N.Y. Partnership Law § 121-1003: Security for expenses

§ 121-1003. Security for expenses. In a derivative action, brought

pursuant to section 121-1002 of this article, unless the contributions

of or allocable to the plaintiff or plaintiffs 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 attorney's 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 or under any contract or otherwise under law. The

limited partnership shall have recourse to such security in such amount

as the court having jurisdiction of such action shall determine upon the

termination of such action. Notwithstanding the first sentence of this

section, the amount of any security may from time to time be determined

in the discretion of the court having jurisdiction of such action, even

if the five percent of contributions or fifty thousand dollar value test

is met, upon a showing of the need therefor.