PARRIS N. GLENDENING, Governor

Ch. 659

Section 4A-503, 4A-504, 4A-904, and 4A-905

Annotated Code of Maryland

(1993 Replacement Volume and 1996 Supplement)

BY repealing and reenacting, without amendments,
Article - Corporations and Associations
Section 10-101(a)
Annotated Code of Maryland
(1993 Replacement Volume and 1996 Supplement)

BY renumbering

Article - Corporations and Associations

Section 4A-505, 4A-506, 4A-507, and 4A-906 through 4A-922, respectively

to be Section 4A-503, 4A-504, 4A-505, and 4A-904 through 4A-920, respectively

Annotated Code of Maryland

(1993 Replacement Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

15-208.

(A)     Every conveyance of partnership property and every partnership obligation
incurred when the partnership is or will be rendered insolvent by it, is fraudulent as to
partnership creditors, if the conveyance is made or the obligation is incurred to:

(1)     A partner, whether with or without a promise by him to pay partnership
debts, UNLESS THE CONVEYANCE OR OBLIGATION REPRESENTS FAIR AND
REASONABLE COMPENSATION FOR SERVICES PROVIDED OR TO BE PROVIDED BY
THE PARTNER TO THE PARTNERSHIP AND THE SERVICES ARE PROVIDED OR WILL
BE PROVIDED WITHIN 120 DAYS BEFORE OR AFTER THE DATE THE CONVEYANCE IS
MADE OR THE OBLIGATION IS INCURRED; or

(2)     A person not a partner, without fair consideration to the partnership as
distinguished from consideration to the individual partners.

(B)     EVERY CONVEYANCE OF LIMITED LIABILITY COMPANY PROPERTY AND
EVERY LIMITED LIABILITY COMPANY OBLIGATION INCURRED WHEN THE LIMITED
LIABILITY COMPANY IS OR WILL BE RENDERED INSOLVENT BY IT, IS FRAUDULENT
AS TO CREDITORS OF THE LIMITED LIABILITY COMPANY, IF THE CONVEYANCE IS
MADE OR THE OBLIGATION IS INCURRED TO:

(1) A MEMBER, WHETHER WITH OR WITHOUT A PROMISE BY HIM TO
PAY THE LIMITED LIABILITY COMPANY'S DEBTS, UNLESS THE CONVEYANCE OR
OBLIGATION REPRESENTS FAIR AND REASONABLE COMPENSATION FOR SERVICES
PROVIDED OR TO BE PROVIDED BY THE MEMBER TO THE LIMITED LIABILITY

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