Guam § 25612 - Rules for Distribution.

§ 25612. Rules for Distribution.

COL070307

18 GCA BUSINESS S TRUCTURE & FUNCTION

In settling accounts between the partners after the dissolution, the

following rules shall be observed, subject to any agreement to the contrary:

(a) The assets of the partnership are:

(i) The partnership property,

(ii) The contributions of the partners necessary for the

payment of all the liabilities specified in clause (b) of this

paragraph.

(b) The liabilities of the partnership shall rank in order of payment

as follows:

(i) Those owing to creditors other than partners;

(ii) Those owing to partners other than for capital and

profits;

(iii) Those owing to partners in respect of capital;

(iv) Those owing to partners in respect of profits.

(c) The assets shall be applied in the order of their declaration in

clause (a) of this paragraph to the satisfaction of the liabilities.

(d) Except as provided in § 25307(c), the partners shall

contribute, as provided by § 25401(a), the amount necessary to satisfy

the liabilities; but, if any, but not all, of the partners are insolvent, or,

not being subject to process, refuse to contribute, the other partners

shall contribute their share of the liabilities and, in the relative

proportions in which they share the profits, the additional amount

necessary to pay the liability.

(e) An assignee for the benefit of creditors or any person

appointed by the court shall have the right to enforce the contribution

specified in clause (d) of this paragraph.

(f) Any partner or his legal representative shall have the right to

enforce the contributions specified in clause (d) of this paragraph, to

the extent of the amount which he has paid in excess of his share of the

liability.

(g) The individual property of the deceased partner shall be liable

for the contributions specified in clause (d) of this paragraph.

COL070307

18 GCA BUSINESS S TRUCTURE & FUNCTION

(h) When the partnership property and the individual properties of

the partners are in the possession of a court for distribution, partnership

creditors shall have priority on partnership property and separate

creditors on individual property, saving the rights of lien or secured

creditors as heretofore.

(i) Where a partner has become bankrupt or his estate is insolvent

the claims against his separate property shall rank in the following

order:

(1) Those owing to separate creditors.

(2) Those owing to partnership creditors.

(3) Those owing to partners by way of contributions.