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Current as of April 14, 2021 | Updated by FindLaw Staff
(a) A partner who wrongfully withdraws before the expiration of the partnership's period of duration, the completion of a particular undertaking, or the occurrence of a specified event requiring a winding up of partnership business is not entitled to receive any portion of the redemption price until the expiration of the period, the completion of the undertaking, or the occurrence of the specified event, as appropriate, unless the partner establishes to the satisfaction of a court that earlier payment will not cause undue hardship to the partnership.
(b) A deferred payment accrues interest.
(c) The withdrawn partner may seek to demonstrate to the satisfaction of the court that security for a deferred payment is appropriate.
Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 152.608. Deferred Payment on Wrongful Withdrawal - last updated April 14, 2021 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-152-608/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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