Common use of Establishing and Maintaining Capital Accounts Clause in Contracts

Establishing and Maintaining Capital Accounts. A Capital Account will be established for each Member and will be maintained at all times during the Company’s existence in compliance with the Code and Treasury Regulations. Each Capital Account will be maintained according to the following provisions.

Establishing and Maintaining Capital Accounts. A Capital Account will be established for each Member and will be maintained at all times during the CompanyLLC’s existence in compliance with the Code and Treasury Regulations. Each Member’s Capital Account will be created with an initial credit equal to the Fair Market Value of the property contributed by the Member in exchange for the Member’s interest in the amount described on the Schedule of Members. Each Capital Account will be maintained according to the following provisions.