LD 1609
pg. 24
Page 23 of 148 An Act To Establish the Uniform Partnership Act Page 25 of 148
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LR 1469
Item 1

 
1. Section 105 is new. It mandates the procedural rules for
the execution, filing, and recording of the various "statements"
(see Section 101(11)) authorized by RUPA. Section 101(13) makes
clear that a statement of qualification filed by a partnership to
become a limited liability partnership is included in the
definition of a statement. Therefore, the execution, filing, and
recording rules of this section must be followed except that the
decision to file the statement of qualification must be approved
by the vote of the partners necessary to amend the partnership
agreement as to contribution requirements. See Section 1001(b)
and Comments.

 
No filings are mandatory under RUPA. In all cases, the filing
of a statement is optional and voluntary. A system of mandatory
filing and disclosure for partnerships, similar to that required
for corporations and limited partnerships, was rejected for
several reasons. First, RUPA is designed to accommodate the
needs of small partnerships, which often have unwritten or
sketchy agreements and limited resources. Furthermore,
inadvertent partnerships are also governed by the Act, as the
default form of business organization, in which case filing would
be unlikely.

 
The RUPA filing provisions are, however, likely to encourage
the voluntary use of partnership statements. There are a number
of strong incentives for the partnership or the partners to file
statements or for third parties, such as lenders or transferees
of partnership property, to compel them to do so.

 
Only statements that are executed, filed, and, if appropriate
(such as the authority to transfer real property), recorded in
conformity with Section 105 have the legal consequences accorded
statements by RUPA. The requirements of Section 105 cannot be
varied in the partnership agreement, except the duty to provide
copies of statements to all the partners. See Section 103(b)(1).

 
In most States today, the filing and recording of statements
requires written documents. As technology advances, alternatives
suitable for filing and recording may be developed. RUPA itself
does not impose any requirement that statements be in writing.
It is intended that the form or medium for filing and recording
be left to the general law of adopting States.

 
2. Section 105(a) provides for a single, central filing of
all statements, as is the case with corporations, limited
partnerships, and limited liability companies. The expectation
is that most States will assign to the Secretary of State the
responsibility of maintaining the filing system for partnership
statements. Since a partnership is an entity under RUPA, all


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