Common use of Additional Capital Contribution Clause in Contracts

Additional Capital Contribution. The assets of the Company are expected to generate a return sufficient to satisfy all obligations of the Company under this Agreement and the Basic Documents and any other obligations of the Company. It is expected that no capital contributions to the Company will be necessary after the purchase of the Phase-In-Recovery Property. On or prior to the date of issuance of the Bonds, the Sole Member shall make an additional contribution to the Company in an amount equal to at least 0.50% of the initial principal amount of the Bonds or such greater amount as agreed to by the Sole Member in connection with the issuance by the Company of the Bonds, which amount the Company shall deposit into the Capital Subaccount (as defined in the Bond Indenture) established by the Bond Trustee as provided under Section 8.02(a) of the Bond Indenture. Except to the extent set forth in the preceding sentence, and notwithstanding any other provision of this Agreement, the Sole Member is not required to make any additional capital contributions to the Company. No capital contribution by the Sole Member to the Company will be made for the purpose of mitigating losses on Phase-In-Recovery Property that has previously been transferred to the Company, and all capital contributions shall be made in accordance with all applicable limited liability company procedures and requirements, including proper record keeping by the Sole Member and the Company. Each capital contribution will be acknowledged by a written receipt signed by any one of the Directors. The Directors acknowledge and agree that, notwithstanding anything in this Agreement to the contrary, such additional contribution will be managed by an investment manager selected by the Bond Trustee who shall invest such amounts only in Eligible Investments (as defined in the Bond Indenture), and all income earned thereon shall be allocated or paid by the Bond Trustee in accordance with the provisions of the Bond Indenture. The amounts so contributed by the Sole Member shall be credited to the Sole Member’s capital account, as provided in Section 4.3 below. The Sole Member shall have a Membership Interest of 100% of the Company.