Common use of Allocation and Distribution of Liquidation Proceeds Clause in Contracts

Allocation and Distribution of Liquidation Proceeds. Regardless of any other provision in this agreement, if there is a distribution in liquidation of this General Partnership, or when any partner's interest is liquidated, all items of income and loss shall be allocated to the partners' capital accounts, and all appropriate credits and deductions shall then be made to these capital accounts before any final distribution is made. A final distribution shall be made to partners only to the extent of, and in proportion to, any positive balance in each partner's capital account. PARTNERSHIP WITHDRAWAL AND TRANSFER PROVISIONS

Allocation and Distribution of Liquidation Proceeds. Regardless of any other provision in this agreement, if there is a distribution in liquidation of this General Partnership, or when any partner's interest is liquidated, all items of income and loss shall be allocated to the partners' capital accounts, and all appropriate credits and deductions shall then be made to these capital accounts before any final distribution is made. A final distribution shall be made to partners only to the extent of, and in proportion to, any positive balance in each partner's capital account. PARTNERSHIP WITHDRAWAL AND TRANSFER PROVISIONS.