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Session Laws, 1916
Volume 534, Page 325   View pdf image (33K)
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EMERSON C. HARRINGTON, GOVERNOR. 325

partnership affairs, creditors of the first or dissolved partner-
ship 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 para-
graphs (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 partnership prop-
erty, 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 per-
sons who promise to pay the debts and who continue the busi-
ness of the dissolved partnership, creditors of the dissolved
partnership are also creditors of the person or partnership con-
tinuing the business.

(5) When any partner wrongfully causes a dissolution
and the remaining 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 person or part-
nership continuing the business.

(6) When a partner is expelled and the remaining part-
ners continue the business either alone or with others, without
liquidation of the partnership affairs, creditors of the dissolved
partnership arc also creditors of the person or partnership con
tinuing the business.

(7) The liability of a third person becoming a partner in
the partnership continuing the business, under this section to
the creditors of the dissolved 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 dissolved partnership, as against the separate
creditors of the retiring or deceased partner or the representa-
tive of the deceased partner, have a prior right to any claim

 

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Session Laws, 1916
Volume 534, Page 325   View pdf image (33K)
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