Non-Payment of Capital Contributions Sample Clauses

Non-Payment of Capital Contributions. In the event any Partner fails to pay its share of a Capital Contribution called for under any provision of this Article 4 on the date on which such Capital Contribution is due, such unpaid Capital Contributions shall automatically accrue interest from the date due at the Prime Plus Rate (which interest, once paid, shall not increase the Capital Account of such Partner). In addition, if such default is not cured within 5 days after written notice thereof given by the General Partner has been received by such Partner (a “Defaulting Partner”), all or any part of the following provisions shall apply: (a) The Partnership may elect, upon notice to a Defaulting Partner by the General Partner, to (i) adopt special allocations of income, gain, loss or deduction or otherwise debit such Defaulting Partner’s Capital Account balance such that such Defaulting Partner’s Capital Account Balance is reduced as soon as possible to an amount equal to 50% of the Capital Account balance existing as of the date of the default (and make a corresponding credit to the respective Capital Account balances of the non-Defaulting Partners as if the credit amount was additional income or gain of the Partnership recognized at such time) and (ii) reduce the applicable Sharing Ratios of such Defaulting Partner (and make a corresponding increase in the Sharing Ratios of the non-Defaulting Partners in proportion to their relative Sharing Ratios) to reflect a reduction in 50% of the Capital Contributions theretofore made by such Defaulting Partner. (b) The Partnership may elect, upon notice to a Defaulting Partner by the General Partner, to amend the allocations of Net Income and Net Loss and rights to receive distributions set forth in this Agreement such that such Defaulting Partner shall have no additional rights to receive allocations of Net Income from the Partnership and all Partnership distributions that would otherwise be made to such Defaulting Partner shall be paid to the non-Defaulting Partners as otherwise provided herein. (c) The Partnership may elect, upon notice to a Defaulting Partner by the General Partner, to amend the Agreement to provide that whenever the vote, election, consent or approval of such Defaulting Partner would otherwise be required or permitted under this Agreement, such Defaulting Partner shall not be entitled to participate in such vote, election, consent or approval, and such vote, election, consent or approval shall be calculated as if such Defaulting Part...
Sample 1Sample 2See All (11)
AutoNDA by SimpleDocs
Non-Payment of Capital Contributions. The Partnership shall have the right to pursue any remedy existing at law or in equity for the collection of the unpaid amount of the Capital Contributions agreed to be made in Sections 3.1 and 3.2 or hereafter elected or agreed to be made in accordance with Section 3.3, including without limitation the prosecution of a suit against a defaulting Partner.
Sample 1
Non-Payment of Capital Contributions. (a) The Partnership shall have the right to pursue any remedy existing at law or in equity for the collection of the unpaid amount of the Capital Contributions agreed to be made in Section 3.l or hereafter agreed to be made in accordance with Section 3.2, including without limitation the prosecution of a suit against a defaulting Partner. (b) The Partnership may retain any revenues otherwise distributable to a defaulting Partner pursuant to this Agreement in an amount equal to the amount such Partner failed or refused to contribute as required pursuant to the terms of this Agreement, together with interest on such past-due amounts at a rate equal to the Agreed Rate. Any amount so withheld shall be deemed, for all purposes of this Agreement, to have been distributed to the defaulting Partner and, other than that portion of such amounts representing interest, be deemed to have been recontributed by the defaulting Partner to the capital of the Partnership for the purposes for which contributions were initially requested. To the extent that a Partner has advanced funds to the Partnership as a result of the default of a Partner, such Partner shall be entitled to be reimbursed from the amounts so withheld from the defaulting Partner.
Sample 1
Non-Payment of Capital Contributions. The Partnership shall have the right to pursue any remedy existing at law or in equity for the collection of the unpaid amount of the Capital Contributions agreed to be made in SECTIONS 3.1 and 3.2 or hereafter elected or agreed to be made in accordance with SECTIONS 3.3, 3.4 and 3.5, including the prosecution of a suit against a defaulting Partner. Notwithstanding anything in this ARTICLE III or elsewhere herein to the contrary, in no event shall any Limited Partner have any obligation to make a Capital Contribution to the Partnership except to the extent that it has agreed to make a Capital Contribution to the Partnership pursuant to SECTION 3.3, SECTION 3.4 or SECTION 3.5 (and provided all conditions precedent to an agreement to make such Capital Contribution have been satisfied).
Sample 1
Non-Payment of Capital Contributions. (a) Except as otherwise provided in the following sentence, the Partnership shall have the right to pursue the remedies described in this Section 3.6 and any remedy existing at law or in equity for the collection of the unpaid amount of the Capital Contributions agreed to be made in Sections 3.1 and 3.2 or hereafter agreed to be made in accordance with Section 3.3, including the prosecution of a suit against a defaulting Partner. In the event of a default by a Partner of its obligation to make Capital Contributions with respect to its allocable share hereunder of Hedge Costs, the provisions of subsection (d) below and any guaranty of GE Capital Corporation under Section 5.7 shall be the exclusive remedies of the Partnership and the other Partner. (b) In the event that the Limited Partner fails or refuses to make when due its share of Capital Contributions, the General Partner shall be entitled (but shall not be obligated) to make such Capital Contributions to the Partnership which the Limited Partner is obligated to make and the amount so advanced shall be treated as a loan from the General Partner to the Limited Partner and shall bear interest from the date of such advance at a rate equal to the Agreed Rate. The General Partner shall notify the Limited Partner of any such advance and request payment by the Limited Partner of the amount so advanced, together with interest thereon from the date of the advance. If the Limited Partner fails or refuses to pay to the General Partner the amount so advanced, together with interest thereon from the date of the advance, and if such failure or refusal persists for a period of 30 days following notice from the General Partner to the Limited Partner, (such occurrence being called herein an “Event of Default”), the General Partner shall be entitled to proceed under this Section 3.6(b). In addition to the rights in Section 3.6(a), the Limited Partner hereby grants to the Partnership and the General Partner a lien upon and security interest in the Limited Partner’s interest in the Partnership and in or to all assets attributable to and proceeds of and from such interest in the Partnership to secure the payment of contributions required under this Agreement, and authorizes the General Partner, upon the occurrence of an Event of Default, if it elects to proceed under this alternative, to foreclose such lien or security interest in any manner provided for by the laws of the State of Texas for the foreclosure of such lien or...
Sample 1

Related to Non-Payment of Capital Contributions

  • Return of Capital Contributions No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership, except as specifically provided in this Agreement. Except as otherwise provided herein, there shall be no obligation to return to any Partner or withdrawn Partner any part of such Partner’s Capital Contribution for so long as the Partnership continues in existence.

  • Return of Capital Contribution From time to time the Partnership may have cash in excess of the amount required for the conduct of the affairs of the Partnership, and the General Partner may, with the Consent of the Special Limited Partner, determine that such cash should, in whole or in part, be returned to the Partners, pro rata, in reduction of their Capital Contribution. No such return shall be made unless all liabilities of the Partnership (except those to Partners on account of amounts credited to them pursuant to this Agreement) have been paid or there remain assets of the Partnership sufficient, in the sole discretion of the General Partner, to pay such liabilities.

  • Interest on and Return of Capital Contributions No Member shall be entitled to interest on its Capital Contribution or to return of its Capital Contribution, except as otherwise specifically provided for herein.

  • Capital Contributions Distributions 17 TABLE OF CONTENTS (continued)

  • Member Capital Contributions (Check One)

  • Members Capital Contributions a) Single-Member Capital Contributions (Applies ONLY if Single-Member): The Member may make such capital contributions (each a “Capital Contribution”) in such amounts and at such times as the Member shall determine. The Member shall not be obligated to make any Capital Contributions. The Member may take distributions of the capital from time to time in accordance with the limitations imposed by the Statutes. b) Multi-Member (Applies ONLY if Multi-Member): The Members have contributed the following capital amounts to the Company as set forth below and are not obligated to make any additional capital contributions:

  • Capital Contributions Persons seeking to become a Member shall be required to purchase or acquire Shares and make capital contributions in such forms and in such amounts and at such times as the Board may require, if any, in its sole discretion (any, a “Capital Contribution”) whereupon a capital account for a new Member will be established, and, if applicable, accreted, in the amount of such Member’s Capital Contribution or based upon the fair market value of property contributed, and the new Member shall be issued a number of Class A Ordinary Shares as determined by the Board, and the Board shall update Exhibit A attached hereto accordingly. The provisions of this Section 3.1 are solely intended for the benefit of the Members and, to the fullest extent permitted by law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such creditor shall be a third-party beneficiary of this Agreement). The Members shall have no duty or obligation to any creditor of the Company to make any contribution to the Company.

  • Limitations on Return of Capital Contributions Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return of all or part of a Partner’s Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair market value of the Partnership’s assets.

  • Capital Contributions and Distributions The Member may make such capital contributions (each a “Capital Contribution”) in such amounts and at such times as the Member shall determine. The Member shall not be obligated to make any Capital Contributions. The Member may take distributions of the capital from time to time in accordance with the limitations imposed by the Statutes.

  • No Interest on Capital Contributions Members are not entitled to interest or other compensation for or on account of their capital contributions to the Company except to the extent, if any, expressly provided in this Agreement.

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!