Common use of Additional Operating Capital Clause in Contracts

Additional Operating Capital. (a) Each Partner may from time to time be required to make an Additional Capital Contribution pursuant to this section. Any such contribution shall be made within thirty (30) days from the date of written notice by the Partners. If the cash receipts are insufficient to pay the obligations of the Partnership, the Partners are hereby expressly authorized to borrow, on behalf of the Partnership, such sums of money sufficient to offset negative cash flow. To secure any such loan, the Partners or record title holder, are hereby authorized and empowered to pledge, mortgage or otherwise encumber or hypothecate the Partnership Property. Should the Partners not be able to borrow on behalf of the Partnership such funds as are necessary to timely discharge Partnership obligations, then the Partners may assess each Partner, based upon such Partner's pro rata ownership interest in the Partnership, such sum or sums as are necessary to timely discharge Partnership obligations. All sums raised by the Partners pursuant to this section shall be used solely for Partnership purposes.