KRS 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

provided 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 believed 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 the 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.