N.Y. Partnership Law § 70: Rights where partnership is dissolved for fraud, or misrepresentation

§ 70. 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 Where a partnership contract is rescinded on the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 of the parties thereto,

the party entitled to rescind is, without prejudice to any other right,

entitled,

(a) To a lien on, or right of retention of, the surplus 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

(b) 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

(c) To be indemnified by the person guilty of the fraud or making the

representation against all debts and liabilities of the partnership.