Initial Capital Account Clause Samples
The Initial Capital Account clause defines the starting balance of each partner's capital account in a partnership or LLC. This balance typically reflects the value of cash, property, or other contributions made by each member at the formation of the entity. The clause ensures that each partner's financial stake is clearly recorded from the outset, providing a transparent basis for tracking future allocations, distributions, and adjustments. Its core function is to establish a clear and agreed-upon record of each member's initial investment, thereby preventing disputes and ensuring accurate accounting throughout the life of the business.
Initial Capital Account. The initial balance of the Capital Account of each Beneficial Owner shall be such Beneficial Owner’s Initial Contribution.
Initial Capital Account. The initial balance of the Capital Account of each Member shall be such Member’s Initial Contribution.
Initial Capital Account. The initial Capital Account with respect to each TexNew Mex Unit will be equal to $1,000.
Initial Capital Account. The Capital Account with respect to each Class B Unit as of December 4, 2015 shall equal the Class B Target Capital Amount as of such date.
Initial Capital Account. The initial Capital Account with respect to each Class C Unit will be equal the Class C Unit Issue Price.
Initial Capital Account. The initial capital account with respect to each Class M Unit will be equal to the purchase price as set forth in the Contribution and Assumption Agreement, divided by the number of Class M Units issued to ETP Holdco.
Initial Capital Account. The initial capital account with respect to each Class F Unit will be equal to its Issue Price minus its proportionate share of the principal amount of any public indebtedness of the Company assumed by the Partnership.
Initial Capital Account. The initial capital account with respect to each Class K Unit was determined in accordance with Section 5.4(a).
Initial Capital Account. The initial Capital Account balance with respect to each Series A Preferred Unit will be equal to the Series A Preferred Unit Issue Price.
Initial Capital Account. The initial capital account with respect to each Class H Unit will be equal to the capital account of the Common Unit for which such Class H Unit was exchanged pursuant to the Exchange and Redemption Agreement.