N.Y. Partnership Law Section 121-1003
Security for expenses


In a derivative action, brought pursuant to § 121-1002 (Limited partners’ derivative action)section 121-1002 of this article, unless the contributions of or allocable to the plaintiff or plaintiffs amount to five percent or more of the contributions of all limited partners, in their status as limited partners, or such contributions of or allocable to such plaintiff or plaintiffs have a fair value in excess of fifty thousand dollars, the limited partnership in whose right such action is brought shall be entitled at any stage of the proceedings before final judgment to require the plaintiff or plaintiffs to give security for the reasonable expenses, including attorney’s fees, which may be incurred by it in connection with such action and by the other parties defendant in connection therewith for which the limited partnership may become liable under this article or under any contract or otherwise under law. The limited partnership shall have recourse to such security in such amount as the court having jurisdiction of such action shall determine upon the termination of such action. Notwithstanding the first sentence of this section, the amount of any security may from time to time be determined in the discretion of the court having jurisdiction of such action, even if the five percent of contributions or fifty thousand dollar value test is met, upon a showing of the need therefor.

Source: Section 121-1003 — Security for expenses, https://www.­nysenate.­gov/legislation/laws/PTR/121-1003 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

121–101
Definitions
121–102
Partnership name
121–103
Reservation of partnership name
121–104
Statutory designation of secretary of state as agent for service of process
121–104–A
Resignation for receipt of process
121–105
Registered agent
121–106
Records
121–107
Nature of business
121–108
Business transactions of partner with the partnership
121–109
Service of process on limited partnerships
121–109–A
Electronic service of process
121–110
The partnership agreement
121–201
Certificate of limited partnership
121–202
Amendment of the certificate of limited partnership
121–202–A
Certificate of change
121–203
Cancellation of certificate
121–204
Execution of certificates
121–205
Execution, amendment or cancellation by judicial act
121–206
Filing with the department of state
121–207
Liability for false statement in certificate
121–208
Restated certificate of limited partnership
121–301
Admission of limited partners
121–302
Classes and voting by limited partners
121–303
Liability to third parties
121–304
Person erroneously believing himself a limited partner
121–401
Admission of additional general partners
121–402
Events of withdrawal of a general partner
121–403
General powers and liabilities
121–404
Contributions by a general partner
121–405
Classes and voting by general partners
121–501
Form of contribution
121–502
Liability for contributions
121–503
Sharing of profits and losses
121–504
Sharing of distributions
121–601
Interim distributions
121–602
Withdrawal of a general partner
121–603
Withdrawal of a limited partner
121–604
Right to distribution upon withdrawal
121–605
Distribution in kind
121–606
Right to distribution
121–607
Limitations on distribution
121–701
Nature of partnership interest
121–702
Assignment of partnership interest
121–703
Rights of creditor
121–704
Right of assignee to become limited partner
121–705
Liability upon assignment
121–706
Power of estate of deceased or incompetent partner
121–801
Nonjudicial dissolution
121–802
Judicial dissolution
121–803
Winding up
121–804
Distribution of assets
121–901
Law governing
121–902
Application for authority, contents
121–903
Certificate of amendment
121–903–A
Certificate of change
121–904
Application for authority
121–905
Surrender of certificate of authority
121–906
Termination of existence
121–907
Doing business without certificate of authority
121–908
Violations
121–1001
Parties to actions
121–1002
Limited partners’ derivative action
121–1003
Security for expenses
121–1004
Indemnification of general partner
121–1101
Merger and consolidation of limited partnerships
121–1102
Procedure for merger or consolidation
121–1103
Certificate of merger or consolidation
121–1104
Effect of merger or consolidation
121–1105
Payment for interest of dissenting limited partners
121–1106
Mergers and consolidations involving other business entities
121–1201
Existing limited partnership
121–1202
Adoption by previously formed limited partnerships
121–1300
Fees

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 121-1003’s source at nysenate​.gov

Link Style