PARTNERSHIPS—LIMITED. 2313

the person or in the partnership carrying on the business, or bound by
the obligations of such person or partnership; provided that on ascertain-
ing the mistake he promptly renounces his interest in the profits of the
business, or other compensation by way of income.
See sec. 19 and notes.

An. Code, sec. 12. 1918, ch. 280, sec. 12.

12. (ONE PERSON BOTH GENERAL AND LIMITED PARTNER.) (1) A
person may be a general partner and a limited partner in the same part-
nership at the same time.

(2) A person who is a general, and also at the same time a limited part-
nor, shall have all the rights and powers and be subject to all the restric-
tions of a general partner; except that, in respect to his contribution, he
shall have the rights against the other members which he would have had
if he were not also a general partner.

An. Code, sec. 13. 1918, ch. 280, sec. 13.

13. (LOANS AND OTHER BUSINESS TRANSACTIONS WITH LIMITED
PARTNER.) (1) A limited partner also may loan money to and transact
other business with the partnership, and, unless he is also a general part-
ner, receive on account of resulting claims against the partnership, with
general creditors, a pro rata share of the assets. No limited partner shall
in respect to any such claim

(a) Receive or hold as collateral security any partnership property, or
(b) Receive from a general partner or the partnership any payment,
conveyance, or release from liability, if at the time the assets of the part-
nership are not sufficient to discharge partnership liabilities to persons not
claiming as general or limited partners.

(2) The receiving of collateral security, or a payment, conveyance, or
release in violation of the provisions of paragraph (1) is a fraud on the
creditors of the partnership.1

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

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

An. Code, sec. 14. 1918, ch. 280, sec. 14.

14. (RELATION OF LIMITED PARTNERS INTER SE.) Where there are
several limited partners the members may agree that one or more of the
limited partners shall have a priority over other limited partners as to
the return of their contributions, as to their compensation by way of
income, or as to any other matter. If such an agreement is made it shall
be stated in the certificate, and in the absence of such a statement all the
limited partners shall stand upon equal footing.

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

1 The entire " Limited Partnerships " article was repealed and re-enacted by the act
of 1918, ch. 280. The annotations in vol. 2 of the Code of 1912 refer to the sections of
this article as they stood prior to the act of 1918, but are reproduced under the corre-
spondingly numbered sections of the new article in the hope that they may be of some
use.