Loans to the Company. In the event the Manager determines that funds are reasonably necessary for maintaining and protecting the Property of the Company or conducting its business, the Manager shall be authorized to borrow funds on behalf of the Company on commercially reasonable terms from a commercial lending institution or from one or more of the Members. No Member shall be required to make any loans to the Company. To the extent any borrowing from Members is approved by the Manager, the Members may be permitted to make loans to the Company if and to the extent they so desire, the Managers have approved the same, and the Company requires such funds, as determined by the Manager in its sole discretion. In such event, the Members shall have the opportunity (but not the obligation) to participate in such Member loans on a pro rata basis in accordance with their Ownership Percentages, and the security (if any) for such Member loans shall be as nearly equal as possible among the lending Members based upon the respective amounts lent by each Member. The making of any loan by a Member shall not create any additional fiduciary duty as between the Member and the Company and shall not otherwise restrict the right to foreclose, or restrict any other legal remedies which may be exercised by the Member as may be provided to a third party creditor under law. Any loan made by a Member shall not be treated as a Capital Contribution for any purpose under this Agreement, nor shall any such loan entitle a Member to any increase in his or her share of the Profits or Losses of, or the distributions from the Company. Any loan from a Member shall be repayable on the terms and conditions and shall bear interest at the rate agreed to by the Manager and lending Member.
Appears in 7 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
