<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 48-7A-401 - Partner's rights and duties. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069825Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069825SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069825CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069825Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069825DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; 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font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069825Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=48-7A-401"><span class="s2069825SENU">48-7A-401</span></a><span xml:space="preserve" class="s2069825SENU">. </span><span class="s2069825CL">Partner's rights and duties.</span></p><p dir="ltr" class="s2069825Normal-000000"><span class="s2069825DefaultParagraphFont">(a) Each partner is deemed to have an account that is:</span></p><p dir="ltr" class="s2069825Normal-000001"><span class="s2069825DefaultParagraphFont">(1)    Credited with an amount equal to the money plus the value of any other property, net of the amount of any liabilities, the partner contributes to the partnership and the partner's share of the partnership profits; and</span></p><p dir="ltr" class="s2069825Normal-000001"><span xml:space="preserve" class="s2069825DefaultParagraphFont">(2)    Charged with an amount equal to the money plus the value of any other property, net of the amount of any liabilities, distributed by the partnership to the partner and the partner's share of the partnership losses. </span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(b) Each partner is entitled to an equal share of the partnership profits and is chargeable with a share of the partnership losses in proportion to the partner's share of the profits.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(c) A partnership shall reimburse a partner for payments made and indemnify a partner for liabilities incurred by the partner in the ordinary course of the business of the partnership or for the preservation of its business or property.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(d) A partnership shall reimburse a partner for an advance to the partnership beyond the amount of capital the partner agreed to contribute.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(e) A payment or advance made by a partner which gives rise to a partnership obligation under subsection (c) or (d) constitutes a loan to the partnership which accrues interest from the date of the payment or advance.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(f) Each partner has equal rights in the management and conduct of the partnership business.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(g) A partner may use or possess partnership property only on behalf of the partnership.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(h) A partner is not entitled to remuneration for services performed for the partnership, except for reasonable compensation for services rendered in winding up the business of the partnership.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(i) A person may become a partner only with the consent of all of the partners.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(j) A difference arising as to a matter in the ordinary course of business of a partnership may be decided by a majority of the partners. An act outside the ordinary course of business of a partnership and an amendment to the partnership agreement may be undertaken only with the consent of all of the partners.</span></p><p dir="ltr" class="s2069825Normal-000002"><span class="s2069825DefaultParagraphFont">(k) This section does not affect the obligations of a partnership to other persons under § 48</span><span class="s2069825DefaultParagraphFont-000003">-</span><span class="s2069825DefaultParagraphFont">7A</span><span class="s2069825DefaultParagraphFont-000003">-</span><span class="s2069825DefaultParagraphFont">301.</span></p><p dir="ltr" class="s2069825Normal"><span xml:space="preserve" class="s2069825000004"> </span></p><p dir="ltr" class="s2069825Normal"><span class="s2069825SCL">Source:</span><span xml:space="preserve" class="s2069825SCL-000005"> SL 2001, ch 249, § 401.</span></p></div></body></html>