Distribution and Withdrawals Sample Clauses
The 'Distribution and Withdrawals' clause defines how and when profits or assets can be distributed to members or shareholders, as well as the procedures for withdrawing funds from the entity. It typically outlines the timing, method, and conditions under which distributions are made, such as requiring unanimous consent or specifying periodic payments, and may set limits to ensure the entity retains sufficient capital. This clause ensures transparency and fairness in the allocation of profits, while also protecting the financial stability of the organization by regulating withdrawals.
Distribution and Withdrawals. Borrower will not distribute any profits, make any loans except for extensions of trade credit in the ordinary course of business, declare or pay any dividends, distribute earnings, allow any draws, or make other cash distributions to its members on account of Membership Economic Interests or apply any assets to the redemption, retirement, purchase or other acquisition of any such equity interests; provided however if no Event of Default or Potential Default shall exist following completion of Borrower’s audit for the fiscal years ending 2007 and 2008, respectively, Borrower may pay dividends and distributions within 120 days following the close of the prior fiscal year, not to exceed 40% of the net profit for said previous fiscal year less all payments on subordinated debt, so long as Borrower remains in compliance with required financial covenants on a post distribution basis. For fiscal years ending 2009 and thereafter, Borrower may pay dividends and distributions which exceed 40% of the net profit if Borrower has made the Excess Cash Flow payment for said fiscal year and so long as Borrower remains in compliance with required financial covenants on a post distribution basis. Borrower hereby represents and warrants to the Lender that, after giving effect to this Amendment, (i) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents and (ii) the representations and warranties set forth in the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date). Borrower hereby ratifies the Credit Agreement as amended and acknowledges and reaffirms (i) that it is bound by all terms of the Credit Agreement applicable to it and (ii) that it is responsible for the observance and full performance of its respective obligations. Borrower hereby certifies that the person(s) executing this Amendment on behalf of Borrower is/are duly authorized to execute such document on behalf of Borrower and that there have been no changes in the name, ownership, control, organizational documents, or legal status of the Borrower since the last application, loan, or loan servicing action; that all resolutions, powers and authorities remain in full force and effect, and that the information provided by Borrower is and remains true and correct. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an or...
Distribution and Withdrawals. Borrower will not distribute any profits, make any loans, declare or pay any dividends, distribute earnings, allow any draws, or make other distributions to its members of Borrower or apply any assets to the redemption, retirement, purchase or other acquisition of any such equity interests; however if no Event of Default or Potential Default shall exist following completion of Borrower’s audit, Borrower may pay dividends and distributions within 120 days following the close of the prior fiscal year, not to exceed 40% of the net profit for said previous fiscal year, so long as Borrower remains in compliance with required financial covenants on a post distribution basis. For fiscal years ending 2008 and thereafter, Borrower may pay dividends and distributions which exceed 40% of the net profit if Borrower has made the Excess Cash Flow payment for said fiscal year and so long as Borrower remains in compliance with required financial covenants on a post distribution basis.
Distribution and Withdrawals. Borrower will not distribute any profits, make any loans, declare or pay any dividends, distribute earnings, allow any draws, or make other distributions to its shareholders or equity holders of Borrower or apply any assets to the redemption, retirement, purchase or other acquisition of any such equity interests. However, if no Event of Default exists or Potential Default shall arise from such payments and distributions, Borrower may pay dividends and distributions so long as the Working Capital remains above $9,000,000.00 on a post-distribution basis.
Distribution and Withdrawals. Borrower will not distribute any profits, make any loans, declare or pay any dividends, distribute earnings, allow any draws, or make other distribution to its shareholders or equity holders of Borrower or apply any assets to the redemption, retirement, purchase or other acquisition of any such equity interests without the consent of Lender; however if no Event of Default or Potential Default shall exist, Borrower may pay dividends and distributions in an amount up to 75% of prior year’s net income, so long as Borrower has Working Capital above $18,000,000.00 post distribution. The combined distributions for 2021 and 2022 shall be limited to 75% of the combined net income of 2020 and 2021.
Distribution and Withdrawals. Borrower will not distribute any profits, make any loans, declare or pay any dividends, distribute earnings, allow any draws, or make other distribution to its shareholders or equity holders of Borrower or apply any assets to the redemption, retirement, purchase or other acquisition of any such equity interests without the consent of Lender; however if no Event of Default or Potential Default shall exist, Borrower may pay dividends and distributions so long as Borrower has Working Capital above $20,000,000.00 post distribution. The planned distribution to Lake Area Corn Processors, LLC for additional investment in Guardian ▇▇▇▇▇▇▇▇▇ will be allowed for up to $53,000,000.00. Borrower hereby represents and warrants to the Lender that, after giving effect to this Amendment, (i) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents and (ii) the representations and warranties set forth in the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date). Borrower hereby ratifies the Credit Agreement as amended and acknowledges and reaffirms (i) that it is bound by all terms of the Credit Agreement applicable to it and (ii) that it is responsible for the observance and full performance of its respective obligations. Borrower hereby certifies that the person(s) executing this Amendment on behalf of ▇▇▇▇▇▇▇▇ is/are duly authorized to execute such document on behalf of Borrower and that there have been no changes in the name, ownership, control, organizational documents, or legal status of the Borrower since the last application, loan, or loan servicing action; that all resolutions, powers and authorities remain in full force and effect, and that the information provided by Borrower is and remains true and correct. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. Delivery of executed counterparts of this Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEBRASKA. A CREDIT AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE UNDER NEBRASKA LAW. TO PROTECT YOU AND US FROM ANY MISUNDERSTANDINGS OR DISAPPOINTMENTS, ANY CONTR...