KRS 362.2-961: Liability of general partner after conversion or merger.

(1) A conversion or merger under KRS 362.2 -951 to 362.2-963 does not discharge any

liability under KRS 362.2-404 and 362.2-607 of a person that was a general partner

in or dissociated as a general partner from a converting or constituent limited

partnership, but:

(a) The provisions of this subchapter pertaining to the collection or discharge of

that liability continue to apply to that liability;

(b) For the purposes of applying those provisions, the converted or surviving

organization is deemed to be the converting or constituent limited partnership;

and

(c) If a person is required to pay any amount under this subsection, then:

1. The person has a right of contribution from each other person that was

liable as a general partner under KRS 362.2 -404 when the oblig ation

was incurred and has not been released from that obligation under KRS

362.2-607; and

2. The contribution due from each of those persons is in proportion to the

right to receive distributions in the capacity of general partner in effect

for each of those persons when the obligation was incurred.

(2) In addition to any other liability provided by law:

(a) A person who immediately before a conversion or merger became effective

was a general partner in a converting or constituent limited partnership that

was not a limited liability limited partnership is personally liable for each

obligation of the converted or surviving organization arising from a

transaction with a third party after the conversion or merger becomes effective

if, at the time the third party enters into the transaction, the third party;

1. Does not have notice of the conversion or merger; and

2. Reasonably believes that:

a. The converted or surviving business is the converting or

constituent limited partnership;

b. The converting or constit uent limited partnership is not a limited

liability limited partnership; and

c. The person is a general partner in the converting or constituent

limited partnership; and

(b) A person who was dissociated as a general partner from a converting or

constituent limited partnership before the conversion or merger became

effective is personally liable for each obligation of the converted or surviving

organization arising from a trans action with a third party after the conversion

or merger becomes effective if:

1. Immediately before the conversion or merger became effective, the

converting or surviving limited partnership was a not a limited liability

limited partnership; and

2. At the time the third party enters into the transaction, less than two (2)

years have passed since the person dissociated as a general partner and

the third party:

a. Does not have notice of the dissociation;

b. Does not have notice of the conversion or merger; and

c. Reasonably believes that the converted or surviving organization is

the converting or constituent limited partnership, the converting or

constituent limited partnership is not a limited liability limited

partnership, and the person is a general partner in the converting or

constituent limited partnership.