Market Value Adjustments. Appropriate Capital Account adjustments will be made upon any Transfer of any Units, including those that apply upon the constructive liquidation of the Company under § 708(b) of the Code, all in accordance with the § 704(b) Regulations. Similarly, if optional basis adjustments are made under § 734 or § 743 of the Code, appropriate Capital Account adjustments will be made as required by the § 704(b) Regulations.
Market Value Adjustments. The Tax Matters Partner is authorized and directed to make appropriate Capital Account adjustments upon any Transfer of an Ownership Interest made in accordance with this Agreement in accordance with the § 704(b) Regulations. If optional basis adjustments are made under § 734 or § 743 of the Code, the Tax Matters Partner is authorized to make appropriate Capital Account adjustments as required by the § 704(b) Regulations.
Market Value Adjustments. 17 4.7 No Withdrawal of Capital...........................................................................17 4.8 No Interest on Capital.............................................................................17 4.9
Market Value Adjustments. 9 4.4 Transfer..............................................................10 ARTICLE V -- ALLOCATION OF PROFITS AND LOSSES
Market Value Adjustments. The Members agree to make appropriate capital account adjustments upon any transfer of an Ownership Interest, including those that apply upon the constructive liquidation of the Company under ss. 708(b) of the Code, all in accordance with the ss. 704(b) Regulations.
Market Value Adjustments. 4.7 No Withdrawal of Capital.
Market Value Adjustments. Because market-value adjustments limit the investment risk assumed by insurers, application of the market value adjustment may threaten a contract's qualification for the guaranteed benefit policy exception. Under the safe harbor Rule 151, the SEC did not permit MVAs, because they may operate to reduce principal and interest amounts otherwise guaranteed. The SEC has made clear, that insurers issuing contracts with market-value adjustments may choose to rely on §3(a)(8) without Rule 151 safe harbor protection. For GICs, insurers should consider only using liability based adjustment formula. In Prohibited Transaction Exemption 81-82, the U.S. Department of Labor granted an exemption from the prohibited transaction rules for separate account GICs. The DOL did not believe that any market-value adjustment requirements were necessary for separate account GICs “so long as the adjustment is not made with reference to the investment performance of a separate account”. Asset-based market-value adjustment formulas in general account GICs may raise concerns with the DOL. In any event, the standards applicable to market-value adjustments should be the same for general account and separate account GICs. We may question an asset-based formula if the assets do not appear to closely match the contractual guarantees, especially with respect to duration. Discretion to Amend the Contract. An insurer may undermine guarantees of principal and interest if it retains too much authority to amend guarantees provided in the contract. The contract should not give the insurer discretion to change key contract terms, including retroactively amending the contract's guarantees.
Market Value Adjustments. A Market Value Adjustment may apply to the Portfolio Average Accounts and the Guaranteed Investment Accounts. A Market Value Adjustment is calculated by multiplying the balance of the account to which the Market Value Adjustment applies by the applicable Market Value Adjustment Factor.
Market Value Adjustments. In order to satisfy a request for either a transfer or cash withdrawal, it may be necessary to surrender one or more GDAs prior to the end of their investment term. This will require a Market Value Adjustment. We will only surrender the portion of a GDA required at that time. The remaining portion of that GDA is left to accumulate at the same interest rate and term in effect for that GDA from which the partial surrender was taken, subject to plan minimums. The Market Value Adjustment determines a present value for a GDA being surrendered prior to the end of its investment term. For withdrawals from the Contract the adjustment consists of discounting the projected maturity value of the GDA at the higher of the credited and the then current interest rates for the original term and band, as determined by the Company, plus one percent. For transfers within the Contract the adjustment consists of discounting the projected Maturity Value of the GDA deposit being transferred at the higher of the credited and the then current interest rates for the original term and band. A Market Value Adjustment is not applicable if a GDA is used to pay the Death Benefit.
Market Value Adjustments. In order to satisfy a request for a cash withdrawal, it may be necessary to surrender one or more GDAs prior to the end of their investment term. This will require a Market Value Adjustment. We will only surrender the portion of a GDA required at that time. The remaining portion of that GDA is left to accumulate at the same interest rate and term in effect for that GDA from which the partial surrender was taken, subject to plan minimums. The Market Value Adjustment is the difference between the Account Value and the Cash Value of a GDA. A Market Value Adjustment may not apply in the event the GDA is used to pay the Death Benefit.
