Section 8202 - DefinitionsThe following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Distribution." A direct or indirect transfer of money or other property or incurrence of indebtedness by a limited liability partnership to a person on account of a transferable interest or in a person's capacity as a partner. The term:
(1) includes: (i) a redemption or other purchase by a partnership of a transferable interest; and(ii) a transfer to a partner in return for the partner's relinquishment of any right to participate as a partner in the management or conduct of the partnership's business or to have access to records or other information concerning the partnership's business ; and(2) d oes not include: (i) amounts constituting reasonable compensation for present or past service or payments made in the ordinary course of business under a bona fide retirement plan or other bona fide benefits program;(ii) the making of, or payment or performance on, a guaranty or similar arrangement by a partnership for the benefit of any or all of its partners;(iii) a direct or indirect allocation or transfer effected under Chapter 3 (relating to entity transactions) with the approval of the partners ; or(iv) a direct or indirect transfer of: (A) a governance or transferable interest; or(B) options, rights or warrants to acquire a governance or transferable interest. "Partner." Includes a person who is or was a partner in a limited liability partnership or a general partner in a limited liability limited partnership at any time while the registration of the partnership under this subchapter is or was in effect.
Amended by P.L. TBD 2016 No. 170, § 17, eff. 2/19/2017.1994, Dec. 7, P.L. 703, No. 106, § 4, effective in 60 days. Amended 2001, June 22, P.L. 418, No. 34, § 2, effective in 60 days.