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U.S. Code as of:
01/19/04
Section 723. Rights of partnership trustee against general partners
(a) If there is a deficiency of property of the estate to pay in
full all claims which are allowed in a case under this chapter
concerning a partnership and with respect to which a general
partner of the partnership is personally liable, the trustee shall
have a claim against such general partner to the extent that under
applicable nonbankruptcy law such general partner is personally
liable for such deficiency.
(b) To the extent practicable, the trustee shall first seek
recovery of such deficiency from any general partner in such
partnership that is not a debtor in a case under this title.
Pending determination of such deficiency, the court may order any
such partner to provide the estate with indemnity for, or assurance
of payment of, any deficiency recoverable from such partner, or not
to dispose of property.
(c) Notwithstanding section 728(c) of this title, the trustee has
a claim against the estate of each general partner in such
partnership that is a debtor in a case under this title for the
full amount of all claims of creditors allowed in the case
concerning such partnership. Notwithstanding section 502 of this
title, there shall not be allowed in such partner's case a claim
against such partner on which both such partner and such
partnership are liable, except to any extent that such claim is
secured only by property of such partner and not by property of
such partnership. The claim of the trustee under this subsection is
entitled to distribution in such partner's case under section
726(a) of this title the same as any other claim of a kind
specified in such section.
(d) If the aggregate that the trustee recovers from the estates
of general partners under subsection (c) of this section is greater
than any deficiency not recovered under subsection (b) of this
section, the court, after notice and a hearing, shall determine an
equitable distribution of the surplus so recovered, and the trustee
shall distribute such surplus to the estates of the general
partners in such partnership according to such determination.
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