HRS §425E-509
Who must pay back an improper distribution
This section says that a general partner who approves a distribution that breaks the rules can be personally responsible to pay back the excess. A partner or transferee who gets such a distribution knowing it was improper may also have to pay back the excess. The section also allows the general partner to bring in others who are liable and sets a time limit for lawsuits.
The statute, as written — Liability for improper distributions
(a) A general partner that consents to a distribution made in violation of section 425E-508 shall be personally liable to the limited partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution the general partner failed to comply with section 425E-408. (b) A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of section 425E-508 shall be personally liable to the limited partnership but only to the extent that the distribution received by the partner or transferee exceeded the amount that could have been properly paid under section 425E-508. (c) A general partner against which an action is commenced under subsection (a) may: (1) Implead in the action any other person that is liable under subsection (a) and compel contribution from the person; and (2) Implead in the action any person that received a distribution in violation of subsection (b) and compel contribution from the person in the amount the person received in violation of subsection (b). (d) An action under this section is barred if it is not commenced within two years after the distribution.
Sections this one refers to
§425E-508 Rules for when a limited partnership can pay out money
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.