(805 ILCS 206/807)
Sec. 807.
Settlement of accounts
and contributions among partners.
(a) In winding up a partnership's business, the assets of the partnership,
including the
contributions of the partners required by this Section, must be applied to
discharge its obligations
to creditors, including, to the extent permitted by law, partners who are
creditors. Any surplus
must be applied to pay in cash the net amount distributable to partners in
accordance with their
right to distributions under subsection (b) of this Section.
(b) Each partner is entitled to a settlement of all partnership accounts
upon winding up the
partnership business. In settling accounts among the partners, profits and
losses that result from
the liquidation of the partnership assets must be credited and charged to the
partners' accounts.
The partnership shall make a distribution to a partner in an amount equal to
any excess of the
credits over the charges in the partner's account. A partner shall contribute
to the partnership an
amount equal to any excess of the charges over the credits in the partner's
account but excluding
from the calculation charges attributable to an obligation for which the
partner is not personally
liable under Section 306 of this Act.
(c) If a partner fails to contribute the full amount required under
subsection (b) of this Section,
all of the other partners shall contribute, in the proportions in which those
partners share
partnership losses, the additional amount necessary to satisfy the partnership
obligations for which
they are personally
liable under Section 306. A partner or partner's legal representative may
recover from the other
partners any contributions the partner makes to the extent the amount
contributed exceeds that
partner's share of the partnership obligations for which the partner is
personally liable under
Section 306.
(d) After the settlement of accounts, each partner shall contribute, in the
proportion in which
the partner shares partnership losses, the amount necessary to satisfy
partnership obligations that
were not known at the time of the settlement and for which the partner is
personally liable under
Section 306.
(e) The estate of a deceased partner is liable for the partner's obligation
to contribute to the
partnership.
(f) An assignee for the benefit of creditors of a partnership or a partner,
or a person appointed
by a court to represent creditors of a partnership or a partner, may enforce a
partner's obligation
to contribute to the partnership.
(Source: P.A. 92-740, eff. 1-1-03.)
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