B.__In all other cases, as of the date:

(1)__The distribution is authorized, if the payment occurs within 120 days after that date; or

(2)__The payment is made, if payment occurs more than 120 days after the distribution is authorized.

5.__Indebtedness to partner and general, unsecured creditors.__ A limited partnership's indebtedness to a partner incurred by reason of a distribution made in accordance with this section is at parity with the limited partnership's indebtedness to its general, unsecured creditors.

6.__Indebtedness not considered liability.__A limited partnership's indebtedness, including indebtedness issued in connection with or as part of a distribution, is not considered a liability for purposes of subsection 2 if the terms of the indebtedness provide that payment of principal and interest are made only to the extent that a distribution could then be made to partners under this section.

7.__Indebtedness issued as distribution; date payment made.__ If indebtedness is issued as a distribution, each payment of principal or interest on the indebtedness is treated as a distribution, the effect of which is measured on the date the payment is made.

§1369.__Liability for improper distributions

1.__General partner liable if consent to distribution not in compliance.__A general partner that consents to a distribution made in violation of section 1368 is personally liable to the limited partnership for the amount of the distribution that 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 1358.

2.__Partner or transferee liable for excess amount received.__ A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of section 1368 is 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 1368.