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45-13 Partnerships in General

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CHAPTER 45-13PARTNERSHIPS IN GENERAL45-13-01. (101) Definitions. For the purposes of chapters 45-13 through 45-21 unlessthe context otherwise requires:1."Address" means:a.In the case of a registered office or principal executive office, the mailing
address, including the zip code, of the actual office location, which may not be
only a post-office box; andb.In any other case, the mailing address, including the zip code.2."Authenticated electronic communication" means:a.That the electronic communication is delivered:(1)To the principal place of business of the partnership; or(2)To a managing partner or agent of the partnership authorized by the
partnership to receive the electronic communication; andb.That the electronic communication sets forth information from which the
partnership can reasonably conclude that the electronic communication was
sent by the purported sender.3."Ballot" means a written ballot or a ballot transmitted by electronic communication.4."Business" includes every trade, occupation, and profession.5."Debtor in bankruptcy" means a person that is the subject of:a.An order for relief under title 11 of the United States Code or a comparable
order under a successor statute of general application; orb.A comparable order under federal, state, or foreign law governing insolvency.6."Distribution" means a transfer of money or other property from a partnership to a
partner in the capacity of the partner as a partner or to the transferee of the partner.7."Domestic organization" means an organization created under the laws of this state.8."Electronic" means relating to technology having electrical, digital, magnetic,
wireless, optical, electromagnetic, or similar capabilities.9."Electronic communication" means any form of communication, not directly involving
the physical transmission of paper:a.That creates a record that may be retained, retrieved, and reviewed by a
recipient of the communication; andb.That may be directly reproduced in paper form by the recipient through an
automated process.10."Electronic record" means a record created, generated, sent, communicated,
received, or stored by electronic means.Page No. 111."Electronic signature" means an electronic sound, symbol, or process attached to or
logically associated with a record and signed or adopted by a person with the intent
to sign the record.12."Filed with the secretary of state" means, except as otherwise permitted by law or
rule:a.That a record meeting the applicable requirements of this chapter together with
the fees provided in section 45-13-05 was delivered or communicated to the
secretary of state by a method or medium of communication acceptable by the
secretary of state and was determined by the secretary of state to conform to
law.b.That the secretary of state did then:(1)Record the actual date on which the record was filed, and if different, the
effective date of filing; and(2)Record the record in the office of the secretary of state.13."Foreign limited liability partnership" means a partnership that is formed under laws
other than the laws of this state and has the status of a limited liability partnership
under those laws.14."Foreign organization" means an organization created under laws other than the
laws of this state for a purpose for which an organization may be created under the
laws of this state.15."Limited liability partnership" means a partnership that filed a registration under
chapter 45-22 and does not have a similar statement in effect in any other
jurisdiction.16."Managing partner" means a partner charged with the management of the
partnership in this state and if no partners are specifically so designated, then all
partners.17."Notice":a.Is given to a partnership:(1)When in writing and mailed or delivered to the principal executive office
of the partnership; or(2)When given by a form of electronic communication consented to by a
managing partner to which the notice is given if by:(a)Facsimile communication, when directed to a telephone number at
which the managing partner has consented to receive notice.(b)Electronic mail, when directed to an electronic mail address at
which the managing partner has consented to receive notice.(c)Posting on an electronic network on which the managing partner
has consented to receive notice, together with separate notice to
the managing partner of the specific posting, upon the later of:[1]The posting; or[2]The giving of the separate notice.Page No. 2(d)Any other form of electronic communication by which a managing
partner has consented to receive notice, when directed to the
partnership.b.Is given to a partner of the partnership:(1)When in writing and mailed or delivered to the partner at the principal
executive office address of the partnership; or(2)When given by a form of electronic communication consented to by the
partner to which the notice is given if by:(a)Facsimile communication, when directed to a telephone number at
which the partner has consented to receive notice;(b)Electronic mail, when directed to an electronic mail address at
which the partner has consented to receive notice;(c)Posting on an electronic network on which the partner has
consented to receive notice, together with separate notice to the
partner of the specific posting, upon the later of:[1]The posting; or[2]The giving of the separate notice; or(d)Any other form of electronic communication by which the partner
has consented to receive notice, when directed to the partner.c.Is given in all other cases:(1)When mailed to the person at an address designated by the person or at
the last-known address of the person;(2)When deposited with a nationally recognized overnight delivery service
for overnight delivery, if overnight delivery to the person is not available,
for delivery as promptly as practicable, to the person at an address
designated by the person or at the last-known address of the person;(3)When handed to the person;(4)When left at the office of the person with a clerk or other person in
charge of the office or:(a)If there is no one in charge, when left in a conspicuous place in the
office; or(b)If the office is closed or the person to be notified has no office,
when left at the dwelling, house, or other usual place of abode of
the person with some person of suitable age and discretion
residing there;(5)When given by a form of electronic communication consented to by the
person to whom the notice is given if by:(a)Facsimile communication, when directed to a telephone number at
which the person has consented to receive notice;Page No. 3(b)Electronic mail, when directed to an electronic mail address at
which the person has consented to receive notice;(c)Posting on an electronic network on which the person has
consented to receive notice, together with separate notice to the
person of the specific posting, upon the later of:[1]The posting; or[2]The giving of the separate notice; or(d)Any other form of electronic communication by which the person
has consented to receive notice, when directed to the person; or(6)When the method is fair and reasonable when all circumstances are
considered.d.Is given by mail when deposited in the United States mail with sufficient
postage affixed.e.Is given by deposit for delivery when deposited for delivery as provided in
paragraph 2 of subdivision c, after having made sufficient arrangements for
payment by the sender.f.Is deemed received when given.18."Organization":a.Means, whether a domestic or foreign, a corporation, limited liability company,
partnership, limited partnership, limited liability partnership, limited liability
limited partnership, and any other person subject to a governing statute; butb.Excludes:(1)A nonprofit corporation, whether a domestic nonprofit corporation which
is incorporated under chapter 10-33 or a foreign nonprofit corporation
which is incorporated in another jurisdiction; or(2)Any nonprofit limited liability company, whether a domestic nonprofit
limited liability company which is organized under chapter 10-36 or a
foreign nonprofit limited liability company which is organized in another
jurisdiction.19."Partnership" means an association of two or more persons to carry on as coowners
a business for profit formed under section 45-14-02, predecessor law, or comparable
law of another jurisdiction.20."Partnership agreement" means the agreement, whether written, oral, or implied,
among the partners concerning the partnership, including amendments to the
partnership agreement.21."Partnership at will" means a partnership in which the partners have not agreed to
remain partners until the expiration of a definite term or the completion of a particular
undertaking.22."Partnership interest" or "partner's interest in the partnership" means all of the
interests of a partner in the partnership, including the transferable interest of the
partner and all management and other rights.Page No. 423."Principal executive office" means an office from which the partnership conducts
business.24."Property" means all property, real, personal, or mixed, tangible or intangible, or any
interest therein.25."Record" means information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form.26."Signed" means:a.That the signature of a person, which may be a facsimile affixed, engraved,
printed,placed,stampedwithindelibleink,transmittedbyfacsimiletelecommunication or electronically, or in any other manner reproduced on the
record, is placed on a record with the present intention to authenticate that
record; andb.With respect to a record required by this chapter to be filed with the secretary of
state, that:(1)The record is signed by a person authorized to do so by this chapter or
by a resolution approved by the affirmative vote of the required
proportion or number of partners; and(2)The signature and the record are communicated by a method or medium
of communication acceptable by the secretary of state.27."State" means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, or any territory or insular possession subject to the
jurisdiction of the United States.28."Statement" means:a.A statement of partnership authority under section 45-15-03;b.A statement of denial under section 45-15-04;c.A statement of dissociation under section 45-19-04;d.A statement of dissolution under section 45-20-05;e.A statement of conversion under section 45-21-04;f.A statement of merger under section 45-21-07; org.An amendment or cancellation of any of the foregoing.29."Surviving organization" means an organization into which one or more other
organizations are merged and which:a.May preexist the merger; orb.Are created by the merger.30."Transfer" includes an assignment, conveyance, lease, mortgage, deed, and
encumbrance.45-13-01.1. Legal recognition of electronic records and electronic signatures. Forpurposes of this chapter:Page No. 51.A record of signature may not be denied legal effect or enforceability solely because
it is in electronic form;2.A contract may not be denied legal effect or enforceability solely because an
electronic record was used in its formation;3.If a provision requires a record to be in writing, an electronic record satisfies the
requirement;4.If a provision requires a signature, an electronic signature satisfies the requirement;
and5.The provisions of this chapter relating to electronic records and electronic
transactions do not limit or supersede chapter 9-16.45-13-02. (102) Knowledge and notice.1.A person knows a fact if the person has actual knowledge of it. A person does not
know or have knowledge of a fact merely because the person has reason to know or
have knowledge of the fact.2.A person has notice of a fact if the person:a.Knows of the fact;b.Has received notice of the fact as provided in subsection 17 of section
45-13-01; orc.Has reason to know the fact exists from all of the facts known to the person at
the time in question.3.A person notifies or gives a notification to another by taking the steps provided in
subsection 17 of section 45-13-01, whether or not the other person learns of it.4.A person receives a notification as provided in subsection 17 of section 45-13-01.5.Except as otherwise provided in subsection 6, and except as otherwise provided in
subsection 17 of section 45-13-01, a person other than an individual knows, has
notice, or receives a notification of a fact for purposes of a particular transaction
when the individual conducting the transaction for the person knows, has notice, or
receives a notification of the fact, or in any event when the fact would have been
brought to the attention of the individual if the person had exercised reasonable
diligence.a.A person other than an individual exercises reasonable diligence if it maintains
reasonable routines for communicating significant information to the individual
conducting the transaction for the person and there is reasonable compliance
with the routines.b.Reasonable diligence does not require an individual acting for the person to
communicate information unless the communication is part of the regular duties
of the individual or the individual has reason to know of the transaction and that
the transaction would be materially affected by the information.6.Knowledge, notice, or receipt of a notification of a fact relating to the partnership by a
managing partner is effective immediately as knowledge by, notice to, or receipt of a
notification by the partnership, except in the case of a fraud on the partnership
committed by or with the consent of that partner.Page No. 67.With respect to notice given by a form of electronic communication:a.Consent by a managing partner to notice given by electronic communication
may be given in writing or by authenticated electronic communication. The
partnership is entitled to rely on any consent so given until revoked by the
managing partner. However, no revocation affects the validity of any notice
given before receipt by the partnership of revocation of the consent.b.An affidavit of a managing partner or an authorized agent of the partnership,
that the notice has been given by a form of electronic communication is, in the
absence of fraud, prima facie evidence of the facts stated in the affidavit.45-13-02.1. Reservation of legislative right. The legislative assembly reserves theright to amend or repeal the provisions of this chapter. A partnership formed under or governed
by this chapter is subject to this reserved right.45-13-03. (103) Effect of partnership agreement - Nonwaivable provisions.1.Except as otherwise provided in subsection 2, relations among the partners and
between the partners and the partnership are governed by the partnership
agreement. To the extent the partnership agreement does not otherwise provide,
chapters 45-13 through 45-21 govern relations among the partners and between the
partners and the partnership.2.The partnership agreement may not:a.Vary the rights and duties under section 45-13-05 except to eliminate the duty
to provide copies of statements to all of the partners;b.Unreasonably restrict the right of access to books and records under
subsection 2 of section 45-16-03;c.Eliminate the duty of loyalty under subsection 2 of section 45-16-04 or
subdivision c of subsection 2 of section 45-18-03, but:(1)The partnership agreement may identify specific types or categories of
activities that do not violate the duty of loyalty, if not manifestly
unreasonable; or(2)All of the partners or a number or percentage specified in the partnership
agreement may authorize or ratify, after full disclosure of all material
facts, a specific act or transaction that otherwise would violate the duty of
loyalty;d.Unreasonably reduce the duty of care under subsection 3 of section 45-16-04
or subdivision c of subsection 2 of section 45-18-03;e.Eliminate the obligation of good faith and fair dealing under subsection 4 of
section 45-16-04, but the partnership agreement may prescribe the standards
by which the performance of the obligation is to be measured, if the standards
are not manifestly unreasonable;f.Vary the power to dissociate as a partner under subsection 1 of section
45-18-02, except to require the notice under subsection 1 of section 45-18-01 to
be in writing;g.Vary the right of a court to expel a partner in the events specified in
subsection 5 of section 45-18-01;Page No. 7h.Vary the requirement to wind up the partnership business in cases specified in
subsection 4, 5, or 6 of section 45-20-01;i.Vary the law applicable to a limited liability partnership under chapter 45-22; orj.Restrict rights of third parties under chapters 45-13 through 45-21.45-13-04. (104) Supplemental principles of law.1.Unless displaced by particular provisions of chapters 45-13 through 45-21, the
principles of law and equity supplement chapters 45-13 through 45-21.2.If an obligation to pay interest arises under chapters 45-13 through 45-21 and the
rate is not specified, the rate is that specified in section 47-14-05.45-13-04.1. Partnership name.1.A partnership name filed in a statement under section 45-13-05:a.Must be in the English language or in any other language expressed in English
letters or characters;b.May contain the name of any partner;c.May not contain the word "corporation", "company", "incorporated", "limited
liability company", "limited partnership", "limited liability partnership", "limited
liability limited partnership", or any abbreviation of these words;d.May not contain a word or phrase that indicates or implies that the partnership:(1)Is organized for a purpose other than a lawful purpose for which a
partnership may be organized under this chapter; or(2)May not be formed under this chapter; ande.May not be the same as, or deceptively similar to:(1)The name, whether foreign and authorized to do business in this state or
domestic, unless filed with the statement is a record which complies with
subsection 3 of:(a)Another partnership;(b)A limited liability company;(c)A corporation;(d)A limited partnership;(e)A limited liability partnership; or(f)A limited liability limited partnership;(2)A name, the right of which is, at the time of filing, reserved in the manner
providedinsection10-19.1-14,10-32-11,10-33-11,45-10.2-11,45-13-04.2, or 45-22-05;(3)A fictitious name registered in the manner provided in chapter 45-11; orPage No. 8(4)A trade name registered in the manner provided in chapter 47-25.2.The secretary of state shall determine whether a partnership name is deceptively
similar to another name for purposes of this chapter.3.If the secretary of state determines a partnership name is deceptively similar to
another name for purposes of this chapter, then the partnership name may not be
used unless there is filed with the statement:a.The written consent of the holder of the rights to the name to which the
proposed name is determined to be deceptively similar; orb.A certified copy of a judgment of a court in this state establishing the earlier
right of the applicant to the use of the name in this state.4.This section does not affect the right of a partnership existing on July 1, 1999, or a
foreign partnership authorized to do business in this state on July 1, 1999, to
continue the use of the foreign partnership's name.5.This section and section 45-13-04.2 do not:a.Abrogate or limit the law of unfair competition or unfair practices; chapter 47-25;
the laws of the United States with respect to the right to acquire and protect
copyrights, trade names, trademarks, service names, service marks; or any
other rights to the exclusive use of a name or symbol.b.Derogate the common law or any principle of equity.6.A partnership that is the surviving organization in a merger with one or more other
organizations, or that acquires by sale, lease, or other disposition to or exchange
with an organization all or substantially all of the assets of another organization
including its name, may have the same name, subject to the requirements of
subsection 1, as that used in this state by any of the other organizations if the other
organization whose name is sought to be used:a.Is formed under the laws of this state;b.Is authorized to transact business or conduct activities in this state;c.Holds a reserved name in the manner provided in section 10-19.1-14,
10-32-11, 10-33-11, 45-10.2-11, 45-13-04.2, or 45-22-05;d.Holds a fictitious name registered in the manner provided in chapter 45-11; ore.Holds a trade name registered in the manner provided in chapter 47-25.7.The use of a name by a partnership in violation of this section does not affect or
vitiate the partnership existence of the partnership. However, a court in this state
may, upon application of the state or of an interested or affected person, enjoin the
partnership from doing business under a name assumed in violation of this section,
although a statement may have been filed with the secretary of state.8.If the period of existence of the partnership is expired or a statement of a partnership
filed under section 45-13-05 is expired, then the partnership may reacquire the right
to use that name by refiling a statement pursuant to section 45-13-05, unless the
name was adopted for use or reserved by another person, in which case the filing
must be rejected unless the filing is accompanied by a written consent or judgment
pursuant to subsection 3.A partnership that cannot reacquire the use of itsPage No. 9partnership name shall adopt a new partnership name that complies with this
section.45-13-04.2. Reserved name.1.The exclusive right to the use of a partnership name otherwise permitted by section
45-13-04.1 may be reserved by any person.2.The reservation is made by filing with the secretary of state a request that the name
be reserved together with the fees provided in section 45-13-05.a.If the name is available for use by the applicant, the secretary of state shall
reserve the name for the exclusive use of the applicant for a period of twelve
months.b.The reservation may be renewed for successive twelve-month periods.3.The right to the exclusive use of a partnership name reserved pursuant to this
section may be transferred to another person by or on behalf of the applicant for
whom the name was reserved by filing with the secretary of state a notice of the
transfer and specifying the name and address of the transferee.4.The right to the exclusive use of a partnership name reserved pursuant to this
section may be canceled by or on behalf of the applicant for whom the name was
reserved by filing with the secretary of state a notice of the cancellation.5.The secretary of state may destroy any reserved name request and any index of
reserved names one year after expiration.45-13-05. (105) Execution, filing, and recording of statements.1.A statement may be filed in the office of the secretary of state. A certified copy of a
statement that is filed in an office in another state may be filed in the office of the
secretary of state. Either filing has the effect provided in chapters 45-13 through
45-21 with respect to partnership property located in or transactions that occur in this
state.2.A certified copy of a statement that has been filed in the office of the secretary of
state and recorded in the office for recording transfers of real property has the effect
provided for recorded statements in chapters 45-13 through 45-21.A recordedstatement that is not a certified copy of a statement filed in the office of the secretary
of state does not have the effect provided for recorded statements in chapters 45-13
through 45-21.3.A statement filed by a partnership must be executed by at least two partners. Other
statements must be executed by a partner or other person authorized by chapters
45-13 through 45-21. An individual who executes a statement as, or on behalf of, a
partner or other person named as a partner in a statement shall personally declare
under penalty of perjury that the contents of the statement are accurate.4.A person authorized by chapters 45-13 through 45-21 to file a statement may amend
or cancel the statement by filing an amendment or cancellation that names the
partnership, identifies the statement, and states the substance of the amendment or
cancellation.5.A person who files a statement pursuant to this section shall promptly send a copy of
the statement to every nonfiling partner and to any other person named as a partner
in the statement. Failure to send a copy of a statement to a partner or other person
does not limit the effectiveness of the statement as to a person not a partner.Page No. 106.Any statement filed under this section must be renewed every five years from the
date of the initial filing. A statement of renewal must be executed by the partnership
in the same manner as previously executed. If the secretary of state finds that the
statement of renewal conforms to the requirements of this section, and the proper
filing fee has been paid, the secretary of state shall file the statement of renewal. If
the secretary of state finds that the statement of renewal does not so conform, the
secretary of state shall return the statement of renewal to the partnership for any
necessary corrections. If the statement of renewal is not returned corrected within
thirty days after the statement of renewal was returned for correction, the statement
is subject to cancellation. If any partnership fails to file the statement of renewal, the
secretary of state shall cancel the initial statement and shall mail notice of the
cancellation to the last address of the principal executive office as recorded in the
office of the secretary of state.7.A partnership shall notify the secretary of state in writing upon a change in address
of the partnership's principal executive office. A statement of renewal filed by the
secretary of state which reflects a change of address of the principal executive office
of the partnership may serve as a notice under this subsection.8.a.The secretary of state shall charge and collect a fee for:(1)Filing a statement under this section, one hundred dollars.(2)Filing an amendment under this section, forty dollars.(3)Filing a cancellation under this section, twenty-five dollars.(4)Filing a renewal under this section, forty dollars.(5)Filing a request to reserve a partnership name, ten dollars.(6)Filing a notice of transfer of a reserved partnership name, ten dollars.(7)Filing a cancellation of reserved partnership name, ten dollars.(8)Filing a statement of conversion or abandonment of conversion, fifty
dollars and:(a)If the organization resulting from the conversion will be a domestic
organization governed by the laws of this state, then the fees
provided by the governing laws to establish or register a new
organization like the organization resulting from the conversion; or(b)If the organization resulting from the conversion will be a foreign
organization that will transact business in this state, then the fees
provided by the governing laws to obtain a certificate of authority or
register an organization like the organization resulting from the
conversion.(9)Filing a statement of merger, fifty dollars.(10)Any record submitted for approval before the actual time of submission
for filing, half of the fee provided in this section for filing the record.b.The officer responsible for recording transfers of real property may collect a fee
for recording a statement.45-13-06. (106) Law governing internal relations.Page No. 111.Except as otherwise provided in subsection 2, the law of the jurisdiction in which the
principal executive office of the partnership is located governs relations among the
partners and between the partners and the partnership.2.The law of this state governs relations among the partners and between the partners
and the partnership and the liability of partners for an obligation of a limited liability
partnership.45-13-07. (107) Partnership subject to amendment or repeal. A partnership governedby chapters 45-13 through 45-21 is subject to any amendment to or repeal of chapters 45-13
through 45-21.Page No. 12Document Outlinechapter 45-13 partnerships in general

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