Requirement for and payment of financial provision

(1) A limited liability partnership shall, throughout the relevant period, maintain the financial provision described in sub-section (2). (2) The financial provision– (a) shall require one or more banks or insurance companies, upon dissolution of the limited liability partnership, to pay to the person responsible for winding-up the affairs of the limited liability partnership an amount, or an aggregate amount, as the case may be, which is not less than the specified sum, without set- off or retention of any kind; and 15 (b) shall not be assigned, charged or otherwise encumbered by the (3) No proceedings for enforcement of any judgment or act may be taken in respect of the financial provision described in sub-section (2) by any creditor of the limited liability partnership or of any partner in it. (4) Subject to sub-sections (5) and (6), if a limited liability partnership is dissolved and the payment described in sub- section (2) (a) of the section above is not made, the following persons is liable to any creditor for whom the payment described in sub-section (2) would have been applied by virtue of section 28(1) as if section 6 (1) did not apply– (a) the persons who were partners in the limited liability partnership immediately before its dissolution; and (b) where sub-section (1) was not complied with at the time when the debt was incurred or arose or loss caused which gave rise to the creditor’s claims any person who was a partner at the time. (5) For the purposes of sub-section (4), the payment described in sub-section (2)(a) of the section, shall be deemed to have been made if, upon dissolution of a limited liability partnership, an amount, or an aggregate amount, which is not less than the specified sum is paid to the person responsible for winding-up the affairs of the limited liability partnership from any source without set-off or retention of any kind. (6) For the purposes of sub-section (4)(b), a failure to maintain the financial provision described in sub-section (2), which is not attributable to the default of any of the partners and which is remedied within twenty-eight days after the day on 16 which it arises shall not constitute a failure to comply with sub- section (1) of the section. (7) In any proceedings, the burden of proving that the foregoing provisions of this section have been complied with shall rest with the person who claims the limitation of liability conferred by section 6 (1). (8) In this section, any reference to the person responsible for winding-up the affairs of the limited liability partnership means the Minister. (9) In this section“the relevant period” means, in relation to a limited liability partnership, the period beginning upon its registration date and ending upon whichever shall be the earlier of– (a) the payment described in (2)(a) or sub-section (5) being made; or (b) the cancellation of the registration of the limited liability partnership in accordance with section 32; “specified sum” means a bond in the sum of two hundred and fifty thousand dollars.