Common use of Company Debt Liability Clause in Contracts

Company Debt Liability. A Member will not be personally liable for any debts or losses of the Company beyond the Members respective Capital Contributions, except as otherwise required by law or any personal guarantees or financing requirements. Depending on lender requirements, some or all of the Members may be required to sign personal guarantees for financing of the development properties and may be required to provide financial documentation of their individual financial condition to the institutional lender. (Note, this will be limited as the equity (cash) raised in the Offering will leverage the debt to be financed such as shopping centers, apartments, hotels, etc.) In commencing debt, many institutional lenders require Investors owning more than twenty percent (20%) of the Interests to be underwritten during the loan approval process and to execute loan documents. Members Obligation of Good Faith and Fair Dealing shall be exalted at all times. Each Member (and the Manager) shall discharge their duties to the Company and exercise any rights consistently with the contractual obligation of good faith and fair dealing.