A. An act of a person that immediately before a conversion or merger became effective was a general partner in a converting or constituent limited partnership binds the converted or surviving organization after the conversion or merger becomes effective, if:

1. (1) before the conversion or merger became effective, the act would have bound the converting or constituent limited partnership pursuant to Section 402 [54-2A-402 NMSA 1978] of the Uniform Revised Limited Partnership Act; and

2. (2) at the time the third party enters into the transaction, the third party:

   1. (a) does not have notice of the conversion or merger; and

   2. (b) reasonably believes that the converted or surviving business is the converting or constituent limited partnership and that the person is a general partner in the converting or constituent limited partnership.

      B. An act of a person that before a conversion or merger became effective was dissociated as a general partner from a converting or constituent limited partnership binds the converted or surviving organization after the conversion or merger becomes effective, if:

3. (1) before the conversion or merger became effective, the act would have bound the converting or constituent limited partnership pursuant to Section 402 of the Uniform Revised Limited Partnership Act if the person had been a general partner; and

4. (2) at the time the third party enters into the transaction, less than two years have passed since the person dissociated as a general partner and the third party:

   1. (a) does not have notice of the dissociation;
   2. (b) does not have notice of the conversion or merger; and

   3. (c) reasonably believes that the converted or surviving organization is the converting or constituent limited partnership and that the person is a general partner in the converting or constituent limited partnership.

      C. If a person having knowledge of the conversion or merger causes a converted or surviving organization to incur an obligation pursuant to Subsection A or B of this section, the person is liable:

5. (1) to the converted or surviving organization for any damage caused to the organization arising from the obligation; and
6. (2) if another person is liable for the obligation, to that other person for any damage caused to that other person arising from the liability.

History: Laws 2007, ch. 129, § 1112.

ANNOTATIONS

Compiler's notes. — Laws 2009, ch. 181, § 6 amended Laws 2007, ch. 129, § 1208 to change the effective date of this section from July 1, 2009 to January 1, 2010.