N.Y. Partnership Law § 115-b: Security for expenses in limited partners' derivative action brought in the right of the limited partnership to procure a judgment in its...

§ 115-b. Security for expenses in limited partners' derivative action

brought in the right of the limited partnership to procure a judgment in

its favor. In any action specified in section one hundred fifteen-a of

this article, unless the contributions of or allocable to plaintiff or

plaintiffs to partnership property amount to five percent or more of the

contributions of all limited partners, in their status as limited

partners, or such contributions of or allocable to such plaintiff or

plaintiffs have a fair value in excess of fifty thousand dollars, the

limited partnership in whose right such action is brought shall be

entitled at any stage of the proceedings before final judgment to

require the plaintiff or plaintiffs to give security for the reasonable

expenses, including attorneys' fees, which may be incurred by it in

connection with such action and by the other parties defendant in

connection therewith for which the limited partnership may become liable

under this article under any contract or otherwise under law, to which

the limited partnership shall have recourse in such amount as the court

having jurisdiction of such action shall determine upon the termination

of such action. The amount of such security may thereafter from time to

time be increased or decreased in the discretion of the court having

jurisdiction of such action upon showing that the security provided has

or may become inadequate or excessive.