Common use of Computation of Capital Account Clause in Contracts

Computation of Capital Account. The balance of the “Capital Account” of a Partner is initially zero and as of any date is increased by (i) the amount of cash contributed by that Partner to the Partnership on or prior to that date, (ii) the fair market value of any property (reduced by any liabilities which are assumed by the Partnership or to which such property is subject) which is contributed by that Partner to the Partnership on or prior to that date and (iii) any item of Partnership income or gain which is allocated to such Partner pursuant to Section 4.1 on or prior to that date; and is decreased by (a) any Partnership deduction or loss which is allocated to such Partner pursuant to Section 4.1 on or prior to that date, (b) the amount of cash distributed by the Partnership to such Partner on or prior to that date (other than in respect of Partner loans) and (c) the fair market value of any property (reduced by any liabilities which are assumed by the distributee Partner or to which the property is subject) which is distributed by the Partnership to the Partner on or prior to that date.

Computation of Capital Account. The balance of the “Capital Account” of a Partner is initially zero and as of any date is increased by (i) the amount of cash contributed by that Partner to the Partnership on or prior to that date, (ii) the fair market value of any property (reduced by any liabilities which are assumed by the Partnership or to which such such. property is subject) which that is contributed by that Partner to the Partnership on or prior to that date and (iii) any item of Partnership income or gain which that is allocated to such Partner pursuant to Section 4.1 on or prior to that date; and is decreased by (aiv) any Partnership deduction or loss which that is allocated to such Partner pursuant to Section 4.1 on or prior to that date, (bv) the amount of cash distributed by the Partnership to such Partner on or prior to that date (other than in respect of Optional Partner loansLoans) and (cvi) the fair market value of any property (reduced by any liabilities which are assumed by the distributee Partner or to which the property is subject) which that is distributed by the Partnership to the Partner on or prior to that date. Allocations pursuant to Section 4.1.4 shall not be taken into account for capital account purposes.