KRS 362.340: Rights where partnership is dissolved for fraud or misrepresentation.

Where a partnership contract is rescinded on the ground of the fraud or misrepresentation

of one (1) of the parties thereto, the party entitled to rescind is, without prejudice to any

other right, entitled:

(1) To a lien on, or right of retention of, the s urplus of the partnership property after

satisfying the partnership liabilities to third persons for any sum of money paid by

him for the purchase of an interest in the partnership and for any capital or advances

contributed by him; and

(2) To stand, after all liabilities to third persons have been satisfied, in the place of the

creditors of the partnership for any payments made by him in respect of the

partnership liabilities; and

(3) To be indemnified by the person guilty of the fraud or making the repres entation

against all debts and liabilities of the partnership.