§ 8417. Amendment and effect of partnership agreement.

417 words·~2 min read·/pa/title-15/chapter-84/8417

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

(a)Approval of amendments.-- A partnership agreement may specify that its amendment requires the approval of a person that is not a party to the agreement or the satisfaction of a condition. An amendment is ineffective if its adoption does not include the required approval or satisfy the specified condition. See section 8441(j) (relating to partner's rights and duties).

(b)Obligations to nonpartners.-- The obligations of a partnership and its partners to a person in the person's capacity as a transferee or person dissociated as a partner are governed by the partnership agreement. Except as provided in section 8445(d) (relating to sharing of and right to distribution before dissolution) or in a court order issued under section 8454(b)(2) (relating to charging order) to effectuate a charging order, an amendment to the partnership agreement made after a person becomes a transferee or is dissociated as a partner:

(1)is effective with regard to any debt, obligation or other liability of the partnership or its partners to the person in the person's capacity as a transferee or person dissociated as a partner; and

(2)is not effective to the extent the amendment:

(i)imposes a new debt, obligation or other liability on the transferee or person dissociated as a partner; or

(ii)prejudices the rights under section 8471 (relating to purchase of interest of person dissociated as partner) of a person that dissociated as a partner before the amendment was made.

(c)Provisions in filed documents.-- If a document delivered by a partnership to the department for filing becomes effective and contains a provision that would be ineffective under section 8415(c) or (d)(3) (relating to contents of partnership agreement) if contained in the partnership agreement, the provision is ineffective in the document.

(d)Conflicts with partnership agreement.-- Subject to subsection (c), if a document delivered by a partnership to the department for filing becomes effective and conflicts with a provision of the partnership agreement:

(1)the agreement prevails as to partners, persons dissociated as partners and transferees; and

(2)the document prevails as to other persons to the extent they reasonably rely on the document.

(e)Prohibition of oral amendments.-- If a provision of a partnership agreement in record form provides that the partnership agreement cannot be amended, modified or rescinded except in record form, an oral agreement, amendment, modification or rescission shall not be enforceable.

15c8417v

Cross References. Section 8417 is referred to in section 8415 of this title.

15c8418s