Conversion to Property Interest Sample Clauses

Conversion to Property Interest. Property Manager Membership Interest. Notwithstanding anything to the contrary herein and for the avoidance of doubt, In the event an Owner defaults as a result of a failure to make payments due under this Agreement and in accordance with subsection 9.3 herein, the non-defaulting Owners hereby grant the Property Manager the right to convert all of any unpaid portion of an advance and/or accrued but unpaid interest to a Membership interest in the Property. The resulting Property Manager Membership Interest, and the corresponding decrease in the Defaulting Owner’s Membershp Interest, shall be equal to the fraction with (i) the numerator equal to the amount the Peropty Manager is electing to convert to Membershp Interest, and (ii) the denominator equal to the Defaulting Owner’s then-current “Equity Balance”. i. Determine the Appraised Value of the Property shall be determined as provided in Section 10.1; ii. Deduct six percent (6.00%) of the Appraised Value as a reasonable estimate of the eventual costs of sale; iii. Calculate the Defaulting Co-Owner’s then-current Percentage Interest of the remaining amount; and