§ 59-70. Rules for distribution. - North Carolina Statutes

§59‑70.  Rules for distribution.

In settling accounts betweenthe partners after dissolution, the following rules shall be observed, subjectto any agreement to the contrary:

(1)        The assets of thepartnership are

a.         The partnershipproperty,

b.         The contributions ofthe partners necessary for the payment of all the liabilities specified insubdivision (2) of this section.

(2)        The liabilities ofthe partnership shall rank in order of payment, as follows:

a.         Those owing tocreditors other than partners,

b.         Those owing topartners other than for capital and profits,

c.         Those owing topartners in respect of capital,

d.         Those owing topartners in respect of profits.

(3)        The assets shall beapplied in the order of their declaration in subdivision (1) of this section tothe satisfaction of the liabilities.

(4)        The partners shallcontribute, as provided by G.S. 59‑48, subdivision (1) the amountnecessary to satisfy the liabilities; but if any, but not all, of the partnersare insolvent, or, not being subject to process, refuse to contribute, theother partners shall contribute their share of the liabilities, and, in therelative proportions in which they share the profits, the additional amountnecessary to pay the liabilities.

(5)        An assignee for thebenefit of creditors or any person appointed by the court shall have the rightto enforce the contributions specified in subdivision (4) of this section.

(6)        Any partner or hislegal representative shall have the right  to enforce the contributionsspecified in subdivision (4) of this section, to the extent of the amount whichhe has paid in excess of his share of the liability.

(7)        The individualproperty of a deceased partner shall be liable for the contributions specifiedin subdivision (4) of this section.

(8)        When partnershipproperty and the individual properties of the partners are in possession of acourt for distribution, partnership creditors shall have priority onpartnership property and separate creditors on individual property, saving therights of lien or secured creditors as heretofore.

(9)        Where a partner hasbecome bankrupt or his estate is insolvent the claims against the separateproperty shall rank in the following order:

a.         Those owing toseparate creditors,

b.         Those owing topartnership creditors,

c.         Those owing topartners by way of contribution. (1941, c. 374, s. 40.)