TITLE 14
CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS
9A. Limited Partnerships, 14-9A-1 through 14-9A-130.
ARTICLE 1
LIMITED PARTNERSHIPS FORMED SINCE FEBRUARY 15, 1952
14-9A-44. Loans and other business transactions between limited partner and partnership; limitation on resulting claims against partnership.
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A limited partner 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:
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Receive or hold as collateral security any partnership property; or
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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.
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The receiving of collateral security, or a payment, conveyance, or release in violation of subsection (a) of this Code section is a fraud on the creditors of the partnership.
(Ga. L. 1952, p. 375, § 13; Code 1981, §14-9-44; Code 1981, §14-9A-44, as redesignated by Ga. L. 1988, p. 1016, § 1.)
JUDICIAL DECISIONS
Scope of Code section.
- Section limited to situations when limited partner has loaned money to or otherwise transacted business with partnership. Mills v. Kochis, 132 Ga. App. 492, 208 S.E.2d 352 (1974), aff'd, 233 Ga. 652, 212 S.E.2d 823 (1975).
RESEARCH REFERENCES
C.J.S.
- 68 C.J.S., Partnership,
§
582 et seq.
U.L.A.
- Uniform Limited Partnership Act (U.L.A.)
§
13.
