SENATE BILL NO. 111
AN ACT TO AMEND CHAPTER 15, TITLE 6 OF THE DELAWARE CODE RELATING TO THE REGISTRATION AND REGULATION OF REGISTERED LIMITED LIABILITY PARTNERSHIPS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):
Section 1. Amend § 1546, Chapter 15, Title 6 of the Delaware Code by adding thereto the following new subsections "(e)" and ''(1)'' reading as follows:
"(e) Notwithstanding the pendency of other claims against the partnership, a registered limited liability partnership is in compliance with this section if:
(1) at the time a claim arising out of the kinds of negligence, wrongful acts or misconduct for which liability is limited by section I515(b) of this title is asserted through service of a complaint or comparable pleading in a judicial or administrative proceeding, the partnership has in effect insurance, in the amount set forth in subsection (a) of this section, that is applicable to (A) claims made as of the date such claim is asserted or (B) events occurring on the date of the conduct giving rise to such claim; or
(2) within 30 days after the day such a claim is asserted as described in (1) above, the partnership has designated and segregated funds in the amount set forth in subsection (d) of this section.
(f) Notwithstanding any other provision of this section, if a registered limited liability partnership is otherwise in compliance with the terms of this section 1546 at the time that a bankruptcy or other insolvency proceeding is commenced with respect to the registered limited liability partnership, it shall be deemed to be in compliance with section 1546 during the pendency of the proceeding. A registered limited liability partnership which has been the subject of such a proceeding and which conducts business after the proceeding has ended must thereafter comply with section 1546(a) or (d) in order to thereafter obtain the limitations on liability afforded by section 1515(b) hereof"
Section 2. This Act shall be effective on August 1, 1995.
Approved June 23, 1995