NRS 88.525 - Liability upon return of contribution.

NV Rev Stat § 88.525 (2019) (N/A)

Copy with citation

Copy as parenthetical citation

1. If a partner has received the return of any part of the partner’s contribution without violation of the partnership agreement or this chapter, the partner is liable to the limited partnership for a period of 1 year thereafter for the amount of the returned contribution, but only to the extent necessary to discharge the limited partnership’s liabilities to creditors who extended credit to the limited partnership during the period the contribution was held by the partnership.

2. If a partner has received the return of any part of the partner’s contribution in violation of the partnership agreement or this chapter, the partner is liable to the limited partnership for a period of 6 years thereafter for the amount of the contribution wrongfully returned.

3. A partner receives a return of the partner’s contribution to the extent that a distribution to the partner reduces his or her share of the fair value of the net assets of the limited partnership below the value, as set forth in the partnership records required to be kept pursuant to NRS 88.335, of the partner’s contribution which has not been distributed to the partner.

(Added to NRS by 1985, 1290; A 1987, 75)

Previous Section

NRS 88.522 - Limitations on distributions applicable to restricted limited partnerships.

Next Section

NRS 88.528 - Nature of interest in partnership.