LD 1609
pg. 130
Page 129 of 148 An Act To Establish the Uniform Partnership Act Page 131 of 148
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LR 1469
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continued as if the merger had not occurred or the surviving entity
may be substituted as a party. Title to partnership property vests
in the surviving entity without further act or deed and without
reversion or impairment.

 
Subsection (b) makes the Secretary of State the agent for
service of process in any action against the surviving entity, if
it is a foreign entity, to enforce an obligation of a domestic
partnership that is a party to the merger. The purpose of this
rule is to make it more convenient for local creditors to sue a
foreign surviving entity when the credit was extended to a
domestic partnership that has disappeared as a result of the
merger.

 
Subsection (c) provides that a general partner of the
surviving entity is liable for (1) all obligations for which the
partner was personally liable before the merger; (2) all other
obligations of the surviving entity incurred before the merger by
a party to the merger, which obligations may be satisfied only
out of the surviving entity's partnership property; and (3) all
obligations incurred by the surviving entity after the merger,
limited to the surviving entity's property in the case of limited
partners and also limited to obligations of the partnership for
which the partner was personally liable under Section 306.

 
This scheme of liability is similar to that of an incoming
partner under Section 306(b). Only the surviving partnership
itself is liable for all obligations, including obligations
incurred by every constituent party before the merger. A general
partner of the surviving entity is personally liable for
obligations of the surviving entity incurred before the merger by
the partnership of which he was a partner and those incurred by
the surviving entity after the merger. Thus, a general partner
of the surviving entity is liable only to the extent of his
partnership interest for obligations incurred before the merger
by a constituent party of which he was not a general partner.

 
Subsection (d) requires general partners to contribute the
amount necessary to satisfy all obligations for which they were
personally liable before the merger, if such obligations are not
satisfied out of the partnership property of the surviving
entity, in the same manner as provided in Section 807 or the
limited partnership act of the applicable jurisdiction, as if the
merged party were then dissolved. See RULPA §§ 502, 608.

 
Subsection (e) provides for the dissociation of a partner of a
party to the merger who does not become a partner in the
surviving entity. The surviving entity must buy out that
partner's interest in the partnership under Section 701 or other
specifically applicable statute. If the state limited


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