59-70. Rules for distribution.
In settling accounts between the partners after dissolution, the following rules shall be observed, subject to any agreement to the contrary:
(1) The assets of the partnership are
a. The partnership property,
b. The contributions of the partners necessary for the payment of all the liabilities specified in subdivision (2) of this section.
(2) The liabilities of the partnership shall rank in order of payment, as follows:
a. Those owing to creditors other than partners,
b. Those owing to partners other than for capital and profits,
c. Those owing to partners in respect of capital,
d. Those owing to partners in respect of profits.
(3) The assets shall be applied in the order of their declaration in subdivision (1) of this section to the satisfaction of the liabilities.
(4) The partners shall contribute, as provided by G.S. 59-48, subdivision (1) the amount necessary to satisfy the liabilities; but if any, but not all, of the partners are insolvent, or, not being subject to process, refuse to contribute, the other partners shall contribute their share of the liabilities, and, in the relative proportions in which they share the profits, the additional amount necessary to pay the liabilities.
(5) An assignee for the benefit of creditors or any person appointed by the court shall have the right to enforce the contributions specified in subdivision (4) of this section.
(6) Any partner or his legal representative shall have the right to enforce the contributions specified in subdivision (4) of this section, to the extent of the amount which he has paid in excess of his share of the liability.
(7) The individual property of a deceased partner shall be liable for the contributions specified in subdivision (4) of this section.
(8) When partnership property and the individual properties of the partners are in possession of a court for distribution, partnership creditors shall have priority on partnership property and separate creditors on individual property, saving the rights of lien or secured creditors as heretofore.
(9) Where a partner has become bankrupt or his estate is insolvent the claims against the separate property shall rank in the following order:
a. Those owing to separate creditors,
b. Those owing to partnership creditors,
c. Those owing to partners by way of contribution. (1941, c. 374, s. 40.)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 2 - Uniform Partnership Act.
§ 59-31 - North Carolina Uniform Partnership Act.
§ 59-32 - Definition of terms.
§ 59-33 - Interpretation of knowledge and notice.
§ 59-34 - Rules of construction.
§ 59-35 - Rules for cases not provided for in this Act.
§ 59-35.1 - Filing of documents.
§ 59-35.2 - Filing, service, and copying fees.
§ 59-36 - Partnership defined.
§ 59-37 - Rules for determining the existence of a partnership.
§ 59-38 - Partnership property.
§ 59-39 - Partner agent of partnership as to partnership business.
§ 59-39.1 - Act, admission or acknowledgment by partner.
§ 59-40 - Conveyance of real property of the partnership.
§ 59-41 - Partnership bound by admission of partner.
§ 59-42 - Partnership charged with knowledge of or notice to partner.
§ 59-43 - Partnership bound by partner's wrongful act.
§ 59-44 - Partnership bound by partner's breach of trust.
§ 59-46 - Partner by estoppel.
§ 59-47 - Liability of incoming partner.
§ 59-48 - Rules determining rights and duties of partners.
§ 59-50 - Duty of partners to render information.
§ 59-51 - Partner accountable as a fiduciary.
§ 59-52 - Right to an account.
§ 59-53 - Continuation of partnership beyond fixed term.
§ 59-54 - Extent of property rights of a partner.
§ 59-55 - Nature of a partner's right in specific partnership property.
§ 59-56 - Nature of partner's interest in the partnership.
§ 59-57 - Assignment of partner's interest.
§ 59-58 - Partner's interest subject to charging order.
§ 59-59 - Dissolution defined.
§ 59-60 - Partnership not terminated by dissolution.
§ 59-61 - Causes of dissolution.
§ 59-62 - Dissolution by decree of court.
§ 59-63 - General effect of dissolution on authority of partner.
§ 59-64 - Right of partner to contribution from copartners after dissolution.
§ 59-66 - Effect of dissolution on partner's existing liability.
§ 59-68 - Rights of partners to application of partnership property.
§ 59-69 - Rights where partnership is dissolved for fraud or misrepresentation.
§ 59-70 - Rules for distribution.
§ 59-71 - Liability of persons continuing the business in certain cases.
§ 59-72 - Rights of retiring partner or estate of deceased partner when the business is continued.