consent of all partners.
§ 3432. EVENTS OF WITHDRAWAL
(1) the general partner withdraws from the limited partnership as provided in section 3452 of this title;
(2) the general partner ceases to be a member of the limited partnership as provided in section 3462 of this title;
(4) unless otherwise provided in writing in the partnership agreement, the general partner: makes an assignment for the benefit of creditors; files a voluntary petition in bankruptcy; is adjudicated a bankrupt or insolvent; files a petition or answer seeking for himself or herself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against him or her in any proceeding of this nature; or seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the general partner or of all or any substantial part of his or her properties;
(5) unless otherwise provided in writing in the partnership agreement, 120 days after the commencement of any proceeding against the general partner seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, the proceeding has not been dismissed, or if within 90 days after the appointment without his or her consent or acquiescence of a trustee, receiver, or liquidator of the general partner or of all or any substantial part of his*[ ]*or her properties, the appointment is not vacated or stayed or within 90 days after the expiration of any such stay, the appointment is not vacated;
(B) the entry of an order by a court of competent jurisdiction adjudicating him or her incompetent to manage his or her person or his or her estate;
§ 3433. GENERAL POWERS AND LIABILITIES
§ 3434. CONTRIBUTIONS BY GENERAL PARTNER
A general partner of a limited partnership may make contributions to the partnership and share in the profits and losses of, and in distributions from, the limited partnership as a general partner. A general partner also may make contributions to and share in profits, losses, and distributions as a limited partner. A person who is both a general partner and a limited partner has the rights and powers, and is subject to the restrictions and liabilities, of a general partner and, except as provided in the partnership agreement, also has the powers, and is subject to the restrictions, of a limited partner to the extent of his or her participation in the partnership as a limited partner.
§ 3435. VOTING
The partnership agreement may grant to all or certain identified general partners theright to vote (on a per capita or any other basis), separately or with all or any class of the limited partners, on any matter.
Subchapter 5. Finance
§ 3441. FORM OF CONTRIBUTION
§ 3442. LIABILITY FOR CONTRIBUTION
(b) Except as provided in the partnership agreement, a partner is obligated to the limited partnership to perform any enforceable promise to contribute cash or property or to perform services, even if he or she is unable to perform because of death, disability, or any other reason. If a partner does not make the required contribution of property or services, he or she is obligated at the option of the limited partnership to contribute cash equal to that portion of the value, as stated in the partnership records required to be kept pursuant to section 3405 of this title, of the stated contribution which has not been made.
(c) Unless otherwise provided in the partnership agreement, the obligation of a partner to make a contribution or return money or other property paid or distributed in violation of this chapter may be compromised only by consent of all partners. Notwithstanding the compromise, a creditor of a limited partnership who extends credit or otherwise acts in reliance on that obligation after the partner signs a writing which reflects the obligation and before the amendment or cancellation thereof to reflect the compromise may enforce the original obligation.
§ 3443. SHARING OF PROFITS AND LOSSES
The profits and losses of a limited partnership shall be allocated among the partners, and among classes of partners, in the manner provided in writing in the partnership agreement. If the partnership agreement does not so provide in writing, profits and losses shall be allocated on the basis of the value, as stated in the partnership records required to be kept pursuant to section 3405 of this title, of the contributions made by each partner to the extent they have been received by the partnership and have not been returned.
§ 3444. SHARING OF DISTRIBUTIONS
Distributions of cash or other assets of a limited partnership shall be allocated among the partners and among classes of partners in the manner provided in writing in the partnership agreement. If the partnership agreement does not so provide in writing, distributions shall be made on the basis of the value, as stated in the partnership records required to be kept pursuant to section 3405 of this title, of the contributions made by each partner to the extent they have been received by the partnership and have not been returned.
Subchapter 6. Distributions and Withdrawal
§ 3451. INTERIM DISTRIBUTIONS
Except as provided in this subchapter, a partner is entitled to receive distributions from a limited partnership before his or her withdrawal from the limited partnership and before the dissolution and winding up thereof to the extent and at the times or upon the happening of the events specified in the partnership agreement.
§ 3452. WITHDRAWAL OF GENERAL PARTNER
A general partner may withdraw from a limited partnership at any time by giving written notice to the other partners, but if the withdrawal violates the partnership agreement, the limited partnership may recover from the withdrawing general partner damages for breach of the partnership agreement and offset the damages against the amount otherwise distributable to him or her.
§ 3453. WITHDRAWAL OF LIMITED PARTNER
A limited partner may only withdraw from a limited partnership at the time or upon the happening of events specified in writing in the partnership agreement. If the agreement does not specify in writing the time or the events upon the happening of which a limited partner may withdraw or a definite time for the dissolution and winding up of the limited partnership, a limited partner may withdraw upon not less than six months' prior written notice to each general partner at his or her address on the books of the limited partnership at its office in this state.
§ 3454. DISTRIBUTION UPON WITHDRAWAL
Except as provided in this subchapter, upon withdrawal any withdrawing partner isentitled to receive any distribution to which he or she is entitled under the partnership agreement and, if not otherwise provided in the agreement, he or she is entitled to receive, within a reasonable time after withdrawal, the fair value of his or her interest in the limited partnership as of the date of withdrawal based upon what a willing buyer would pay a willing seller for the interest, with neither party being under any compulsion to buy or sell his or her right to share in distributions from the limited partnership.
§ 3455. DISTRIBUTION IN KIND
Except as provided in writing in the partnership agreement, a partner, regardless of the nature of his or her contribution, has no right to demand and receive any distribution from a limited partnership in any form other than cash. Except as provided in writing in the partnership agreement, a partner may not be compelled to accept a distribution of any asset in kind from a limited partnership to the extent that the percentage of the asset distributed to him or her exceeds a percentage of that asset which is equal to the percentage in which he or she shares in distributions from the limited partnership.
§ 3456. RIGHT TO DISTRIBUTION
At the time a partner becomes entitled to receive a distribution, he or she has the status of, and is entitled to all remedies available to, a creditor of the limited partnership with respect to the distribution.
§ 3457. LIMITATIONS ON DISTRIBUTION
§ 3458. LIABILITY UPON RETURN OF CONTRIBUTION
(a) If a partner has received the return of any part of his or her contribution without violation of the partnership agreement or this chapter, he or she 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 limited partnership's liabilities to creditors who extended credit to the limited partnership during the period the contribution was held by the partnership.
(b) If a partner has received the return of any part of his or her contribution in violation of the partnership agreement or this chapter, he or she is liable to the limited partnership for a period of six years thereafter for the amount of the contribution wrongfully returned.
(c) A partner receives a return of his or her contribution to the extent that a distribution to him or her reduces his or her share of the fair value of the net assets of the limited partnership below the value, as set forth in the partnership records required to be kept pursuant to section 3405 of this title, of his or her contribution which has not been distributed to him or her.
Subchapter 7. Assignment of Partnership Interests
§ 3461. NATURE OF PARTNERSHIP INTEREST
§ 3462. ASSIGNMENT OF PARTNERSHIP INTEREST
Except as provided in the partnership agreement, a partnership interest is assignable in whole or in part. An assignment of a partnership interest does not dissolve a limited partnership or entitle the assignee to become or to exercise any rights of a partner. An assignment entitles the assignee to receive, to the extent assigned, only the distribution to which the assignor would be entitled. Except as provided in the partnership agreement, a partner ceases to be a partner upon assignment of all his or her partnership interest.
§ 3463. RIGHTS OF CREDITOR
On application to a court of competent jurisdiction by any judgment creditor of a partner, the court may charge the partnership interest of the partner with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgmentcreditor has only the rights of an assignee of the partnership interest. This chapter does not deprive any partner of the benefit of any exemption laws applicable to his or her partnership interest.
(c) If an assignee of a partnership interest becomes a limited partner, the assignor is not released from his or her liability to the limited partnership under sections 3417 and 3442 of this title.
§ 3465. POWER OF ESTATE OF DECEASED OR INCOMPETENT PARTNER
If a partner who is an individual dies or a court of competent jurisdiction adjudges him or her to be incompetent to manage his or her person or his or her property, the partner's executor, administrator, guardian, conservator, or other legal representative may exercise all of the partner's rights for the purpose of settling his or her estate or administering his or her property, including any power the partner had to give an assignee the right to become a limited partner. If a partner is a corporation, trust, or other entity and is dissolved or terminated, the powers of that partner may be exercised by its legal representative or successor.
Subchapter 8. Dissolution
§ 3471. NONJUDICIAL DISSOLUTION
(4) an event of withdrawal of a general partner unless at the time there is at least one other general partner and the written provisions of the partnership agreement permit the business of the limited partnership to be carried on by the remaining general partner and that partner does so, but the limited partnership is not dissolved and is not required to be wound up by reason of any event of withdrawal if, within 90 days after the withdrawal, all partners agree in writing to continue the business of the limited partnership and to the appointment of one or more additional general partners if necessary or desired; or
(5) entry of a decree of judicial dissolution under section 3472 of this title.
§ 3472. JUDICIAL DISSOLUTION
On application by or for a partner the superior court may decree dissolution of a limited partnership whenever it is not reasonably practicable to carry on the business in conformity with the partnership agreement. Venue for such a proceeding lies in the county where the partnership's principal office is or was located.
§ 3473. WINDING UP
Except as provided in the partnership agreement, the general partners who have not wrongfully dissolved a limited partnership or, if none, the limited partners, may wind up the limited partnership's affairs; but the superior court may wind up the limited partnership's affairs upon application of any partner, his or her legal representative, or assignee. Venue for such a proceeding lies in the county where the partnership's principal office is or was located.
§ 3474. DISTRIBUTION OF ASSETS
(1) to creditors, including partners who are creditors, to the extent permitted bylaw, in satisfaction of liabilities of the limited partnership other than liabilities for distributions to partners under section 3451 or 3454 of this title;
(2) except as provided in the partnership agreement, to partners and former partners in satisfaction of liabilities for distributions under section 3451 or 3454 of this title; and
Subchapter 9. Foreign Limited Partnerships
§ 3481. LAW GOVERNING
Subject to the constitution of this state, the laws of the state under which a foreign limited partnership is organized govern its organization and internal affairs and the liability of its limited partners, and a foreign limited partnership may not be denied registration by reason of any difference between those laws and the laws of this state.
(7) the address of the office at which is kept a list of the names and addresses of the limited partners and their capital contributions, together with an undertaking by the foreign limited partnership to keep those records until the foreign limited partnership's registration in this state is canceled or withdrawn.
§ 3483. ISSUANCE OF REGISTRATION
(a) If the secretary of state finds that an application for registration conforms to law and all requisite fees have been paid, he or she shall:
(1) endorse on the application the word "Filed," and the month, day, and year of the filing thereof;
(2) file in his or her office a duplicate original of the application; and
(b) The certificate of registration, together with a duplicate original of the application, shall be returned to the person who filed the application or his or her representative.
§ 3484. NAME
A foreign limited partnership may register with the secretary of state under any name, whether or not it is the name under which it is registered in its state of organization, and it:
(2) may not contain the name of a limited partner unless it is also the name of a general partner or the corporate name of a corporate general partner, or the business of the limited partnership had been carried on under the name before the admission of that limited partner;
(3) may not be the same as, or deceptively similar to, the name of any corporation, limited liability company, limited liability partnership or limited partnership organized under the laws of the state or licensed or registered as a foreign corporation, limited liability company, limited liability partnership or limited partnership in this state; and
(4) may not contain the following words: "corporation," "incorporated," "limitedby itself," "limited liability company," "limited company," or the abbreviations "corp.," "inc.," or "ltd."
§ 3485. CHANGES AND AMENDMENTS
§ 3486. CANCELLATION OF REGISTRATION
A foreign limited partnership may cancel its registration by filing with the secretary of state a certificate of cancellation signed and sworn to by a general partner. A cancellation does not terminate the authority of the secretary of state to accept service of process on the foreign limited partnership with respect to claims for relief or causes of action arising out of the transaction of business in this state.
§ 3488. ACTION BY ATTORNEY GENERAL
The attorney general may bring an action to restrain a foreign limited partnership fromtransacting business in this state in violation of this subchapter.
Subchapter 10. Derivative Actions
§ 3491. RIGHT OF ACTION
§ 3492. PROPER PLAINTIFF
In a derivative action, the plaintiff must be a partner at the time of bringing the action and must have been a partner at the time of the transaction of which he or she complains or his or her status as a partner must have devolved upon him or her by operation of law or pursuant to the terms of the partnership agreement from a person who was a partner at the time of the transaction.
§ 3493. PLEADING
§ 3494. EXPENSES
If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise, or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including reasonable attorney's fees, and shall direct him or her to remit to the limited partnership the remainder of those proceeds received by him or her.
Subchapter 11. Miscellaneous
§ 3501. CONSTRUCTION AND APPLICATION
This chapter shall be so applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
§ 3502. RULES FOR CASES NOT PROVIDED FOR IN THIS CHAPTER
§ 3503. SAVINGS CLAUSE
The repeal of any statutory provision by this act does not impair, or otherwise affect, the organization or the continued existence of a limited partnership existing at the effective date of this act, nor does the repeal of any existing statutory provision by this act impair any contract or affect any right accrued before the effective date of this act.
Sections 1391-1420 of Title 11, relating to limited partnerships, are repealed upon the effective date of this act.
(a) This act shall take effect on January 1, 1999.
(b) Sections 3441, 3442 and 3458 of Title 11, relating to contributions, apply only to contributions and distributions made after the effective date of this act.
(c) Section 3464 of Title 11, relating to assignees, applies only to assignments made after the effective date of this act.
(d) Unless otherwise agreed by the partners, the applicable provisions of chapter 11 of Title 11 in effect immediately prior to the effective date of this act governing allocation of profits and losses (rather than the provisions of section 3443 of Title 11), distributions to a withdrawing partner (rather than the provisions of section 3454 of Title 11), and distributions of assets upon the winding up of a limited partnership (rather than the provisions of section 3474 of Title 11) shall govern limited partnerships formed before the effective date of this act.