In settling accounts between the partners after dissolution the following rules must be observed, subject to any agreement to the contrary:
(1) the assets of the partnership are:
(a) the partnership property and
(b) the contributions of the partners specified in item (4);
(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, and
(d) those owing to partners in respect of profits;
(3) the assets must be applied in the order of their declaration in item (1) to the satisfaction of the liabilities;
(4) except as provided in Section 33-41-370(B):
(a) the partners shall contribute, as provided by Section 33-41-510, the amount necessary to satisfy the liabilities; and
(b) 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 item (4);
(6) any partner or his legal representative shall have the right to enforce the contributions specified in item (4) 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 must be liable for the contributions specified in item (4);
(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 provided by law; and
(9) when a partner has become bankrupt or his estate is insolvent the claims against his separate property must rank in the following order:
(a) those owing to separate creditors,
(b) those owing to partnership creditors, and
(c) those owing to partners by way of contribution.
HISTORY: 1962 Code Section 52-76; 1952 Code Section 52-76; 1950 (46) 1841; 1994 Act No. 448, Section 9.
Structure South Carolina Code of Laws
Title 33 - Corporations, Partnerships and Associations
Chapter 41 - Uniform Partnership Act
Section 33-41-10. Short title.
Section 33-41-20. Definitions.
Section 33-41-30. What constitutes "knowledge" or "notice" of a fact.
Section 33-41-40. Rules of construction; applicable rules of law; existing rights are not affected.
Section 33-41-50. Rules for cases not provided for.
Section 33-41-210. "Partnership" defined; application to limited partnerships.
Section 33-41-220. Determining existence of partnership.
Section 33-41-230. Partnership property; acquisition and conveyance.
Section 33-41-310. Partner's acts and agency; limitation of authority.
Section 33-41-320. Conveyances of real property of partnership.
Section 33-41-330. Admission or representation by partner as evidence.
Section 33-41-340. Notice to or knowledge of partner.
Section 33-41-350. Liability for wrongful act or omission of partner.
Section 33-41-360. Partnership is bound by partner's breach of trust.
Section 33-41-370. Nature of partners' liability.
Section 33-41-380. Liability as partner by estoppel.
Section 33-41-390. Liability of incoming partner.
Section 33-41-510. Rules determining rights and duties of partners as to partnership.
Section 33-41-520. Partnership books.
Section 33-41-530. Duty of partners to give information.
Section 33-41-540. Partner is accountable as a fiduciary.
Section 33-41-550. Right to formal accounting.
Section 33-41-560. Continuation of partnership beyond fixed term or particular undertaking.
Section 33-41-710. Extent of property rights.
Section 33-41-720. Nature of right in specific partnership property.
Section 33-41-730. Nature of partner's interest in partnership.
Section 33-41-740. Effect of assignment of partner's interest in partnership.
Section 33-41-910. "Dissolution" defined.
Section 33-41-920. Partnership is not terminated by dissolution.
Section 33-41-930. Causes of dissolution.
Section 33-41-940. Dissolution by decree of court.
Section 33-41-950. Effect of dissolution on partner's authority to act.
Section 33-41-960. Liability of partner for acts of other partner upon dissolution.
Section 33-41-970. Power of partner to bind partnership after dissolution.
Section 33-41-980. Satisfying certain liability of partner.
Section 33-41-990. When partnership is not bound by partner after dissolution.
Section 33-41-1000. Liability under Section 33-41-380 not affected.
Section 33-41-1010. Effect of dissolution on existing liability of partner.
Section 33-41-1020. Right to wind up partnership affairs.
Section 33-41-1030. Application of property upon dissolution not in contravention of agreement.
Section 33-41-1040. Rights of partners upon dissolution in contravention of agreement.
Section 33-41-1050. Rights when partnership agreement is rescinded for fraud or misrepresentation.
Section 33-41-1060. Settlement of accounts between partners; rules for distribution.
Section 33-41-1070. Liability of persons continuing business in certain cases.
Section 33-41-1090. Accrual of right to an account.
Section 33-41-1130. Liability insurance.
Section 33-41-1140. Powers granted to limited liability partnership.
Section 33-41-1180. Application for certificate, articles of amendment, amended certificate.
Section 33-41-1190. Foreign limited liability partnership; cancellation of registration.
Section 33-41-1200. Effect of failure of foreign limited liability partnership to register.
Section 33-41-1220. Powers of General Assembly as to regulations, amendment or repeal of statute.
Section 33-41-1320. Effect of merger; service of process; liability for partnership obligations.