N.Y. Partnership Law § 67: Effect of dissolution on partner's existing liability

§ 67. Effect of dissolution on partner's existing liability. 1. The

dissolution of the partnership does not of itself discharge the existing

liability of any partner.

2. A partner is discharged from any existing liability upon

dissolution of the partnership by an agreement to that effect between

himself, the partnership creditor and the person or partnership

continuing the business; and such agreement may be inferred from the

course of dealing between the creditor having knowledge of the

dissolution and the person or partnership continuing the business.

3. Where a person agrees to assume the existing obligations of a

dissolved partnership, the partners whose obligations have been assumed

shall be discharged from any liability to any creditor of the

partnership who, knowing of the agreement, consents to a material

alteration in the nature or time of payment of such obligations.

4. The individual property of a deceased partner shall be liable for

those obligations of the partnership incurred while he was a partner and

for which he was liable under section twenty-six of this chapter but

subject to the prior payment of his separate debts.