loan to partner

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can LLP give loan to it's partner or relative of partner?
Replies (1)

Yes a partner can give loan to LLP and have the same rights to that of other

outside creditors, Since LLP has a distinct legal identity apart from its member

making the partners and LLP two different persons. Even though the governing

statute doesn't put any restrictions for loan from partners to keep the transactions

fair and genuine,  the loan should be granted at an interest rate not higher then that of loan from outsiders. 

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