Common use of Amount and Time of Distributions Clause in Contracts

Amount and Time of Distributions. Distributions pursuant to this Article VI will be made at such times and in such amounts as the General Partner may, in its sole discretion, determine. The General Partner shall endeavor to distribute each Partnership Fiscal Year to each Limited Partner an amount at least equal to the Applicable Percentage per annum uncompounded on such Limited Partner’s Unreturned Deemed Capital Contribution. The Partnership may be restricted from making distributions under the Act or the terms of notes, mortgages or other debt obligations which it may obtain from lenders in connection with Partnership loans. Distributions may also be restricted or suspended whenever the General Partner, in its sole discretion, determines that such action is in the best interests of the Partnership. All distributions are subject to the payment of Partnership expenses, including maintenance of reasonable operating reserves. Notwithstanding anything herein to the contrary, in each Partnership Fiscal Year, the General Partner may, in its sole discretion, distribute to the Partners such amounts as the General Partner, in its sole discretion, determines are necessary to enable the Partners to pay the Federal income taxes on their distributive shares of the Partnership’s taxable income (including separately stated items). The General Partner shall not incur any liability as a result of its determination to distribute Net Cash, even though such distribution may result in the Partnership’s retaining insufficient funds for the operation of its business, provided its determination was made in good faith and not as a result of its gross negligence or willful misconduct. ~10~ Table of Contents

Amount and Time of Distributions. Distributions pursuant to this Article VI will be made at such times and in such amounts as the General Partner may, in its sole discretion, determine. The General Partner shall endeavor to distribute each Partnership Fiscal Year to each Limited Partner an amount at least equal to the Applicable Percentage per annum uncompounded on such Limited Partner’s Unreturned Deemed Capital ContributionInvested Capital. The Partnership may be restricted from making distributions under the Act or the terms of notes, mortgages or other debt obligations which it may obtain from lenders in connection with Partnership loans. Distributions may also be restricted or suspended whenever the General Partner, in its sole discretion, determines that such action is in the best interests of the Partnership. All distributions are subject to the payment of Partnership expenses, including maintenance of reasonable operating reserves. Notwithstanding anything herein to the contrary, in each Partnership Fiscal Yearfiscal year of the Partnership, the General Partner may, in its sole discretion, distribute to the Partners such amounts as the General Partner, in its sole discretion, determines are necessary to enable the Partners to pay the Federal income taxes on their distributive shares of the Partnership’s taxable income (including separately stated items). The General Partner shall not incur any liability as a result of its determination to distribute Net CashCash Flow, even though such distribution may result in the Partnership’s retaining insufficient funds for the operation of its business, provided its determination was made in good faith and not as a result of its gross negligence or willful misconduct. ~10~ Table of Contents.