198. Arrangements between partners for discharge of debts.

198.     Arrangements between partners for discharge of debts.

An arrangement between the members of a dissolved partnership that the debts of the firm are to be paid and the affairs wound up by a particular partner does not bind creditors of the firm even if they have notice of such arrangement1; but a charge by a partner on his private property to secure his firm's banking account2 is not available as a security for debts to the bank which are incurred after his death by the surviving partners who continue the business3.

Provisions in