Official Code of Georgia Annotated

Title 14. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS · Chapter 9A. LIMITED PARTNERSHIPS · Article 1. LIMITED PARTNERSHIPS FORMED SINCE FEBRUARY 15, 1952 · Part 3. LIMITED PARTNERS

14-9A-44. Loans and other business transactions between limited partner and partnership; limitation on resulting claims against partnership.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
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:#
1. (1)
  Receive or hold as collateral security any partnership property; or#
2. (2)
  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.#
(b)
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.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

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.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t14-(v12)-2017-pdf.pdf, Volume V12, 2017 edition, page 1073; merge action: carried; file SHA-256 f2fad2b71b39.

Ask about this section

The answer is drawn from this section and, when they fit, the other sections of its chapter. It quotes the text and names the section for each claim. Not legal advice.