Common use of CODE SECTION 754 ELECTION Clause in Contracts

CODE SECTION 754 ELECTION. In connection with any transfer or assignment of any Membership Units, or any distribution with respect to which a Member recognizes gain under Code section 731(a), the Members or the Majority Member, as applicable, shall, upon the written request of any Member, cause the Company to file an election under Code section 754 and the Treasury Regulations thereunder to adjust the basis of the Company assets under Code Section 734(b) or 743(b) and a corresponding election under the applicable sections of state and local law.