New York Laws
Article 8-A - Revised Limited Partnership Act
121-1003 - Security for Expenses.

§ 121-1003. Security for expenses. In a derivative action, brought
pursuant to section 121-1002 of this article, unless the contributions
of or allocable to the plaintiff or plaintiffs amount to five percent or
more of the contributions of all limited partners, in their status as
limited partners, or such contributions of or allocable to such
plaintiff or plaintiffs have a fair value in excess of fifty thousand
dollars, the limited partnership in whose right such action is brought
shall be entitled at any stage of the proceedings before final judgment
to require the plaintiff or plaintiffs to give security for the
reasonable expenses, including attorney's fees, which may be incurred by
it in connection with such action and by the other parties defendant in
connection therewith for which the limited partnership may become liable
under this article or under any contract or otherwise under law. The
limited partnership shall have recourse to such security in such amount
as the court having jurisdiction of such action shall determine upon the
termination of such action. Notwithstanding the first sentence of this
section, the amount of any security may from time to time be determined
in the discretion of the court having jurisdiction of such action, even
if the five percent of contributions or fifty thousand dollar value test
is met, upon a showing of the need therefor.

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