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§1011. Interest as general partner


Published: 2015

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§1011. Interest as general partner








1. Not personally liable on contract. 
Except as otherwise provided in subsection 3 or unless personal liability is imposed
in the contract, a trustee who holds an interest as a general partner in a general
or limited partnership is not personally liable on a contract entered into by the
partnership after the trust's acquisition of the interest if the fiduciary capacity
was disclosed in the contract or in a statement previously filed pursuant to the Uniform
Partnership Act or the Uniform Limited Partnership Act.


[
2005, c. 543, Pt. D, §12 (AMD);
2005, c. 543, Pt. D, §18 (AFF)
.]








2. Not personally liable for torts. 
Except as otherwise provided in subsection 3, a trustee who holds an interest as
a general partner is not personally liable for torts committed by the partnership
or for obligations arising from ownership or control of the interest unless the trustee
is personally at fault.


[
2003, c. 618, Pt. A, §1 (NEW);
2003, c. 618, Pt. A, §2 (AFF)
.]








3. Exceptions to immunity. 
The immunity provided by this section does not apply if an interest in the partnership
is held by the trustee in a capacity other than that of trustee or is held by the
trustee's spouse or one or more of the trustee's descendants, siblings or parents
or the spouse of any of the trustee's descendants, siblings or parents.


[
2003, c. 618, Pt. A, §1 (NEW);
2003, c. 618, Pt. A, §2 (AFF)
.]








4. Liability of settlor. 
If the trustee of a revocable trust holds an interest as a general partner, the
settlor is personally liable for contracts and other obligations of the partnership
as if the settlor were a general partner.


[
2003, c. 618, Pt. A, §1 (NEW);
2003, c. 618, Pt. A, §2 (AFF)
.]





SECTION HISTORY

2003, c. 618, §A1 (NEW).
2003, c. 618, §A2 (AFF).
2005, c. 543, §D12 (AMD).
2005, c. 543, §D18 (AFF).