PARTNERSHIP 2777

individual property, saving the rights of lien or secured creditors as here-
tofore.

(i) Where a partner has become bankrupt or his estate is insolvent the
claims against his separate property shall rank in the following order:

I. Those owing to separate creditors,
II. Those owing to partnership creditors,
III. Those owing to partners by way of contribution.
Cited but not construed in McLane v. State Tax Commn., 156 Md. 145.
See notes to sec. 18.

An. Code, 1924, sec. 41. 1912, sec. 41. 1916, ch. 175, sec. 41.

41. (Liability of Persons Continuing the Business in Certain Cases.)
(1) When any new partner is admitted into an existing partnership, or
when any partner retires and assigns (or the representative of the. de-
ceased partner assigns) his rights in partnership property to two or more
of the partners, or to one or more of the partners and one or more third
persons, if the business is continued without liquidation of the partnership
affairs, creditors of the first or dissolved partnership are also creditors of
the partnership so continuing the business.

(2) When all but one partner retire and assign (or the representative
of a deceased partner assigns) their rights in partnership property to the
remaining partner, who continues the business without liquidation of
partnership affairs, either alone or with others, creditors of the dissolved
partnership are also creditors of the person or partnership so continuing
the business.

(3) When any partner retires or dies and the business of the dissolved
partnership is continued as set forth in paragraphs (1) and (2) of this
section, with the consent of the retired partners or the representative of
the deceased partner, but without any assignment of his right in partner-
ship property, rights of creditors of the dissolved partnership and of the
creditors of the person or partnership continuing the business shall be as
if such assignment had been made.

(4) When all the partners or their representatives assign their rights
in partnership property to one or more third persons who promise to pay
the debts and who continue the business of the dissolved partnership, cred-
itors of the dissolved partnership are also creditors of the person or part-
nership continuing the business.

(5) When any partner wrongfully causes a dissolution and the remain-
ing partners continue the business under the provisions of section 38 (2b),
either alone or with others, and without liquidation of the partnership
affairs, creditors of the dissolved partnership are also creditors of the per-
son or partnership continuing the business.

(6) When a partner is expelled and the remaining partners continue
the business either alone or with others, without liquidation of the part-
nership affairs, creditors of the dissolved partnership are also creditors of
the person or partnership continuing the business.

(7) The liability of a third person becoming a partner in the partner-
ship continuing the business, under this section to the creditors of the dis-
solved partnership shall be satisfied out of partnership property only.

(8) When the business of a partnership after dissolution is continued
under any conditions set forth in this section the creditors of the dis-
solved partnership, as against the separate creditors of the retiring or de-
ceased partner or the representative of the deceased partner, have a prior