Deemed Equity Contributions Clause Samples
The Deemed Equity Contributions clause defines circumstances under which certain payments or actions are treated as if they were equity contributions by a party, even if no actual cash or assets are transferred as equity. For example, if a party covers another's obligations or offsets a debt on behalf of the company, these amounts may be considered as if the party had made a direct equity investment. This mechanism ensures that parties are credited appropriately for financial support provided in non-traditional forms, maintaining fairness in ownership calculations and protecting the interests of those who contribute value to the company.
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Deemed Equity Contributions. Upon the deposit by the Contributor of an Equity Contribution in the Note Redemption Account pursuant to Section 2.1 and 2.2, and notwithstanding that any such amounts shall be deposited directly into the Note Redemption Account, (i) the Contributor shall be deemed to have made an equity contribution to the Pledgor in the amount of such Equity Contribution or deposited or transferred amount and (ii) the Pledgor shall be deemed to have made an equity contribution to the Company in the amount of such Equity Contribution or deposited or transferred amount.
Deemed Equity Contributions. Upon (a) the deposit by the Contributor of an Equity Contribution in the Construction Account pursuant to Section 2.1(c) or 2.2(a), (b) the deposit by the Collateral Agent of the proceeds of a drawing under the Equity Letter of Credit in the Construction Account pursuant to Section 2.2(b)(i) or (c) the transfer by the applicable Account Bank of amounts from a Cash Collateral Account to the Construction Account pursuant to Section 2.2(b)(ii), and notwithstanding that any such amounts shall be deposited directly into the Construction Account, (i) the Contributor shall be deemed to have made an equity contribution to the Pledgor in the amount of such Equity Contribution or deposited or transferred amount and (ii) the Pledgor shall be deemed to have made an equity contribution to the Company in the amount of such Equity Contribution or deposited or transferred amount.
Deemed Equity Contributions. Upon (a) the deposit by the Contributor of an Equity Contribution in the Construction Account pursuant to Section 2.1(c)(x) or 2.2(a), or the deposit by the Contributor of an Equity Contribution in any other account pursuant to Section 2.1(c)(y), (b) the deposit by the Collateral Agent of the proceeds of a drawing under the Equity Letter of Credit in the Construction Account pursuant to Section 2.2(b)(i) or (c) the transfer by the applicable Account Bank of amounts from a Cash Collateral Account to the Construction Account pursuant to Section 2.2(b)(ii), and notwithstanding that any such amounts shall be deposited directly into the Construction Account, (i) the Contributor shall be deemed to have made an equity contribution to MidAmerican Renewables, LLC in the amount of such Equity Contribution or deposited or transferred amount, (ii) MidAmerican Renewables, LLC shall be deemed to have made an equity contribution to MidAmerican Solar, LLC in the amount of such Equity Contribution or deposited or transferred amount, (iii) MidAmerican Solar, LLC shall be deemed to have made an equity contribution to the Pledgor in the amount of such Equity Contribution or deposited or transferred amount, and (iv) the Pledgor shall be deemed to have made an equity contribution to the Company in the amount of such Equity Contribution or deposited or transferred amount.