Class G Priority Allocation Clause Samples
The Class G Priority Allocation clause establishes the order in which payments or distributions are made to holders of Class G interests within a financial structure, such as a securitization or investment fund. Typically, this clause details when and how Class G investors receive their share of cash flows, often after certain other classes have been paid but before more junior classes. By clearly defining the payment hierarchy, the clause ensures transparency and predictability for investors, helping to allocate risk and returns appropriately among different classes of stakeholders.
Class G Priority Allocation. The holders of Class G Units shall be allocated gross income such that, from the inception of the partnership through the end of the fiscal year to which the allocation relates, including the year of liquidation of the Partnership in accordance with Article X, the sum of all priority allocations pursuant to this Section 5.2(K) equals (or approaches as nearly as possible) the sum of all Class G Priority Return Amounts accrued through the end of the fiscal year to which the allocation relates.