Liability for improper distributions.
R.I. Gen. Laws § 7-13.1-505
in effect7-13.1-505. Liability for improper distributions.
(a) If a general partner consents to a distribution made in violation of § 7-13.1-504 and in consenting to the distribution fails to comply with § 7-13.1-409, the general partner is personally liable to the limited partnership for the amount
of the distribution which exceeds the amount that could have been distributed without
the violation of § 7-13.1-504.
(b) A person that receives a distribution knowing that the distribution violated § 7-13.1-504 is personally liable to the limited partnership but only to the extent that the distribution
received by the person exceeded the amount that could have been properly paid under
§ 7-13.1-504.
(c) A general partner against which an action is commenced because the general partner
is liable under subsection (a) of this section may:
(1) Implead any other person that is liable under subsection (a) of this section and seek
to enforce a right of contribution from the person; and
(2) Implead any person that received a distribution in violation of subsection (b) of
this section and seek to enforce a right of contribution from the person in the amount
the person received in violation of subsection (b) of this section.
(d) An action under this section is barred unless commenced not later than two (2) years
after the distribution.
P.L. 2022, ch. 121, § 2, effective January 1, 2023; P.L. 2022, ch. 122, § 2, effective
January 1, 2023.
Source: State of Rhode Island General Assembly (rilegislature.gov)URL: https://webserver.rilegislature.gov/Statutes/TITLE7/7-13.1/7-5/7-13.1-505.htmFetched: 10/20/2026