Code of Alabama - Title 10A: Alabama Business and Nonprofit Entities Code - Section 10A-8A-8.06 - Known claims against dissolved partnership

Section 10A-8A-8.06 - Known claims against dissolved partnership.

Notwithstanding Sections 10A-1-9.01 and 10A-1-9.21:

(a) A dissolved partnership may dispose of any known claims against it by following the procedures described in subsection (b) at any time after the effective date of the dissolution of the partnership.

(b) A dissolved partnership may give notice of the dissolution in writing to the holder of any known claim. The notice must:

(1) identify the dissolved partnership;

(2) describe the information required to be included in a claim;

(3) provide a mailing address to which the claim is to be sent;

(4) state the deadline, which may not be fewer than 120 days from the effective date of the notice, by which the dissolved partnership must receive the claim;

(5) state that if not sooner barred, the claim will be barred if not received by the deadline; and

(6) unless the partnership has been throughout its existence a limited liability partnership, state that the barring of a claim against the partnership will also bar any corresponding claim against any partner or person dissociated as a partner which is based on Section 10A-8A-3.06.

(c) Unless sooner barred by any other statute limiting actions, a claim against a dissolved partnership is barred:

(1) if a claimant who was given notice under subsection (b) does not deliver the claim to the dissolved partnership by the deadline; or

(2) if a claimant whose claim was rejected by the dissolved partnership, does not commence a proceeding to enforce the claim within 90 days from the effective date of the rejection notice.

(d) For purposes of this section, "known claim" or "claim" includes unliquidated claims, but does not include a contingent liability that has not matured so that there is no immediate right to bring suit or a claim based on an event occurring after the effective date of dissolution.

(e) Nothing in this section shall be deemed to extend any otherwise applicable statute of limitations.

(Act 2018-125, §7.)

Last modified: May 3, 2021