1. If a partner has received the return of a part of the partner's contribution without violation of the partnership agreement or this chapter, for one year after the return, the partner is liable to the limited partnership for the amount of the returned contribution 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, for six years after the return, the partner is liable to the limited partnership for the amount of the contribution wrongfully returned.
3. A partner receives a return of contribution only to the extent that a distribution to the partner reduces the partner's share of the fair value, as specified in the certificate of limited partnership, of the partner's contribution which has not been distributed to the partner.
[C24, 27, 31, 35, 39, § 9832; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 545.27; 82 Acts, ch 1103, § 608]
C93, § 487.608
Referred to in § 487.601
© 1997 Cornell College and League of Women Voters of Iowa
Last update: Mon Jan 27 16:05:08 CST 1997