A partner is entitled to repayment of the loan,but this right is subordinated to the claims of creditors who are not partners.

Question

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This statement is true. As a partner, you have the right to repayment of a loan, but your claim to repayment is only after the claims of other creditors who are not partners are satisfied. This means that if the partnership fails and there is not enough money to repay all the creditors, the non-partner creditors will have priority over the partner who loaned the money. This is because the partner who loaned the money is considered a related party, and their claim is subordinated to unrelated third-party creditors.

A Partner Is Entitled to Repayment of the Loan,but This