Section 703 - Dissociated partner's liability to other persons. - Maryland Statutes

§ 9A-703. Dissociated partner's liability to other persons.
 

(a)  Effect of dissociation on liabilities.- A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation incurred before dissociation. A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provided in subsection (b) of this section. 

(b)  Liability after dissociation.- A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under Subtitle 9 of this title, within 2 years after the partner's dissociation, only if the obligation is one for which the partner is liable under § 9A-306 of this title and at the time of entering into the transaction the other party: 

(1) Reasonably believed that the dissociated partner was then a partner; 

(2) Did not have notice of the partner's dissociation; and 

(3) Is not deemed to have had knowledge under § 9A-303(e) of this title or notice under § 9A-704(c) of this subtitle. 

(c)  Release from liability by consent.- By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation. 

(d)  Release from liability by material alteration of obligation.- A dissociated partner is released from liability for a partnership obligation if a partnership creditor, with notice of the partner's dissociation but without the partner's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation. 
 

[1997, ch. 654, § 2; 1998, ch. 743, §§ 1, 3.]