NC General Statutes

N.C. Gen. Stat. § 59-70 (2026)

Rules for distribution

✓ current as of July 2026

Find cases: SyfertCases citing this section NCLEGncleg.gov (official) JustiaChapter 59 CornellLII Search CasesGoogle Scholar

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 all of the following:

a. The partnership property.

b. The contributions of the partners necessary for the payment of all the liabilities specified in subdivision (2) of this section.

(2) The liabilities of the partnership rank in order of payment, as follows:

a. Those owing to creditors other than partners.

b. Those owing to partners other than for capital and profits.

c. Those owing to partners in respect of capital.

d. Those owing to partners in respect of profits.

(3) The assets shall be applied in the order of their declaration in subdivision (1) of this section to the satisfaction of the liabilities.

(4) The partners shall contribute, as provided by G.S. 59-48(1), the amount necessary to satisfy any liabilities incurred when the partnership was not a registered limited liability partnership; 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 these liabilities, and, in the relative proportions in which they share the profits, the additional amount necessary to pay these liabilities.

(5) An assignee for the benefit of creditors or any person appointed by the court has the right to enforce the contributions specified in subdivision (4) of this section.

(6) A partner has the right to enforce the contributions specified in subdivision (4) of this section to the extent of the amount that the partner has paid in excess of the partner's share of the liability.

(7) The individual property of a deceased partner is subject to the contributions specified in subdivision (4) of this section.

(8) When partnership property and the individual properties of the partners are in possession of a court for distribution, partnership creditors have priority on partnership property and separate creditors have priority on individual property, saving the rights of lien or secured creditors.

(9) Where a partner has become bankrupt or the partner's estate is insolvent, the claims against the separate property rank in the following order:

a. Those owing to separate creditors.

b. Those owing to partnership creditors.

c. Those owing to partners by way of contribution. (1941, c. 374, s. 40; 2022-64, s. 4(b).)

Notes of Decisions

Cited in 6 cases (2 in the last 5 years), 1946–2023 · leading case: Simmons v. Quick-Stop Food Mart, Inc., 296 S.E.2d 275 (N.C. 1982).

Sort: Relevance Newest Treatment

Simmons v. Quick-Stop Food Mart, Inc., 296 S.E.2d 275 (N.C. 1982). · cites it 2× “See N.C. Gen. Stat. § 59-70 (1975). In the pres *41 ent case, apparently the partners assumed that the dissolution agreement and the conveyances of 30 June 1976 served to wind up the partnership.”

Ewing v. Caldwell, 89 S.E.2d 774 (N.C. 1955). “) The partnership property is to be applied to discharge its liabilities and the surplus to the payment in cash of the net amount owing to the respective partners.”

O'Neal v. Burley (N.C. Ct. App. 2023). · cites it 15× “The assets of a partnership include partnership property and “[t]he contributions of the partners necessary for the payment of all the liabilities” owed by the partnership under N.C. Gen. Stat. § 59-70 (2) (2021). N.C. Gen.”

Hardin v. Lewis, 2016 NCBC 55 (N.C. Bus. Ct. 2016). · cites it 10× “On July 14, 2015, the Court issued an order ("July 14 Order") that required, inter alia, (a) Defendants arrange a meeting between Plaintiff's accountant and the Firm's accountant for "the purposes of allowing the accountants to determine any distribution that may be owed to…”

Nallapati v. Justh Holdings LLC (E.D.N.C. 2023). “§ 59-70 . The partners who have not wrongfully dissolved the partnership hold the right to wind up the partnership affairs.”

Benson v. . Roberson, 36 S.E.2d 729 (N.C. 1946). “G. S., 59-70. The assets are insufficient to pay more than a small percentage of claims as allowed by the receiver.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.