Failure to Make Membership Contribution. If a Member fails to make a contribution to the Company that is required by an enforceable promise to make the contribution, the Company is entitled to take any of the following actions: Reduce the defaulting Member’s interest in the same proportion that the amount of the default bears to the total contribution of the Member. Require that the defaulting Member forfeit the Member’s interest. Subordinate the defaulting Member’s interest to that of all other Members of record. Force a sale of the defaulting Member’s interest. Determine the value of the defaulting Member’s interest by appraisal or by formula and sell the interest.
Appears in 4 contracts
Samples: Multi Member Operating Agreement, Multi Member Operating Agreement, Multi Member Operating Agreement
