88 C.R. - "'At Risk'" - "Statutory 'At-Risk' Rules"

S.96(2.2)(c) does not apply to amounts owing which arose as a result of legitimate commercial transactions which are unrelated to the limited partner's acquisition of his interest in the partnership and the terms of payment conform to normal commercial arrangements comparable to those between parties dealing at arm's length.

Universally available government assistance is not a benefit. Limited recourse borrowings constitute a deductible benefit. Where the purchase price of a limited partner's interest has been financed with limited recourse borrowings, such borrowings will reduce the partner's at-risk amount.

A revenue guarantee which merely guarantees a level of revenues sufficient to offset annual cash operating expenses of the limited partnership will not reduce a limited partner's at-risk amount.

Although the partnership acts of most of the common law provinces provide that an incoming partner is not liable for the debts which the partnership incurred before he became a member of the partnership s. 96(2.4)(a) will not normally apply in this situation.