Settling accounts on winding-up

(1) Where the accounts are settled in the course of the winding-up of the affairs of a limited liability partnership, the liabilities of the partnership shall be paid in the following order of priority– (a) liabilities to creditors, excluding any partner or former partner in the limited liability partnership in respect of their partnership interest or in respect of any loan made by them to the partnership for any purpose; then (b) subject to the partnership agreement and to any agreement between the limited liability partnership and a former partner, (i) liabilities to former partners in the limited liability partnership in respect of any loans made by them to the partnership for any purpose; then (ii) liabilities to former partners in the limited liability partnership in respect of their partnership interests or otherwise; then (c) subject to the partnership agreement– (i) liabilities to partners in the limited liability partnership in respect of any loans made by them to the partnership for any purpose; then (ii) liabilities to partners in the limited liability partnership in respect of their partnership interests or otherwise. (2) Subject to the partnership agreement, any limited liability partnership property remaining after payment of the liabilities described in sub-section (1), shall be distributed equally among the partners. winding- up.