Common use of Limitation on Loss Allocations Clause in Contracts

Limitation on Loss Allocations. With respect to any Shareholder, notwithstanding the provisions of Section 6.1(b), the amount of Loss for any Fiscal Year that would otherwise be allocated to a Shareholder under Section 6.1(b) shall not be so allocated if to do so would cause or increase a deficit balance in such Shareholder's Capital Account in excess of such Shareholder's share of Fund Minimum Gain (including such Shareholder's share of Shareholder Nonrecourse Debt Minimum Gain) plus his exposure with respect to debt or other obligations or liabilities of the Fund as of the last day of such Fiscal Year. Any Loss in excess of the limitation set forth in the preceding sentence shall be allocated among the Shareholders, pro rata, to the extent each, respectively, is liable or exposed with respect to any debt or other obligations or liabilities of the Fund. For purposes of this Section 6.7(f), a Shareholder's Capital Account shall be computed as of the last day of such Fiscal Year in the manner provided in Section 6.1 or 6.2 (as applicable), but shall be reduced for the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

Limitation on Loss Allocations. With respect to any Shareholder, notwithstanding the provisions of Section 6.1(b)6.2, the amount of Loss for any Fiscal Year that would otherwise be allocated to a Shareholder under Section 6.1(b) 6.2 shall not be so allocated if to do so would cause or increase a deficit balance in such Shareholder's Capital Account in excess of such Shareholder's share of Fund Minimum Gain (including such Shareholder's share of Shareholder Nonrecourse Debt Minimum Gain) plus his exposure with respect to debt or other obligations or liabilities of the Fund as of the last day of such Fiscal Year. Any Loss in excess of the limitation set forth in the preceding sentence shall be allocated among the Shareholders, pro rata, to the extent each, respectively, is liable or exposed with respect to any debt or other obligations or liabilities of the Fund. For purposes of this Section 6.7(f6.5(f), a Shareholder's Capital Account shall be computed as of the last day of such Fiscal Year in the manner provided in Section 6.1 or 6.2 (as applicable)6.1, but shall be reduced for the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6).