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partnership, as of the date money or other property is | transferred or debt incurred by the limited partnership; and |
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| B.__In all other cases, as of the date: |
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| (1)__The distribution is authorized, if the payment | occurs within 120 days after that date; or |
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| (2)__The payment is made, if payment occurs more than | 120 days after the distribution is authorized. |
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| | 5.__Indebtedness to partner and general, unsecured creditors.__ | A limited partnership's indebtedness to a partner incurred by | reason of a distribution made in accordance with this section is | at parity with the limited partnership's indebtedness to its | general, unsecured creditors. |
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| | 6.__Indebtedness not considered liability.__A limited | partnership's indebtedness, including indebtedness issued in | connection with or as part of a distribution, is not considered a | liability for purposes of subsection 2 if the terms of the | indebtedness provide that payment of principal and interest are | made only to the extent that a distribution could then be made to | partners under this section. |
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| | 7.__Indebtedness issued as distribution; date payment made.__ | If indebtedness is issued as a distribution, each payment of | principal or interest on the indebtedness is treated as a | distribution, the effect of which is measured on the date the | payment is made. |
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| §1369.__Liability for improper distributions |
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| | 1.__General partner liable if consent to distribution not in | compliance.__A general partner that consents to a distribution | made in violation of section 1368 is personally liable to the | limited partnership for the amount of the distribution that | exceeds the amount that could have been distributed without the | violation if it is established that in consenting to the | distribution the general partner failed to comply with section | 1358. |
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| | 2.__Partner or transferee liable for excess amount received.__ | A partner or transferee that received a distribution knowing that | the distribution to that partner or transferee was made in | violation of section 1368 is personally liable to the limited | partnership but only to the extent that the distribution received | by the partner or transferee exceeded the amount that could have | been properly paid under section 1368. |
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