Common use of Allocations of Nonrecourse Deductions and Minimum Gain Clause in Contracts

Allocations of Nonrecourse Deductions and Minimum Gain. Notwithstanding the provisions of Section 2.04 above, the following allocations of gross income and Nonrecourse Deductions shall be made in the following order of priority: (a) If in any year there is a net decrease in the amount of Minimum Gain attributable to either (i) Nonrecourse Debt that is not Partner Nonrecourse Debt or (ii) Partner Nonrecourse Debt, then each Partner shall first be allocated items of gross income for such year (and, if necessary, subsequent years) in an amount equal to such Partner's share of the net decrease in such Minimum Gain (determined in accordance with Treasury Regulation ss.ss.1.704-2(g)(2) and 1.704-2(i)(5)) to the minimum extent required by, and in the manner specified in, Treasury Regulation ss.ss.1.704-2(f) and 1.704-2(i)(4). (b) All Nonrecourse Deductions of the Partnership for any year, other than Nonrecourse Deductions attributable to Partner Nonrecourse Debt, shall be allocated in the same manner and proportions as are the Net Profits or Net Losses of the Partnership for such year. All Nonrecourse Deductions of the Partnership for any year attributable to Partner Nonrecourse Debt shall be allocated to the Partners who bear the Economic Risk of Loss with respect to the debt.

Allocations of Nonrecourse Deductions and Minimum Gain. Notwithstanding the provisions of Section 2.04 5.01 above, the following allocations of gross income Gross Income and Nonrecourse Deductions shall be made in the following order of priority: (a) If in any year there is a net decrease in in- the amount of Minimum Gain attributable to either (i) Nonrecourse Debt that is not Partner Nonrecourse Debt or (ii) Partner Nonrecourse Debt, then each Partner Member shall first be allocated items of gross income Gross Income for such year (and, if necessary, subsequent years) in an amount equal to such PartnerMember's share of the net decrease in such Minimum Gain (determined in accordance with Treasury Regulation ss.ss.1.704-2(g)(2) and Sections 1.704-2(i)(52(g)(2)and 1.704-2(i) (5)) to the minimum extent required by, and in the manner specified in, Treasury Regulation ss.ss.1.704-Sections 1.704 2(f) and 1.704-2(i)(4). (b) All Nonrecourse Deductions of the Partnership LLC for any year, year other than Nonrecourse Deductions attributable to Partner Nonrecourse Debt, Debt shall be allocated to and among the Members in the same manner and proportions as are the Net Profits or Net Losses of the Partnership for such year. accordance with their respective Percentage Interests. (c) All Nonrecourse Deductions of the Partnership LLC for any year attributable to Partner Nonrecourse Debt shall be allocated to the Partners Members who bear the Economic Risk of Loss with respect to the debt.