KRS 362.1-807: Settlement of accounts and contributions among partners.

(1) In winding up a partnership's business, the assets of the partnership, including the

contributions of the partners required by this section, shall be applied to discharge

its obligations to creditors, including, to the extent permitted by law, partners who

are creditors. Any surplus shall be applied to pay the net amount distributable to

partners in accordance with their right to distributions under subsection (2) of this

section.

(2) 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 shall 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 KRS 362.1-306.

(3) If a partner fails to contribute the full amount required under subsection (2) of this

section, then all of the other partners sha ll 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 KRS 362.1 -

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 KRS 362.1-306.

(4) After the settleme nt 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 KRS 362.1-306.

(5) The estate of a deceased partner is liable for the partner's obligation to contribute to

the partnership.

(6) 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.