1. (1) Except to the extent necessary to comply with a transfer effective under Section 16-19-702 or charging order in effect under Section 16-19-703, any distributions made by a limited partnership before the limited partnership's dissolution and winding up must be in equal shares among partners and persons dissociated as partners.
2. (2) A person has a right to a distribution before the dissolution and winding up of a limited partnership only if the limited partnership decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution.

3. (3)

   1. (a) A person does not have a right to demand or receive a distribution from a limited partnership in any form other than money.
   2. (b) Except as otherwise provided in Subsection 16-19-811(5), a partnership may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions.

4. (4)

   1. (a) If a partner or transferee becomes entitled to receive a distribution, the partner or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited partnership with respect to the distribution.
   2. (b) However, the limited partnership's obligation to make a distribution is subject to offset for any amount owed to the limited partnership by the partner or a person dissociated as a partner on whose account the distribution is made.

Renumbered and Amended by Chapter 93, 2026 General Session