If a partner becomes entitled to receive a distribution, the partner has the status of, and is entitled to all remedies available to, a creditor of the limited partnership with respect to the distribution. However, the limited partnership's obligation to make a distribution is subject to offset for any amount owed to the limited partnership by the partner or dissociated partner on whose account the distribution is made.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 9A - Alabama Limited Partnership Law.
Article 5 - Contributions and Distributions.
Section 10A-9A-5.01 - Form of Contribution.
Section 10A-9A-5.02 - Liability for Contribution.
Section 10A-9A-5.03 - Sharing of Distributions Before Dissolution.
Section 10A-9A-5.04 - Interim Distributions.
Section 10A-9A-5.05 - No Distribution on Account of Dissociation.
Section 10A-9A-5.06 - Distribution in Kind.
Section 10A-9A-5.07 - Right to Distribution.
Section 10A-9A-5.08 - Limitations on Distribution and Liability for Improper Distributions.