Common use of Distributions Upon Termination of Trust Clause in Contracts

Distributions Upon Termination of Trust. Upon the dissolution, winding up and termination of the Trust, the Trust Property or the cash proceeds therefrom shall be distributed by the Treasurer in the following order of priority: (a) First, to creditors, including the Agent and Owner Trustee, to the extent otherwise permitted by law, in satisfaction of liabilities of the Trust (whether by payment or by making of reasonable provision for payment) in accordance with the Basic Documents other than liabilities for distributions to Owners on account of their respective interests in the Trust, and in the setting up of such reserves as the Board of Managers may reasonably deem necessary or appropriate for any contingent, conditional or unmatured liabilities or obligations of the Trust, and when all such liabilities are satisfied, the balance of such reserves, if any, shall be distributed as hereinafter provided; (b) Second, to any Owners who are creditors; and (c) Third, to the Owners in accordance with and to the extent of their respective Capital Account balances after taking into account the allocation of all Net Profits, Net Loss, Gross Income and Gross Deduction pursuant to this Agreement for the Fiscal Year in which the Trust is terminated; provided, however, that if at the time of termination there shall be one Owner, then any amount remaining after Section 6.06(a) shall be distributed to such Owner. (d) If, after giving effect to the allocations of Net Profits, Net Loss, Gross Income, Gross Deduction or credit under Article III and all contributions and distributions for all taxable years, any Owner shall have a deficit balance in such Owner’s Capital Account, such Owner shall have no obligation to restore such deficit balance, or to make any contribution to the capital of the Trust by reason thereof, and such deficit balance shall under no circumstances be considered a liability owed to the Trust.

Distributions Upon Termination of Trust. Upon the dissolution, winding up and termination of the TrustTrust (or such other date as established by the Board of Managers), the Trust Property or the cash proceeds therefrom shall be distributed by the Treasurer in the following order of priority: (a) First, to creditors, including the Administrative Agent and Owner Trustee, to the extent otherwise permitted by law, in satisfaction of liabilities of the Trust (whether by payment or by making of reasonable provision for payment) in accordance with the Basic Documents other than liabilities for distributions to Owners on account of their respective interests in the Trust, and in the setting up of such reserves as the Board of Managers may reasonably deem necessary or appropriate for any contingent, conditional or unmatured liabilities or obligations of the Trust, and when all such liabilities are satisfied, the balance of such reserves, if any, shall be distributed as hereinafter provided; (b) Second, to any Owners who are creditors; and (c) Third, to the Owners in accordance with and to the extent of their respective Capital Account balances after taking into account the allocation of all Net Profits, Net Loss, Gross Income and Gross Deduction pursuant to this Agreement for the Fiscal Year in which the Trust is terminated; provided, however, that if at the time of termination there shall be one Owner, then any amount remaining after Section 6.06(a) shall be distributed to such Owner. (d) If, after giving effect to the allocations of Net Profits, Net Loss, Gross Income, Gross Deduction or credit under Article III and all contributions and distributions for all taxable years, any Owner shall have a deficit balance in such Owner’s Capital Account, such Owner shall have no obligation to restore such deficit balance, or to make any contribution to the capital of the Trust by reason thereof, and such deficit balance shall under no circumstances be considered a liability owed to the Trust.

Distributions Upon Termination of Trust. Upon the dissolution, winding up and termination of the TrustTrust (or such other date as established by the Board of Managers), the Trust Property or the cash proceeds therefrom shall be distributed by the Treasurer in the following order of priority: (a) First, to creditors, including the Agent Lender and Owner Trustee, to the extent otherwise permitted by law, in satisfaction of liabilities of the Trust (whether by payment or by making of reasonable provision for payment) in accordance with the Basic Documents other than liabilities for distributions to Owners on account of their respective interests in the Trust, and in the setting up of such reserves as the Board of Managers may reasonably deem necessary or appropriate for any contingent, conditional or unmatured liabilities or obligations of the Trust, and when all such liabilities are satisfied, the balance of such reserves, if any, shall be distributed as hereinafter provided; (b) Second, to any Owners who are creditors; and (c) Third, to the Owners in accordance with and to the extent of their respective Capital Account balances after taking into account the allocation of all Net Profits, Net Loss, Gross Income and Gross Deduction pursuant to this Agreement for the Fiscal Year in which the Trust is terminated; provided, however, that if at the time of termination there shall be one Owner, then any amount remaining after Section 6.06(a) shall be distributed to such Owner. (d) If, after giving effect to the allocations of Net Profits, Net Loss, Gross Income, Gross Deduction or credit under Article III and all contributions and distributions for all taxable years, any Owner shall have a deficit balance in such Owner’s 's Capital Account, such Owner shall have no obligation to restore such deficit balance, or to make any contribution to the capital of the Trust by reason thereof, and such deficit balance shall under no circumstances be considered a liability owed to the Trust.