PARRIS N. GLENDENING, Governor

Ch. 654

(1)     EACH PARTNER IS AN AGENT OF THE PARTNERSHIP FOR THE
PURPOSE OF ITS BUSINESS. AN ACT OF A PARTNER, INCLUDING THE EXECUTION OF
AN INSTRUMENT IN THE PARTNERSHIP NAME, FOR APPARENTLY CARRYING ON IN
THE ORDINARY COURSE THE PARTNERSHIP BUSINESS OR BUSINESS OF THE KIND
CARRIED ON BY THE PARTNERSHIP BINDS THE PARTNERSHIP, UNLESS THE
PARTNER HAD NO AUTHORITY TO ACT FOR THE PARTNERSHIP IN THE PARTICULAR
MATTER AND THE PERSON WITH WHOM THE PARTNER WAS DEALING KNEW OR HAD
RECEIVED A NOTIFICATION THAT THE PARTNER LACKED AUTHORITY.

(2)     AN ACT OF A PARTNER WHICH IS NOT APPARENTLY FOR CARRYING
ON IN THE ORDINARY COURSE THE PARTNERSHIP BUSINESS OR BUSINESS OF THE
KIND CARRIED ON BY THE PARTNERSHIP BINDS THE PARTNERSHIP ONLY IF THE
ACT WAS AUTHORIZED BY THE OTHER PARTNERS.

9-302. TRANSFER OF PARTNERSHIP PROPERTY.

(A)    PARTNERSHIP PROPERTY MAY BE TRANSFERRED AS FOLLOWS:

(1)     SUBJECT TO THE EFFECT OF A STATEMENT OF PARTNERSHIP
AUTHORITY UNDER § 9-303 OF THIS SUBTITLE, PARTNERSHIP PROPERTY HELD IN
THE NAME OF THE PARTNERSHIP MAY BE TRANSFERRED BY AN INSTRUMENT OF
TRANSFER EXECUTED BY A PARTNER IN THE PARTNERSHIP NAME.

(2)     PARTNERSHIP PROPERTY HELD IN THE NAME OF ONE OR MORE
PARTNERS WITH AN INDICATION IN THE INSTRUMENT TRANSFERRING THE
PROPERTY TO THEM OF THEIR CAPACITY AS PARTNERS OR OF THE EXISTENCE OF A
PARTNERSHIP, BUT WITHOUT AN INDICATION OF THE NAME OF THE PARTNERSHIP,
MAY BE TRANSFERRED BY AN INSTRUMENT OF TRANSFER EXECUTED BY THE
PERSONS IN WHOSE NAME THE PROPERTY IS HELD.

(3)     PARTNERSHIP PROPERTY HELD IN THE NAME OF ONE OR MORE
PERSONS OTHER THAN THE PARTNERSHIP, WITHOUT AN INDICATION IN THE
INSTRUMENT TRANSFERRING THE PROPERTY TO THEM OF THEIR CAPACITY AS
PARTNERS OR OF THE EXISTENCE OF A PARTNERSHIP, MAY BE TRANSFERRED BY
AN INSTRUMENT OF TRANSFER EXECUTED BY THE PERSONS IN WHOSE NAME THE
PROPERTY IS HELD.

(B)     A PARTNERSHIP MAY RECOVER PARTNERSHIP PROPERTY FROM A
TRANSFEREE ONLY IF IT PROVES THAT EXECUTION OF THE INSTRUMENT OF
INITIAL TRANSFER DID NOT BIND THE PARTNERSHIP UNDER § 9-301 OF THIS
SUBTITLE AND:

(1)     AS TO A SUBSEQUENT TRANSFEREE WHO GAVE VALUE FOR
PROPERTY TRANSFERRED UNDER SUBSECTION (A)(1) OR (2), PROVES THAT THE
SUBSEQUENT TRANSFEREE KNEW OR HAD RECEIVED A NOTIFICATION THAT THE
PERSON WHO EXECUTED THE INSTRUMENT OF INITIAL TRANSFER LACKED
AUTHORITY TO BIND THE PARTNERSHIP; OR

(2)     AS TO A TRANSFEREE WHO GAVE VALUE FOR PROPERTY
TRANSFERRED UNDER SUBSECTION (A)(3), PROVES THAT THE TRANSFEREE KNEW
OR HAD RECEIVED A NOTIFICATION THAT THE PROPERTY WAS PARTNERSHIP

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