Common use of Liability For Repayment of Distributions Clause in Contracts

Liability For Repayment of Distributions. The Members acknowledge and agree that pursuant to § 18-607(c) of the Act, a member of a limited liability company who receives a distribution from a limited liability company is liable for a period of three (3) years following such distribution to return the distribution to the limited liability company if an action to recover such distribution is commenced prior to the expiration of such three (3)-year period, and an adjudication at liability is made against such member in such action. The Management Committee does not intend to make a distribution of Net Available Cash Flow to the Members if any such distribution would be required to be returned by the Members in accordance with the foregoing.