North Carolina General Statutes 59-804. Distribution of assets
Upon the winding up of a limited partnership, the assets shall be distributed as follows:
(1) To creditors, including limited partners who are creditors, to the extent otherwise permitted by law, in satisfaction of liabilities of the limited partnership other than liabilities for distributions to partners under N.C. Gen. Stat. § 59-601 or N.C. Gen. Stat. § 59-604;
(2) To general partners who are creditors to the extent otherwise permitted by law, in satisfaction of liabilities of the limited partnership other than liabilities for distributions to partners under N.C. Gen. Stat. § 59-601 or N.C. Gen. Stat. § 59-604;
(3) Except as provided in the partnership agreement, to partners and former partners in satisfaction of liabilities for distributions under N.C. Gen. Stat. § 59-601 or N.C. Gen. Stat. § 59-604; and
(4) Except as provided in the partnership agreement, to partners first for the return of their contributions and secondly respecting their partnership interests, in the proportions in which the partners share in distributions. (1985 (Reg. Sess., 1986), c. 989, s. 2.)
Terms Used In North Carolina General Statutes 59-804
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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.
- partnership agreement: includes any written or oral agreement, whether or not the agreement is set forth in a document referred to by the partners as a "partnership agreement" and includes any amendment agreed upon by the partners unanimously or in accordance with the terms of the agreement. See North Carolina General Statutes 59-102