Common use of Deficit Capital Account Clause in Contracts

Deficit Capital Account. If a Member has a deficit balance in his Capital Account at the time of the liquidation of the Company or the liquidation of his interest in the Company (after crediting allocations of income and debiting allocations of loss to his Capital Account), such Member shall under no circumstances be required to pay to the Company, its creditors or any Member the amount of such deficit balance. No provision of this Agreement shall be construed as creating a deficit restoration obligation or any other obligation relative to a negative or deficit Capital Account balance or any other obligation for the benefit of third parties not executing this Agreement.

Deficit Capital Account. If a Member has a deficit balance in his Capital Account at the time of the liquidation of the Company or the liquidation of his interest in the Company (after crediting allocations of income and debiting allocations of loss to his Capital Account), such Member shall under no circumstances be required to pay to the Company, its creditors or any Member the amount of any such deficit balance. No provision of this Agreement shall be construed as creating an obligation of any Member to restore a deficit restoration obligation or any other obligation relative to a negative or deficit Capital Account balance or otherwise personally obligate any other obligation for the benefit Member to make a Capital Contribution in excess of third parties not executing this Agreementthat set forth in Section 5.1 hereof.