1938

LAWS OF MARYLAND

[Ch. 311

(2)    TO STAND, AFTER ALL LIABILITIES TO THIRD
PERSONS HAVE BEEN SATISFIED, IN THE PLACE OF THE
CREDITORS OF THE PARTNERSHIP FOR ANY PAYMENTS MADE BY HIM
IN RESPECT OF THE PARTNERSHIP LIABILITIES; AND

(3)   TO BE INDEMNIFIED BY THE PERSON GUILTY OF THE
FRAUD OR MAKING THE REPRESENTATION AGAINST ALL DEBTS AND
LIABILITIES OF THE PARTNERSHIP.

REVISOR'S NOTE: This section presently appears as
Art. 73A, §39.

The only changes are technical changes in
punctuation.

9-611. RULES FOR DISTRIBUTION.

IN SETTLING ACCOUNTS BETWEEN THE PARTNERS AFTER
DISSOLUTION, THE FOLLOWING RULES SHALL BE OBSERVED,
SUBJECT TO ANY AGREEMENT TO THE CONTRARY.

(1) THE ASSETS OF THE PARTNERSHIP ARE:

(I)    THE PARTNERSHIP PROPERTY; AND

(II) THE CONTRIBUTIONS OF THE PARTNERS NECESSARY
FOR THE PAYMENT OF ALL THE LIABILITIES SPECIFIED IN
PARAGRAPH (2) OF THIS SECTION.

(2)   THE LIABILITIES OF THE PARTNERSHIP SHALL RANK
IN ORDER OF PAYMENT, AS FOLLOWS:

(I)     THOSE OWING TO CREDITORS OTHER THAN PARTNERS;

(II)     THOSE OWING TO PARTNERS OTHER THAN FOR
CAPITAL AND PROFITS;

(III)     THOSE OWING TO PARTNERS IN RESPECT OF
CAPITAL; AND

(IV)     THOSE OWING TO PARTNERS IN RESPECT OF
PROFITS.

(3)    THE ASSETS SHALL BE APPLIED IN THE ORDER OF
THEIR DECLARATION IN PARAGRAPH (1) OF THIS SECTION TO
THE SATISFACTION OF THE LIABILITIES.

(4) THE PARTNERS SHALL CONTRIBUTE, AS PROVIDED BY
§9-401 (1), THE AMOUNT NECESSARY TO SATISFY THE
LIABILITIES; BUT IF ANY, BUT NOT ALL, OF THE PARTNERS ARE
INSOLVENT, OR, NOT BEING SUBJECT TO PROCESS, REFUSE TO
CONTRIBUTE, THE OTHER PARTNERS SHALL CONTRIBUTE THEIR
SHARE OF THE LIABILITIES, AND, IN THE RELATIVE
PROPORTIONS IN WHICH THEY SHARE THE PROFITS, THE