Capital Default Reallocation Right Clause Samples

Capital Default Reallocation Right. If at any time a Non-Defaulting Member exercises a Capital Default Reallocation Right, then for purposes of effectuating the transfer of such portion of the Defaulting Member’s Membership Interest, such Non-Defaulting Member shall be treated as having made a Capital Contribution on its own behalf to the Company in an amount equal to the principal amount of the applicable Capital Default Loan plus the accrued and unpaid interest owed thereon through the date of the exercise of such Capital Default Reallocation Right, and such Non-Defaulting Member’s Capital Account balance and Vested Percentage Interest and Capital Percentage Interest shall be appropriately increased, and the Defaulting Member’s Capital Account balance and Vested Percentage Interest and Capital Percentage Interest shall be correspondingly reduced, by the amount so transferred. After the date that a Non-Defaulting Member exercises a Capital Default Reallocation Right, there shall be no right on the part of the Defaulting Member to cure or repay the applicable Capital Default Loan or to reverse such Capital Default Reallocation Right. Notwithstanding anything to the contrary hereunder, the making of any Capital Default Loan or exercise of any Capital Default Reallocation Right hereunder shall not cure or constitute a waiver of any Capital Default hereunder;