Tex. Business Organizations Code § 152.608
DEFERRED PAYMENT ON WRONGFUL WITHDRAWAL
Texas · Texas Business Organizations Code · Status: effective
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- Citation
- Tex. Business Organizations Code § 152.608, DEFERRED PAYMENT ON WRONGFUL WITHDRAWAL, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/584047
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Full text
(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(c) The withdrawn partner may seek to demonstrate to the satisfaction of the court that security for a deferred payment is appropriate.