Common use of Deficit Restoration Obligation Clause in Contracts

Deficit Restoration Obligation. In the event a Protected Partner has elected to enter into a DRO, the Partnership will maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to or greater than the sum of the total amount of the DRO of all Protected Partners (plus, the total amount of the DRO, if any, of other partners in the Partnership). Except as required by a change in law or regulation (or administrative interpretations thereof), the deficit restoration obligation evidenced thereby shall be presumed to cause the Protected Partner to be allocated an amount of liabilities equal to the amount of the DRO of such Protected Partner for purposes of Sections 465 and 752 of the Code, provided that (1) the Partnership maintains an amount of debt that is considered “recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to the aggregate amounts of the DRO of all partners of the Partnership and (2) all other terms and conditions of the Partnership Agreement with respect to such deficit restoration obligation are ACTIVE 203305734v.1 met. For the avoidance of doubt, the purpose of this Section 3.8 is not to require the Partnership to incur or increase the amount of “recourse” indebtedness, if any, to which the Protected Properties are subject, provided, however, that the Partnership maintains at the same time sufficient other “recourse” indebtedness to cover the aggregate amounts of the DRO of all partners of the Partnership.

Deficit Restoration Obligation. In the event a Protected Partner has elected to enter into a DRO, the The Partnership will maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness a Recourse Liability (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to or greater than the sum of the total amount of the amounts subject to a DRO of all Protected Partners (plus, the total amount of the DRO, if any, of and other partners in the PartnershipPartnership (the “Aggregate DRO Amount”). Except as required by a change in law or regulation (or administrative interpretations thereof), the The deficit restoration obligation evidenced thereby shall be conclusively presumed to cause the Protected Partner to be allocated an amount of liabilities equal to the amount of the DRO Amount of such Protected Partner for purposes of Sections 465 and Section 752 of the Code, provided that (1) the Partnership maintains an amount of debt that is considered “recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to the aggregate amounts of the DRO Amounts of all partners of the Partnership and (2) all other terms and conditions of the Partnership Agreement with respect to such deficit restoration obligation are ACTIVE 203305734v.1 met. For the avoidance of doubt, the purpose of this Section 3.8 is not to require the Partnership to incur or increase the amount of “recourse” indebtednessRecourse Liabilities, if any, to which the Protected Properties are subject, provided, however, provided that the Partnership maintains at the same time in place sufficient other “recourse” indebtedness Recourse Liabilities to cover the aggregate amounts Aggregate DRO Amount, if any, from time to time and does not take any actions (or cause or permit such actions to be taken) that would decrease the amount of such Recourse Liabilities that are allocable to the Protected Partners under Section 752 of the Code as a result of any such DRO of all partners of the Partnershipentered into by such Protected Partner.

Deficit Restoration Obligation. In the event a Protected Partner has elected to enter into a DRO, the Partnership will maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to or greater than the sum of the total amount of “DRO Amounts” (as defined in the DRO Partnership Agreement) of all Protected Partners (plus, the total amount of the DRODRO Amounts, if any, of other partners in the Partnership). Except as required by a change in law or regulation (or administrative interpretations thereof), the The deficit restoration obligation evidenced thereby shall be conclusively presumed to cause the Protected Partner to be allocated an amount of liabilities equal to the amount of the DRO Amount of such Protected Partner for purposes of Sections 465 and 752 of the Code, provided that (1) the Partnership maintains an amount of debt that is considered “recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the General Partner) equal to the aggregate amounts of the DRO Amounts of all partners of the Partnership and (2) all other terms and conditions of the Partnership Agreement with respect to such deficit restoration obligation are ACTIVE 203305734v.1 met. For the avoidance of doubt, the purpose of this Section 3.8 is not to require the Partnership to incur or increase the amount of “recourse” indebtedness, if any, to which the Protected Properties are subject, provided, however, that the Partnership maintains at the same time sufficient other “recourse” indebtedness to cover the aggregate amounts of the DRO Amounts of all partners of the Partnership.