Deficit Make-Up Obligation Sample Clauses
Deficit Make-Up Obligation. If hereafter a Party has a negative FMV capital account balance, that is a balance of less than zero, in accordance with of Treas. Reg. § 1.704-1 (b)(2)(ii)(b)(3) such Party is obligated to contribute an amount of money to the Partnership sufficient to achieve a zero balance FMV capital account (the “Deficit Make-Up Obligation”). Moreover, any Party may contribute an amount of cash to the Partnership to facilitate the balancing of the FMV capital accounts. If after these adjustments the FMV capital accounts are not balanced, Sees. 7.5 shall apply.
Deficit Make-Up Obligation. In the event after liquidation of the Partnership and the allocation of liquidation proceeds pursuant to Article VIII, the General Partner or DMI has a negative balance in its Capital Account, such Partner shall contribute to the Partnership within the time limits specified by Treasury Regulations Section 1.704-1(b)(2)(ii)(b)(3) an amount equal to such negative amount which shall be used to pay creditors of the Partnership and the balance of which shall be distributed to the other Partners in accordance with the positive balances in their Capital Accounts.