Common use of Advance Funds Clause in Contracts

Advance Funds. If the Defaulting Member does not contribute the Mandatory Additional Capital Contribution within the fifteen (15) day period following notice from the Company of default, the Management Committee may elect to permit non-defaulting Members to advance funds to the Company to cover those amounts that the Defaulting Member fails to contribute. Amounts that a non-Defaulting Member so advances on behalf of the Defaulting Member will become a demand loan due and owing from the Defaulting Member to such non-defaulting Member, bearing interest at the rate per annum of one hundred fifty (150) basis points above the Reference Rate as in effect on the date such Mandatory Additional Capital Contribution was originally due, with such interest being payable monthly. All cash distributions otherwise distributable to the Defaulting Member under this Agreement will instead be paid, on the Defaulting Member's behalf, to the non-Defaulting Members making such advances until such advances and any accrued but unpaid interest thereon are paid in full. Any amounts repaid will first be applied to interest and thereafter to principal. Effective upon a Member becoming a Defaulting Member, such Member will grant to the non-Defaulting Members who advance funds under this Section 3.4.2(b) a security interest in its Economic Interest to secure its obligation to repay such advances and will execute and deliver a promissory note, security agreement, and such UCC-1 financing statements and assignments of certificates of membership interest (or other documents of transfer) in such form as such non-Defaulting Members may reasonably request.

Advance Funds. If the Defaulting Member does not contribute the Mandatory its Additional Capital Contribution within the fifteen (15) 15 day period following the dispatch of written notice from the Company of defaultan Event of Default, the Management Committee may elect to permit non-defaulting Defaulting Members to advance funds to the Company to cover those amounts that the Defaulting Member fails to contribute. Amounts that a non-Defaulting Member so advances on behalf of the Defaulting Member will become a demand loan due and owing from the Defaulting Member to such non-defaulting Member, bearing Defaulting Member and bear interest at the rate per annum of one hundred fifty (150) 150 basis points above the Reference Rate referenced rate of the Bank of America (or any successor bank) as in effect on the date such Mandatory Additional Capital Contribution was originally due, with such interest being payable monthly. All cash distributions otherwise distributable to the Defaulting Member under this Agreement will instead be paid, on the Defaulting Member's behalf, paid to the non-Defaulting Members making such advances until such advances and any accrued but unpaid interest thereon are paid in full. Any amounts amount repaid will first be applied to interest and thereafter to principal. Effective upon a Member becoming a Defaulting Member, such Member will shall grant to the non-Defaulting Members who advance funds under this Section 3.4.2(bsubsection (1) a security interest in its Economic such Defaulting Member's Membership Interest to secure its obligation to repay such advances advances, and will hereby agrees to execute and deliver a promissory note, a security agreement, and such UCC-1 financing statements and assignments of certificates of membership interest (or other documents of security or transfer) in such form as such non-Defaulting Members may reasonably request.