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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1613   View pdf image (33K)
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ART. 73] PREFERENCES. 1613

transferred to him in the shape of dividends, profits or otherwise
during the continuance of the partnership, but any partner may annu-
ally receive lawful interest on the sum so contributed by him if the
payment of such interest shall not reduce the original amount of such
capital, and if, after payment of such interest, any profits shall remain
to be divided, he may also receive his portion of such profits.

This section prevents a special partner from withdrawing his capital
before the expiration of the period limited in the certificate, and while there
are debts outstanding. Safe Deposit Co. v. Cahn, 102 Md. 549.

This section referred to in construing section 2, et seq. Lineweaver v.
Slagle, 64 Md. 485.

1904, art. 73, sec. 14. 1888, art. 73, sec. 14. 1860, art. 72, sec. 14.
1836, ch. 97, sec. 13.

14. If it shall appear that by the payment of interest or profits to
any special partner the original capital has been reduced, the partner
receiving the same shall be bound to restore the amount necessary to
make good his share of capital with interest.

This section referred to in construing section 2, et seq. Lineweaver v.
Slagle, 64 Md. 485.

Ibid. sec. 15. 1888, art. 73, sec. 15. 1860, art 72, sec. 15.
1836, ch. 97, sec. 15.

15. Every sale, assignment or transfer of any property or effects of
such partnership made by such partnership when insolvent or in contem-
plation of insolvency or after or in contemplation of the insolvency of
any partner, with the intent of giving a preference to any creditor of
such partnership or insolvent partner, and every judgment confessed,
lien created or security given by such partnership under the like circum-
stances and with the like intent shall be void as against the creditors of
such partnership.

Where a firm which is knowingly insolvent transfers property to one of
its creditors, thereby paying the latter in full, the law conclusively presumes
the intention to prefer; hence the special partner is liable as a general
partner under section 17. Lineweaver v. Slagle, 64 Md. 487.

Ibid. sec. 16. 1888, art. 73, sec. 16. 1860, art. 72, sec. 16.
1836, ch. 97, sec. 16.

16. Every such sale, assignment or transfer of any of the property
of a general or special partner made by such general or special partner
when insolvent, or in contemplation of insolvency, or after or in con-
templation of the insolvency of the partnership, with intent of giving
to any creditor of his own or of the partnership a preference over the
creditors of the partnership, and every judgment confessed or lien
created or security given by any such partner under like circumstances
and with the like intent shall be void as against the creditors of the
partnership.

See note to sec. 15.

Ibid. sec. 17. 1888, art. 73. sec. 17. 1860, art. 72, sec. 17.
1836, ch. 97, sec. 17.

17. Every special partner who shall violate any of the provisions of
the two preceding sections or who shall concur in or assent to any such

 

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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1613   View pdf image (33K)
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