Common use of Distribution Upon Liquidation Clause in Contracts

Distribution Upon Liquidation. (a) After payment of liabilities owing to creditors, the General Partners or liquidator shall set up such reserves as they or he deems reasonably necessary for any contingent or unforeseen liabilities or obligations of the Partnership. Said reserves may be paid over by the General Partners or liquidator to a bank, to be held in escrow for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the General Partners or liquidator may deem advisable, such reserves shall be distributed to the partners or their assigns in the manner set forth in subsection (b) below. (b) After paying such liabilities and providing for such reserves, the General Partners or liquidator shall cause the remaining net assets of the Partnership to be distributed to and among the Partners in proportion to and in satisfaction of the positive balances in their capital accounts. In the event that any part of such net assets consists of notes or accounts receivable or other non-cash assets, the General Partners or liquidator shall take whatever steps they or he deems appropriate to convert such assets into cash or into any other form which would facilitate the distribution thereof.

Distribution Upon Liquidation. (a) After payment of liabilities owing to creditors, the General Partners Partner or such liquidator shall set up such reserves as they or he its deems reasonably necessary for any contingent or unforeseen liabilities or obligations of the Partnership. Said reserves may be paid over by the such General Partners Partner or such liquidator to a bank, to be held in escrow for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the such General Partners Partner or such liquidator may deem advisable, such reserves shall be distributed to the partners Partners or their assigns in the manner set forth in subsection (bSection 9.02(b) below. (b) After paying such liabilities and providing for such reserves, the General Partners Partner or liquidator shall cause the remaining net assets of the Partnership to be distributed to and among the Partners in proportion to and the order of priority set forth in satisfaction of the positive balances in their capital accountsArticle IV hereof. In the event that any part of such net assets consists of notes or accounts receivable or other non-cash assets, the General Partners Partner or liquidator shall may take whatever steps they or he it deems appropriate to convert such assets into cash or into any other form which would facilitate the distribution thereof. If any assets of the Partnership are to be distributed in kind, such assets shall be distributed on the basis of their fair market value net of any liabilities.