Common use of Partnership Borrowing Clause in Contracts

Partnership Borrowing. (a) The General Partner may cause the Partnership to borrow money from time to time, from third parties or from the General Partner, and may mortgage or pledge Partnership property to obtain and secure the repayment of such loans. The proceeds of Partnership loans may be used for any Partnership purpose. (b) The General Partner is not, however, obligated to lend funds to the Partnership. If the General Partner loans money to the Partnership, it will receive interest at the lesser of (i) two (2) percentage points over the fluctuating per annum rate of interest reported in the Wall Street Journal as the “Prime Rate” or (ii) the maximum lawful rate that may be charged under applicable state or federal law. Loans by the General Partner to the Partnership shall be treated as indebtedness to a non-Partner lender and will be payable prior to any distributions to the Limited Partner.

Partnership Borrowing. (a) The General Partner may cause the Partnership to borrow money from time to time, from third parties or from the General Partner, and may mortgage or pledge Partnership property to obtain and secure the repayment of such loans. The proceeds of Partnership loans may be used for any Partnership purpose. (b) The General Partner is not, however, obligated to lend funds to the Partnership. If the General Partner loans money to the Partnership, it will receive interest at the lesser of (i) two (2) percentage points over the fluctuating per annum rate of interest reported in the Wall Street Journal as the “Prime Rate” or (ii) the maximum lawful rate that may be charged charted under applicable state or federal law. Loans by the General Partner to the Partnership shall be treated as indebtedness to a non-Partner lender and will be payable prior to any distributions to the Limited Partner.