{"data":{"id":"us-ky/krs-362.1-807","jurisdiction":"us-ky","citation":"KRS 362.1-807","heading":"Settlement of accounts and contributions among partners.","body":"(1) In winding up a partnership's business, the assets of the partnership, including the\ncontributions of the partners required by this section, shall be applied to discharge\nits obligations to creditors, including, to the extent permitted by law, partners who\nare creditors. Any surplus shall be applied to pay the net amount distributable to\npartners in accordance with their right to distributions under subsection (2) of this\nsection.\n(2) Each partner is entitled to a settlement of all partnership accounts upon  winding up\nthe partnership business. In settling accounts among the partners, profits and losses\nthat result from the liquidation of the partnership assets shall be credited and\ncharged to the partners' accounts. The partnership shall make a distribution to a\npartner in an amount equal to any excess of the credits over the charges in the\npartner's account. A partner shall contribute to the partnership an amount equal to\nany excess of the charges over the credits in the partner's account but excluding\nfrom the calculation charges attributable to an obligation for which the partner is\nnot personally liable under KRS 362.1-306.\n(3) If a partner fails to contribute the full amount required under subsection (2) of this\nsection, then all of the other partners sha ll contribute, in the proportions in which\nthose partners share partnership losses, the additional amount necessary to satisfy\nthe partnership obligations for which they are personally liable under KRS 362.1 -\n306. A partner or partner's legal representative  may recover from the other partners\nany contributions the partner makes to the extent the amount contributed exceeds\nthat partner's share of the partnership obligations for which the partner is personally\nliable under KRS 362.1-306.\n(4) After the settleme nt of accounts, each partner shall contribute, in the proportion in\nwhich the partner shares partnership losses, the amount necessary to satisfy\npartnership obligations that were not known at the time of the settlement and for\nwhich the partner is personally liable under KRS 362.1-306.\n(5) The estate of a deceased partner is liable for the partner's obligation to contribute to\nthe partnership.\n(6) An assignee for the benefit of creditors of a partnership or a partner, or a person\nappointed by a court to represent creditors of a partnership or a partner, may enforce\na partner's obligation to contribute to the partnership.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34509","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:57Z","sha256":"d386406b0df8bda9c7fa026ef4202ca42bbf98062e45ea73445b9ef14e13c961","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.1-806","next":"us-ky/krs-362.1-901"},"notice":"GroundRules: Original legal text. Not legal advice."}