Section 10-9B-805

Settling of accounts; applicability of section.

(a) In settling accounts after dissolution, the liabilities of the partnership shall be entitled to payment in the following order:

(1) Those to creditors, in the order of priority as provided by law, except those to limited partners on account of their contributions and to general partners;

(2) Those to limited partners in respect to their share of the profits and other compensation by way of income on their contributions;

(3) Those to limited partners in respect to the capital of their contributions;

(4) Those to general partners other than for capital and profits;

(5) Those to general partners in respect to profits; and

(6) Those to general partners in respect to capital.

(b) Subject to any statement in the certificate or to subsequent agreement, limited partners share in the partnership assets in respect to their claims for capital and in respect to their claims for profits or for compensation by way of income on their contributions, respectively, in proportion to the respective amounts of such claims.

(c) This section shall not apply to limited partnerships formed under the laws of this state on or after January 1, 1984, but shall apply only (i) to limited partnerships formed under the laws of this state on or after January 1, 1972, and prior to January 1, 1984, and (ii) to limited partnerships formed under the laws of this state prior to January 1, 1972, which elected to come within the limited partnership provisions which became effective January 1, 1972, or which renewed their existence, except as such renewal was provided in the original agreement, on or after January 1, 1972, and prior to January 1, 1984.

(Act 97-921, 1st Ex. Sess., p. 335, § 1.)