{"data":{"id":"us-ky/krs-362.1-932","jurisdiction":"us-ky","citation":"KRS 362.1-932","heading":"Circumstances preventing distribution -- Liability for unlawful","body":"distribution.\n(1) A limited liability partnership shall not make a distribution to the extent that at the\ntime of and after giving effect to the distribution, all liabilities of the lim ited\nliability partnership exceed the fair value of the assets of the limited liability\npartnership, other than liabilities to partners or transferees on account of their\ntransferable interest in liabilities for which the recourse of creditors is limited t o\nspecified property. The fair value of property that is subject to a liability for which\nthe recourse of partners is limited shall be included in the assets of the limited\nliability partnership only to the extent that the fair value of that property excee ds\nthat liability.\n(2) A partner or transferee of a limited liability partnership who receives a distribution\nin violation of subsection (1) of this section is liable to the partnership for the\namount of that distribution. A proceeding under this section shall be barred unless it\nis commenced within two (2) years of the date on which the distribution is paid to\nthe partner or transferee.\n(3) This section does not affect any obligation or liability of a partner or transferee of a\nlimited liability partnershi p under an agreement or other applicable law for the\namount of a distribution.\n(4) For purposes of this section, the term \"distribution\" does not include amounts\nconstituting reasonable compensation for present or past services or reasonable\npayments made in the ordinary course of business pursuant to a bona fide retirement\nplan or other benefits program.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41482","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:57Z","sha256":"3068357b8aed34e937568e3019f0b6d3a7df50259ed15b5f383216d9f873f051","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.1-931","next":"us-ky/krs-362.1-951"},"notice":"GroundRules: Original legal text. Not legal advice."}