Legal Research Home > New York Lawyer > Partnership > New York Partnership Law Section 102 - Loans And Other Business Transactions With Limited Partner.




    § 102. Loans and other business transactions with limited partner. (1)
  A  limited  partner  also  may loan money to and transact other business
  with the partnership, and, unless he is also a general partner,  receive
  on  account  of  resulting  claims against the partnership, with general
  creditors, a pro rata share of the assets. No limited partner  shall  in
  respect to any such claim
    (a)  Receive  or hold as collateral security any partnership property,
  or,
    (b) Receive from a general partner or  the  partnership  any  payment,
  conveyance  or  release from liability, if at the time the assets of the
  partnership are not sufficient to discharge partnership  liabilities  to
  persons not claiming as general or limited partners.
    (2)  The receiving of collateral security, or a payment, conveyance or
  release in violation of the provisions of subdivision one is a fraud  on
  the creditors of the partnership.

Last modified: August 9, 2006