1. Liability of dissociated general partner. A person‘s dissociation as a general partner does not of itself discharge the person’s liability as a general partner for an obligation of the limited partnership incurred before dissociation. Except as otherwise provided in subsections 2 and 3, the person is not liable for a limited partnership’s obligation incurred after dissociation.

[PL 2005, c. 543, Pt. C, §2 (NEW).]

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Terms Used In Maine Revised Statutes Title 31 Sec. 1377

  • General partner: means :
A. See Maine Revised Statutes Title 31 Sec. 1302
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partner: means a limited partner or general partner. See Maine Revised Statutes Title 31 Sec. 1302
  • 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.
  • Person: means an individual; corporation; business trust; estate; trust; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency or instrumentality; public corporation; or any other legal or commercial entity. See Maine Revised Statutes Title 31 Sec. 1302
  • Person dissociated as a general partner: means a person dissociated as a general partner of a limited partnership. See Maine Revised Statutes Title 31 Sec. 1302
  • 2. Liability when dissociation resulted in dissolution. A person whose dissociation as a general partner resulted in a dissolution and winding up of the limited partnership’s activities is liable to the same extent as a general partner under section 1354 on an obligation incurred by the limited partnership under section 1394.

    [PL 2005, c. 543, Pt. C, §2 (NEW).]

    3. Liability when dissociation did not result in dissolution. A person that has dissociated as a general partner but whose dissociation did not result in a dissolution and winding up of the limited partnership’s activities is liable on a transaction entered into by the limited partnership after the dissociation only if:
    A. A general partner would be liable on the transaction; and [PL 2005, c. 543, Pt. C, §2 (NEW).]
    B. At the time the other party enters into the transaction:

    (1) Less than 2 years has passed since the dissociation; and
    (2) The other party does not have notice of the dissociation and reasonably believes that the person is a general partner. [PL 2005, c. 543, Pt. C, §2 (NEW).]

    [PL 2005, c. 543, Pt. C, §2 (NEW).]

    4. Release upon agreement with creditor. By agreement with a creditor of a limited partnership and the limited partnership, a person dissociated as a general partner may be released from liability for an obligation of the limited partnership.

    [PL 2005, c. 543, Pt. C, §2 (NEW).]

    5. Release upon creditor’s agreement to material alteration without consent. A person dissociated as a general partner is released from liability for an obligation of the limited partnership if the limited partnership’s creditor, with notice of the person’s dissociation as a general partner but without the person’s consent, agrees to a material alteration in the nature or time of payment of the obligation.

    [PL 2005, c. 543, Pt. C, §2 (NEW).]

    SECTION HISTORY

    PL 2005, c. 543, §C2 (NEW).