362.1 -703 Dissociated partner's liability to other persons. (1) A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation incurred before dissociation. A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provi ded in subsection (2) of this section. (2) A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving pa rtnership under KRS 362.1 -901 to 362.1 - 908, within two (2) years after the partner's dissociation, only if the partner is liable for the obligation under KRS 362.1 -306 and at the time of entering into the transaction the other party: (a) Reasonably believe d that the dissociated partner was then a partner; (b) Did not have notice of the partner's dissociation; and (c) Is not deemed to have knowledge under KRS 362.1 -303(5) or notice under KRS 362.1 -704(3). (3) By agreement with the partnership creditor and th e partners continuing the business, a dissociated partner may be released from liability for a S 362.1 -303(5) or notice under KRS 362.1 -704(3). (3) By agreement with the partnership creditor and th e partners continuing the business, a dissociated partner may be released from liability for a partnership obligation. (4) A dissociated partner is released from liability for a partnership obligation if a partnership creditor, with notice of the partner's dissociation but without the partner's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation. Effective: July 12, 2006 History: Created 2006 Ky. Acts ch. 149, sec. 51, effective July 12, 2006.
Kentucky Legal Code