(805 ILCS 206/703)
Sec. 703.
Dissociated partner's liability
to other persons.
(a) A partner's dissociation does not of itself discharge the partner's
liability for a partnership
obligation incurred before dissociation. A dissociated partner is not liable
for a partnership
obligation incurred after dissociation, except as otherwise provided in
subsection (b) of this
Section.
(b) A partner who dissociates without resulting in a dissolution and winding
up of the
partnership business is liable as a partner to the other party in a transaction
entered into by the
partnership, or a surviving partnership under Article 9 of this Act, within 2
years after the
partner's dissociation, only if the partner is liable for the obligation under
Section 306 and at the
time of entering into the transaction the other party:
(1) reasonably believed that the dissociated partner | ||
| ||
(2) did not have notice of the partner's | ||
| ||
(3) is not deemed to have had knowledge under Section | ||
| ||
(c) By agreement with the partnership creditor and the partners continuing
the business, a
dissociated partner may be released from liability for a partnership
obligation.
(d) A dissociated partner is released from liability for a partnership
obligation if a partnership
creditor, with notice of the partner's dissociation but without the partner's
consent, agrees to a
material alteration in the nature or time of payment of a partnership
obligation.
(Source: P.A. 92-740, eff. 1-1-03.)
|