(a) Upon a person’s dissociation as a limited partner:
         (1) subject to Section 704, the person does not have
    
further rights as a limited partner;
        (2) the person’s obligation of good faith and fair
    
dealing as a limited partner under Section 305(b) continues only as to matters arising and events occurring before the dissociation; and
        (3) subject to Section 704 and Article 11, any
    
transferable interest owned by the person in the person’s capacity as a limited partner immediately before dissociation is owned by the person as a mere transferee.
    (b) A person’s dissociation as a limited partner does not of itself discharge the person from any obligation to the limited partnership or the other partners which the person incurred while a limited partner.

Terms Used In Illinois Compiled Statutes 805 ILCS 215/602

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
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