Section 121-1003. Security for expenses  


Latest version.
  • In a derivative action, brought
      pursuant to 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.