Administration of Capital Accounts. This Section 3.5.3 and other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Section 704(b) of the Code and the Treasury Regulations promulgated thereunder and shall be interpreted and applied in a manner consistent with such provisions. If the Administrative Member determines that it is prudent to modify the manner in which the Capital Accounts or any charges or credits thereto are computed in order to comply with such provisions, then the Administrative Member may make such modification, where approved by the Condor Member, but only if it is not likely to change distributions to any Member pursuant to Section 5.1 or pursuant to Section 11.4 upon the dissolution of the LLC. The Condor Member shall not unreasonably withhold, condition, or deny its approval of a modification under this Section 3.5.3, if it will not have a material adverse effect on the Condor Member or Condor Hospitality Trust Inc., and failure of the Condor Member to respond to a request for its approval within five (5) Business Days after receipt of the request shall be deemed to be its approval, if the request states in capitalized letters that it is made pursuant to this Section 3.5.3 and that failure to respond within five (5) Business Days shall be deemed to be an approval.
Appears in 4 contracts
Samples: Limited Liability Company Agreement (Condor Hospitality Trust, Inc.), Limited Liability Company Agreement (Condor Hospitality Trust, Inc.), Limited Liability Company Agreement (Condor Hospitality Trust, Inc.)
