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Rules for distribution - 15 Pa. Cons. Stat. § 8362

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     § 8362.  Rules for distribution.
        In settling accounts between the partners after dissolution,
     the following rules shall be observed, subject to any agreement
     to the contrary:
            (1)  The assets of the partnership are:
                (i)  The partnership property.
                (ii)  The contributions of the partners necessary for
            the payment of all the liabilities specified in paragraph
            (2).
            (2)  The liabilities of the partnership shall rank, in
        order of payment, as follows:
                (i)  Those owing to creditors other than partners.
                (ii)  Those owing to partners other than for capital
            and profits.
                (iii)  Those owing to partners in respect of capital.
                (iv)  Those owing to partners in respect of profits.
            (3)  The assets shall be applied, in order of their
        declaration in paragraph (1), to the satisfaction of the
        liabilities.
            (4)  The partners shall contribute, as provided by
        section 8331(1) (relating to rules determining rights and
        duties of partners), the amount necessary to satisfy the
        liabilities, but if any, but not all, of the partners are
        insolvent or, not being subject to process, refuse to
        contribute, the other partners shall contribute their share
        of the liabilities and, in the relative proportions in which
        they share the profits, the additional amount necessary to
        pay the liabilities.
            (5)  An assignee for the benefit of creditors, or any
        person appointed by the court, shall have the right to
        enforce the contributions specified in paragraph (4).
            (6)  Any partner or his legal representative shall have
        the right to enforce the contributions specified in paragraph
        (4) to the extent of the amount which he has paid in excess
        of his share of the liability.
            (7)  The individual property of a deceased partner shall
        be liable for the contributions specified in paragraph (4).
            (8)  When partnership property and the individual
        properties of the partners are in the possession of a court
        for distribution, partnership creditors shall have priority
        on partnership property, and separate creditors on individual
        property, saving the rights of lien or secured creditors as
        heretofore.
            (9)  Where a partner has become bankrupt or his estate is
        insolvent, the claims against his separate property shall
        rank in the following order:
                (i)  Those owing to separate creditors.
                (ii)  Those owing to partnership creditors.
                (iii)  Those owing to partners by way of
            contribution.

Last modified: November 27, 2007