{"data":{"id":"us-ky/krs-362.601","jurisdiction":"us-ky","citation":"KRS 362.601","heading":"Circumstances preventing distribution -- Liability for unlawful","body":"distribution.\n(1) A registered limited liability partnership shall not make a distribution to the extent\nthat at the time of the distribution and after giving effect to the distribution, all\nliabilities for the registered limited liability partnership exceed the fair value of the\nassets of the registered limited liability partnership, other than liabilities to partners\nor transferees on account of their transferable interest in liabilities  for which the\nrecourse of creditors is limited to specified property. The fair value of property that\nis subject to a liability for which the recourse of partners is limited shall be included\nin the assets of the registered limited liability partnership o nly to the extent that the\nfair value of that property exceeds that liability.\n(2) A partner or transferee of a registered limited liability partnership who receives a\ndistribution in violation of subsection (1) of this section is liable to the partnership\nfor the amount of that distribution. A proceeding under this section shall be barred\nunless it is commenced within two (2) years after the date on which the distribution\nis paid to the partner or transferee.\n(3) This section does not affect any obligation  or liability of a partner or transferee of a\nregistered limited liability partnership under an agreement or other applicable law\nfor the amount 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":["KRS Chapter 362"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34424","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:56Z","sha256":"0c9b31b65d367d31921b0a7130cb6fb0cff4e26b2388b0cf8700339a10acf866","source_id":"us-ky","stale":false,"prev":"us-ky/krs-362.600","next":"us-ky/krs-362.605"},"notice":"GroundRules: Original legal text. Not legal advice."}