§ 14-9A-44 - Loans and other business transactions between limited partner and partnership; limitation on resulting claims against partnership - Georgia Statutes

O.C.G.A. 14-9A-44 (2010)
14-9A-44. Loans and other business transactions between limited partner and partnership; limitation on resulting claims against partnership

(a) A limited partner may loan money to and transact other business with the partnership and, unless he is also a general partner, receive on account of resulting claims against the partnership, with general creditors, a pro rata share of the assets. No limited partner shall in respect to any such claim:

(1) Receive or hold as collateral security any partnership property; or

(2) Receive from a general partner or the partnership any payment, conveyance, or release from liability, if at the time the assets of the partnership are not sufficient to discharge partnership liabilities to persons not claiming as general or limited partners.

(b) The receiving of collateral security, or a payment, conveyance, or release in violation of subsection (a) of this Code section is a fraud on the creditors of the partnership.