362.345 Rules for distribution.

376 words·~2 min read·/ky/chapter-362/362-345

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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:

(a)The partnership property,

(b)The contributions of the partners specified in subsection

(4)of this section.

(2)The liabilities of the partnership shall 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 subsection

(1)of this

section to the satisfaction of the liabilities.

(4)Except as provided in KRS 362.220(2):

(a)The partners shall contribute, as provided by subsection

(1)of KRS 362.235

the amount necessary to satisfy the liabilities; and

(b)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 subsection

(4)of this section.

(6)Any partner or his legal representative shall have the right to enforce the

contributions specified in subsection

(4)of this section, 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 subsection

(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 shall have priority on

partnership property and separate creditors on individual property, saving the rights

of lien or secured creditors as heretofore.

(9)If a partner has become bankrupt or his estate is insolvent, the claims against his

separate property shall 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.