New Mexico Statutes 54-2A-509. Liability for improper distributions
A. A general partner that consents to a distribution made in violation of Section 508 [54-2A-508 N.M. Stat. Ann.] of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership for the amount of the distribution that exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution, the general partner failed to comply with Section 408 [54- 2A-408 NMSA 1978] of the Uniform Revised Limited Partnership Act.
Terms Used In New Mexico Statutes 54-2A-509
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
B. A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of Section 508 of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership but only to the extent that the distribution received by the partner or transferee exceeded the amount that could have been properly paid pursuant to Section 508 of that act.
C. A general partner against which an action is commenced pursuant to Subsection A of this section may:
(1) implead in the action any other person that is liable pursuant to Subsection A of this section and compel contribution from the person; and
(2) implead in the action any person that received a distribution in violation of Subsection B of this section and compel contribution from the person in the amount the person received in violation of Subsection B of this section.
D. An action pursuant to this section is barred if it is not commenced within two years after the distribution.