Common use of No Obligation to Restore Negative Capital Account Balance Upon Liquidation Clause in Contracts

No Obligation to Restore Negative Capital Account Balance Upon Liquidation. Notwithstanding anything to the contrary contained in this Agreement other than Section 11.5, and notwithstanding any custom or rule of law to the contrary, to the extent that a deficit, if any, in the Capital Account of any Unit Holder results from or is attributable to deductions or losses of the Company (including non-cash items such as amortization or depreciation), or Distributions of money or other property pursuant to this Agreement to Unit Holders, such deficit shall not be an asset of the Company and such Unit Holder shall not be obligated to contribute such amount to the Company to bring the balance of such party's Capital Account to zero.

Appears in 3 contracts

Samples: Limited Liability Company Agreement (Luna Azul Development Fund, LLC), Limited Liability Company Agreement (Luna Azul Development Fund, LLC), Limited Liability Company Agreement (Luna Azul Development Fund, LLC)

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No Obligation to Restore Negative Capital Account Balance Upon Liquidation. Notwithstanding anything to the contrary contained in this Agreement other than Section 11.5Article XI, and notwithstanding any custom or rule of law Law to the contrary, to the extent that a deficit, if any, in the Capital Account of any Unit Holder Member results from or is attributable to deductions or losses of the Company (including non-cash items such as amortization amortization, depreciation, or depreciationdepletion), or Distributions of money or other property pursuant to this Agreement to Unit HoldersMembers, such deficit shall not be an asset of the Company and such Unit Holder Member shall not be obligated to contribute such amount to the Company to bring the balance of such party's ’s Capital Account to zero.

Appears in 1 contract

Samples: Operating Agreement (Caladrius Biosciences, Inc.)

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