Section 10-9B-804 Distribution of assets. - Alabama Statutes

Section 10-9B-804

Distribution of assets.

REPEALED IN THE 2009 REGULAR SESSION BY ACT 2009-621, EFFECTIVE JANUARY 1, 2010.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

Upon the winding up of a limited partnership formed under this chapter, the assets shall be distributed in the following order of priority:

(1) To creditors (including partners who are creditors, to the extent permitted by Section 10-9B-107 or otherwise permitted by law), in satisfaction of liabilities of the limited partnership other than liabilities, even though enforceable by a partner as a creditor, under Section 10-9B-606 for distributions to partners under Section 10-9B-601 or Section 10-9B-604;

(2) Except as provided in the partnership agreement, to partners and former partners in satisfaction of liabilities for distributions under Section 10-9B-601 or Section 10-9B-604; and

(3) Except as provided in the partnership agreement, to partners first to the extent of the credit balances of their respective capital accounts, and secondly respecting their partnership interests, in the proportions in which the partners share in distributions.

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