1. A limited partnership may not make a distribution in violation of the partnership agreement.
2. A limited partnership may not make a distribution if after the distribution:
(a) The limited partnership would not be able to pay its debts as they become due in the ordinary course of the limited partnership’s activities; or
(b) The limited partnership’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the limited partnership were to be dissolved, wound up and terminated at the time of the distribution, to satisfy the preferential rights upon dissolution, winding up and termination of partners whose preferential rights are superior to those of persons receiving the distribution.
3. A limited partnership may base a determination that a distribution is not prohibited under subsection 2 on financial statements prepared on the basis of accounting practices and principles that are reasonable in the circumstances or on a fair valuation or other method that is reasonable in the circumstances.
4. Except as otherwise provided in subsection 7, the effect of a distribution under subsection 2 is measured:
(a) In the case of distribution by purchase, redemption or other acquisition of a transferable interest in the limited partnership, as of the date money or other property is transferred or debt incurred by the limited partnership; and
(b) In all other cases, as of the date:
(1) The distribution is authorized, if the payment occurs within 120 days after that date; or
(2) The payment is made, if payment occurs more than 120 days after the distribution is authorized.
5. A limited partnership’s indebtedness to a partner incurred by reason of a distribution made in accordance with this section is at parity with the limited partnership’s indebtedness to its general, unsecured creditors.
6. A limited partnership’s indebtedness, including indebtedness issued in connection with or as part of a distribution, is not considered a liability for purposes of subsection 2 if the terms of the indebtedness provide that payment of principal and interest are made only to the extent that a distribution could then be made to partners under this section.
7. If indebtedness is issued as a distribution, each payment of principal or interest on the indebtedness is treated as a distribution, the effect of which is measured on the date the payment is made.
(Added to NRS by 2007, 461)
Structure Nevada Revised Statutes
Chapter 87A - Uniform Limited Partnership Act (2001)
NRS 87A.015 - "Certificate of limited partnership" defined.
NRS 87A.020 - "Contribution" defined.
NRS 87A.025 - "Debtor in bankruptcy" defined.
NRS 87A.030 - "Designated office" defined.
NRS 87A.035 - "Distribution" defined.
NRS 87A.040 - "Foreign limited partnership" defined.
NRS 87A.045 - "Foreign registered limited-liability limited partnership" defined.
NRS 87A.050 - "General partner" defined.
NRS 87A.055 - "Limited partner" defined.
NRS 87A.060 - "Limited partnership" defined.
NRS 87A.065 - "Partner" defined.
NRS 87A.070 - "Partnership agreement" defined.
NRS 87A.075 - "Person" defined.
NRS 87A.080 - "Person withdrawn as a general partner" defined.
NRS 87A.085 - "Principal office" defined.
NRS 87A.095 - "Registered agent" defined.
NRS 87A.100 - "Registered limited-liability limited partnership" defined.
NRS 87A.105 - "Required information" defined.
NRS 87A.108 - "Restricted limited partnership" defined.
NRS 87A.120 - "State" defined.
NRS 87A.130 - "Transfer" defined.
NRS 87A.135 - "Transferable interest" defined.
NRS 87A.140 - "Transferee" defined.
NRS 87A.150 - Knowledge and notice.
NRS 87A.170 - Supplemental principles of law; rate of interest.
NRS 87A.180 - Name of partnership: Reservation; transfer of right to exclusive use of reserved name.
NRS 87A.185 - Name of partnership: Reinstatement or revival under old or new name; regulations.
NRS 87A.190 - Effect of partnership agreement; nonwaivable provisions.
NRS 87A.205 - Business transactions of partner with partnership.
NRS 87A.220 - Registered agent: Revocation of appointment; change of name.
NRS 87A.230 - Consent and proxies of partners.
NRS 87A.235 - Formation of limited partnership; certificate of limited partnership.
NRS 87A.240 - Amendment or restatement of certificate.
NRS 87A.245 - Statement of termination.
NRS 87A.250 - Signing of records.
NRS 87A.255 - Signing and filing pursuant to judicial order.
NRS 87A.260 - Form required for filing of records.
NRS 87A.270 - Filing of records written in language other than English.
NRS 87A.280 - Partnership records: Microfilming; imaging; return.
NRS 87A.285 - Liability for false information in filed record.
NRS 87A.290 - Annual list: Filing requirements; fees; notice; regulations.
NRS 87A.295 - Additional filing requirements for certain partnerships: Criteria; statement; fees.
NRS 87A.310 - Defaulting partnerships: Conditions and procedure for reinstatement.
NRS 87A.320 - Becoming limited partner.
NRS 87A.325 - No right or power as limited partner to bind limited partnership.
NRS 87A.330 - No liability as limited partner for limited partnership obligations.
NRS 87A.335 - Right of limited partner and former limited partner to information.
NRS 87A.340 - Limited duties of limited partners.
NRS 87A.345 - Person erroneously believing self to be limited partner.
NRS 87A.350 - Becoming general partner.
NRS 87A.355 - General partner agent of limited partnership.
NRS 87A.360 - Limited partnership liable for actionable conduct of general partner.
NRS 87A.365 - Liability of general partner.
NRS 87A.370 - Actions by and against partnership and partners.
NRS 87A.375 - Management rights of general partner.
NRS 87A.380 - Right of general partner and former general partner to information.
NRS 87A.385 - General standards of conduct of general partner.
NRS 87A.390 - Form of contribution.
NRS 87A.395 - Liability for contribution.
NRS 87A.400 - Sharing of distributions.
NRS 87A.405 - Interim distributions.
NRS 87A.410 - No distribution on account of withdrawal.
NRS 87A.415 - Distribution in kind.
NRS 87A.420 - Right to distribution.
NRS 87A.425 - Limitations on distribution.
NRS 87A.427 - Limitations on distributions applicable to restricted limited partnerships.
NRS 87A.430 - Liability for improper distributions.
NRS 87A.435 - Withdrawal as limited partner.
NRS 87A.440 - Effect of withdrawal as limited partner.
NRS 87A.445 - Withdrawal as general partner.
NRS 87A.450 - Power of person to withdraw as general partner; wrongful withdrawal.
NRS 87A.455 - Effect of withdrawal as general partner.
NRS 87A.465 - Liability to other persons of person withdrawn as general partner.
NRS 87A.470 - Transferable interest of partner.
NRS 87A.475 - Transfer of transferable interest of partner.
NRS 87A.480 - Rights and remedies of creditor of partner.
NRS 87A.485 - Power of estate of deceased partner.
NRS 87A.490 - Nonjudicial dissolution.
NRS 87A.495 - Judicial dissolution.
NRS 87A.515 - Known claims against dissolved limited partnership.
NRS 87A.520 - Other claims against dissolved limited partnership.
NRS 87A.530 - Disposition of assets; when contributions are required.
NRS 87A.545 - Issuance of certificate of registration by Secretary of State.
NRS 87A.550 - Registration of name.
NRS 87A.555 - Amendments to application for registration.
NRS 87A.565 - Additional filing requirements for certain partnerships: Criteria; statement; fees.
NRS 87A.570 - Certificate of authorization to transact business.
NRS 87A.575 - Addresses of general partners required; failure to file.
NRS 87A.590 - Defaulting partnerships: Duties of Secretary of State.
NRS 87A.595 - Defaulting partnerships: Conditions and procedure for reinstatement.
NRS 87A.600 - Defaulting partnerships: Reinstatement or revival under old or new name; regulations.
NRS 87A.602 - Cancellation of registration without additional fees and penalties; regulations.
NRS 87A.605 - Cancellation of registration.
NRS 87A.610 - Penalty for transacting business without registration; enforcement; regulations.
NRS 87A.615 - Activities not constituting transaction of business.
NRS 87A.620 - Determination of whether solicitation is made or accepted.
NRS 87A.625 - Action by Attorney General to restrain transaction of business.
NRS 87A.645 - Termination of registration.
NRS 87A.655 - Name of foreign partnership.
NRS 87A.660 - Direct action by partner.
NRS 87A.665 - Derivative action.
NRS 87A.670 - Proper plaintiff.
NRS 87A.680 - Proceeds and expenses.
NRS 87A.685 - Uniformity of application and construction.
NRS 87A.690 - Relation to Electronic Signatures in Global and National Commerce Act.
NRS 87A.695 - Provisions for existing partnerships.
NRS 87A.700 - Operation of domestic partnership in another jurisdiction.