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Texas Business Organizations Code - Section 153.208. Sharing Of Distributions

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 153.208. Sharing Of Distributions

§ 153.208. SHARING OF DISTRIBUTIONS.  (a) A distribution 
of cash or another asset of a limited partnership shall be made to a 
partner in the manner provided by a written partnership agreement.
	(b)  If a written partnership agreement does not provide 
otherwise, a distribution that is a return of capital shall be made 
on the basis of the agreed value, as stated in the partnership 
records required to be maintained under Section 153.551(a), of the 
contribution made by each partner to the extent that the 
contribution has not been returned.  A distribution that is not a 
return of capital shall be made in proportion to the allocation of 
profits as determined under Section 153.206.
	(c)  Unless otherwise defined by a written partnership 
agreement, in this section, "return of capital" means a 
distribution to a partner to the extent that the partner's capital 
account, immediately after the distribution, is less than the 
amount of that partner's contribution to the partnership as reduced 
by a prior distribution that was a return of capital.

Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.                     

Last modified: August 11, 2007