50-73.43 - Liability upon return of contribution. - Virginia Statutes

§ 50-73.43. Liability upon return of contribution.

A. If a partner has received the return of any part of his contributionwithout violation of the partnership agreement or this chapter, he is liableto the limited partnership for a period of one year thereafter for the amountof the returned contribution, but only to the extent necessary to dischargethe limited partnership's liabilities to creditors who extended credit to thelimited partnership during the period the contribution was held by thepartnership.

B. If a partner has received the return of any part of his contribution inviolation of the partnership agreement or this chapter, he is liable to thelimited partnership for a period of six years thereafter for the amount ofthe contribution wrongfully returned.

C. A partner receives a return of his contribution to the extent that adistribution to him reduces his share of the fair value of the net assets ofthe limited partnership below the value, as set forth in the partnershiprecords to be kept pursuant to § 50-73.8, of his contribution which has notbeen distributed to him.

(1985, c. 607; 1987, c. 702.)