Section 10-9B-702 Assignment of partnership interest. - Alabama Statutes

Section 10-9B-702

Assignment of partnership interest.

REPEALED IN THE 2009 REGULAR SESSION BY ACT 2009-621, EFFECTIVE JANUARY 1, 2010. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.

(a) Except as provided in the partnership agreement:

(i) A partnership interest is assignable in whole or in part;

(ii) 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;

(iii) An assignment entitles the assignee to share in such capital and profits and losses, to receive such distribution or distributions, and to receive such allocation of income, gain, loss, deduction, or credit or similar item to which the assignor was entitled, to the extent assigned; and

(iv) A partner ceases to be a partner upon assignment of all his or her partnership interest.

(b) The assignment of a limited partnership interest does not release the assignor from his or her liability to the limited partnership under Section 10-9B-502 or (in the case of an assignor who is a general partner) from any liability under Section 10-9B-207.

(c) The partnership agreement may provide that a partner's interest in a partnership may be evidenced by a certificate of partnership interest issued by the partnership and may also provide for the assignment or transfer of any partnership interest represented by the certificate and make other reasonable provisions with respect to such certificates.

(Act 97-921, 1st Ex. Sess., p. 335, §1.)