7-12.1-303. Statement of partnership authority.
(a) A partnership may deliver to the secretary of state for filing a statement of partnership
authority. The statement:
(1) Must include the name of the partnership and:
(i) If the partnership is not a limited liability partnership, the street and mailing
addresses of its principal office; or
(ii) If the partnership is a limited liability partnership, the name and street and mailing
addresses of its registered agent;
(2) With respect to any position that exists in or with respect to the partnership, may
state the authority, or limitations on the authority, of all persons holding the position
to:
(i) Sign an instrument transferring real property held in the name of the partnership;
or
(ii) Enter into other transactions on behalf of, or otherwise act for or bind, the partnership;
and
(3) May state the authority, or limitations on the authority, of a specific person to:
(i) Sign an instrument transferring real property held in the name of the partnership;
or
(ii) Enter into other transactions on behalf of, or otherwise act for or bind, the partnership.
(b) To amend or cancel a statement of authority filed by the secretary of state, a partnership
must deliver to the secretary of state for filing an amendment or cancellation stating:
(1) The name of the partnership;
(2) If the partnership is not a limited liability partnership, the street and mailing
addresses of the partnership’s principal office;
(3) If the partnership is a limited liability partnership, the name and street and mailing
addresses of its registered agent;
(4) The date the statement being affected became effective; and
(5) The contents of the amendment or a declaration that the statement is canceled.
(c) A statement of authority affects only the power of a person to bind a partnership
to persons that are not partners.
(d) Subject to subsection (c) of this section and § 7-12.1-103(d)(1), and except as otherwise provided in subsections (f), (g), and (h) of this section,
a limitation on the authority of a person or a position contained in an effective
statement of authority is not by itself evidence of any person’s knowledge or notice
of the limitation.
(e) Subject to subsection (c) of this section, a grant of authority not pertaining to
transfers of real property and contained in an effective statement of authority is
conclusive in favor of a person that gives value in reliance on the grant, except
to the extent that if the person gives value:
(1) The person has knowledge to the contrary;
(2) The statement has been canceled or restrictively amended under subsection (b) of this
section; or
(3) A limitation on the grant is contained in another statement of authority that became
effective after the statement containing the grant became effective.
(f) Subject to subsection (c) of this section, an effective statement of authority that
grants authority to transfer real property held in the name of the partnership, a
certified copy of which statement is recorded in the office for recording transfers
of the real property, is conclusive in favor of a person that gives value in reliance
on the grant without knowledge to the contrary, except to the extent that when the
person gives value:
(1) The statement has been canceled or restrictively amended under subsection (b) of this
section, and a certified copy of the cancellation or restrictive amendment has been
recorded in the office for recording transfers of the real property; or
(2) A limitation on the grant is contained in another statement of authority that became
effective after the statement containing the grant became effective, and a certified
copy of the later-effective statement is recorded in the office for recording transfers
of the real property.
(g) Subject to subsection (c) of this section, if a certified copy of an effective statement
containing a limitation on the authority to transfer real property held in the name
of a partnership is recorded in the office for recording transfers of that real property,
all persons are deemed to know of the limitation.
(h) Subject to subsection (i) of this section, an effective statement of dissolution is
a cancellation of any filed statement of authority for the purposes of subsection
(f) of this section and is a limitation on authority for purposes of subsection (g)
of this section.
(i) After a statement of dissolution becomes effective, a partnership may deliver to the
secretary of state for filing and, if appropriate, may record a statement of authority
that is designated as a post-dissolution statement of authority. The statement operates
as provided in subsections (f) and (g) of this section.
(j) Unless canceled earlier, an effective statement of authority is canceled by operation
of law five (5) years after the date on which the statement, or its most recent amendment,
becomes effective. The cancellation is effective without recording under subsection
(f) or (g) of this section.
(k) An effective statement of denial operates as a restrictive amendment under this section
and may be recorded by certified copy for purposes of subsection (f)(1) of this section.
P.L. 2022, ch. 123, § 2, effective January 1, 2023; P.L. 2022, ch. 124, § 2, effective
January 1, 2023.
