<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-703 - Dissociated partner's liability to other persons. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069841Normal { 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.s2069841SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069841CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069841Normal-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.s2069841DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069841Normal-000001 { text-indent: 0.25in; 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.s2069841DefaultParagraphFont-000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069841Normal-000003 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2069841000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069841SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069841SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069841Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=48-7A-703"><span class="s2069841SENU">48-7A-703</span></a><span xml:space="preserve" class="s2069841SENU">. </span><span class="s2069841CL">Dissociated partner's liability to other persons.</span></p><p dir="ltr" class="s2069841Normal-000000"><span class="s2069841DefaultParagraphFont">(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).</span></p><p dir="ltr" class="s2069841Normal-000001"><span class="s2069841DefaultParagraphFont">(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, within two years after the partner's dissociation, only if the partner is liable for the obligation under § 48</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">7A</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">306 and at the time of entering into the transaction the other party:</span></p><p dir="ltr" class="s2069841Normal-000003"><span class="s2069841DefaultParagraphFont">(1)    Reasonably believed that the dissociated partner was then a partner;</span></p><p dir="ltr" class="s2069841Normal-000003"><span class="s2069841DefaultParagraphFont">(2)    Did not have notice of the partners dissociation; and</span></p><p dir="ltr" class="s2069841Normal-000003"><span class="s2069841DefaultParagraphFont">(3)    Is not deemed to have had knowledge under subsection 48</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">7A</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">303(e) or notice under subsection 48</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">7A</span><span class="s2069841DefaultParagraphFont-000002">-</span><span class="s2069841DefaultParagraphFont">704(c).</span></p><p dir="ltr" class="s2069841Normal-000001"><span class="s2069841DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2069841Normal-000001"><span class="s2069841DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2069841Normal"><span xml:space="preserve" class="s2069841000004"> </span></p><p dir="ltr" class="s2069841Normal"><span class="s2069841SCL">Source:</span><span xml:space="preserve" class="s2069841SCL-000005"> SL 2001, ch 249, § 703.</span></p></div></body></html>