Allocations Under Regulations Sample Clauses
The "Allocations Under Regulations" clause defines how responsibilities, costs, or benefits are distributed among parties in accordance with applicable laws or regulatory requirements. Typically, this clause specifies which party is responsible for compliance with certain regulations, such as environmental standards or tax obligations, and may outline procedures for adjusting allocations if regulations change. Its core function is to ensure that regulatory burdens and benefits are fairly and clearly assigned, reducing the risk of disputes and ensuring compliance with legal obligations.
Allocations Under Regulations. (a) Company Nonrecourse Deductions. Loss attributable (under Treasury Regulation Section 1.704-2(c)) to "partnership nonrecourse liabilities" (within the meaning of Treasury Regulation Section 1.704-2(b)(1)) shall be allocated among the Members in the same proportion as their respective Membership Interests.
Allocations Under Regulations. (a) Loss attributable (under Treasury Regulation Section 1.704-2(c)) to "partnership nonrecourse liabilities" (within the meaning of Treasury Regulation Section 1.704-2(b)(1)) shall be allocated among the Members in accordance with their respective Percentage Interests. As the allocation of partnership nonrecourse deductions will increase the potential minimum gain chargeback under Section 5.2(d), an allocation of partnership nonrecourse deductions under this provision will not reduce a Member's Capital Account.
(b) Loss attributable (under Treasury Regulation Section 1.704-2(i)(2)) to "partner nonrecourse debt" (within the meaning of Treasury Regulation Section 1.704-2(b)(4)) shall be allocated, in accordance with Treasury Regulation Section 1.7042(i)(1), to the Member who bears the economic risk of loss with respect to the debt to which the Loss is attributable. As the allocation of partner nonrecourse deductions will increase the potential minimum gain chargeback under Section 5.2(d), an allocation of partner nonrecourse provisions under this provision will not reduce a Member's Capital Account.
(c) If, in any year there is a net decrease in minimum gain (within the meaning of Treasury Regulation Section 1.704-2(d)) ("Minimum Gain") (other than a decrease attributable to a "book up" in the tax book value of the Company's assets, a decrease offset by an increase in Member Minimum Gain or any other decrease for which a minimum gain chargeback is not required under Treasury Regulation Section 1.704-2(f)), then each Member will be allocated income equal to that Member's share of the net decrease in Minimum Gain for the year, as determined by Treasury Regulation Section 1.704-2(g)(2). In the event there is insufficient income for the year to fully chargeback each Member's share of the decrease in Minimum Gain, then the chargeback for the year shall be in proportion to each Member's share of the decrease and any decrease that has not been charged back shall be carried over and be treated as a decrease in Minimum Gain in the following year. This subsection is intended to comply with the minimum gain chargeback requirement of Treasury Regulation Section 1.704-2(f) and shall be interpreted consistently therewith.
(d) If, in any year there is a net decrease in Minimum Gain (other than a decrease attributable to a "book up" in the tax book value of the Company's assets, a decrease offset by an increase in Minimum Gain or any other decrease for which a Member Minim...
Allocations Under Regulations