Section 79-13-703 - Dissociated partner's liability to other persons(a) A partner's dissociation does not of itself discharge the partner's liability for a partnership obligation incurred before dissociation. A dissociated partner is not liable for a partnership obligation incurred after dissociation, except as otherwise provided in subsection (b).(b) A partner who dissociates without resulting in a dissolution and winding up of the partnership business is liable as a partner to the other party in a transaction entered into by the partnership, or a surviving partnership under Article 9, within one (1) year after the partner's dissociation, only if the partner is liable for the obligation under Section 79-13-306 and at the time of entering into the transaction the other party: (1) Reasonably believed that the dissociated partner was then a partner;(2) Did not have notice of the partner's dissociation; and(3) Is not deemed to have had knowledge under Section 79-13-303(e) or notice under Section 79-13-704(c).(c) By agreement with the partnership creditor and the partners continuing the business, a dissociated partner may be released from liability for a partnership obligation.(d) A dissociated partner is released from liability for a partnership obligation if a partnership creditor, with notice of the partner's dissociation but without the partner's consent, agrees to a material alteration in the nature or time of payment of a partnership obligation. Laws, 2004, ch. 458, § 703, eff. 1/1/2005.