Permitted W ithdrawals Clause Samples
The "Permitted Withdrawals" clause defines the specific circumstances and conditions under which funds may be withdrawn from a designated account or financial arrangement. Typically, this clause outlines what types of withdrawals are allowed, such as payments for approved expenses, distributions to certain parties, or transfers that comply with agreed-upon purposes. By clearly specifying when and how withdrawals can occur, the clause helps prevent unauthorized use of funds and ensures that all parties understand the limitations and permissions regarding access to the account, thereby reducing the risk of disputes or misuse.
Permitted W ithdrawals. (a) Subject to the limitations contained in this Section 8.4, each Limited Partner may withdraw all or any part of its Capital Account (subject to such minimum withdrawal requirements as may be established from time to time by the General Partner) effective on the last day of each calendar year after allocations o f Net Profits or Net Losses as of such date. Any Limited Partner desiring to make a withdrawal from its Capital Account shall, no less than 60 days before the date on which such withdrawal is to be made, give written notice to the Partnership of such Limited Partner’s intention to make such withdrawal and the amount o f such withdrawal (or the manner in which the amount of such withdrawal is to be determined); provided, however, that the General Partner, in its sole discretion, may waive such notice requirement in the event of extreme hardship to the withdrawing Limited Partner.
(b) The General Partner may withdraw all or any part of its Capital Account as of the last day of each Fiscal Period after allocations of Net Profits or Net Losses as o f such date.
(c) Except as provided in Section 8.4(f), withdrawal proceeds shall be sent to the applicable Limited Partner within 45 business days following the effective date of such withdrawal.
(d) No Limited Partner may withdraw any portion o f its Capital Account prior to the first anniversary o f such Limited Partner’s initial Capital Contribution to the Partnership. If a Limited Partner withdraws his or her entire Capital Account balance (a “Complete W ithdrawal”), any further Capital Contribution thereafter shall be deemed such Limited Partner’s initial Capital Contribution for purposes o f this subsection (d).
(e) No Limited Partner may effect a withdraw from its Capital Account, other than with respect to a Complete W ithdrawal, which reduces such Limited Partner’s Capital Account balance below minimum initial Capital Contribution amounts as may be established by the General Partner in its sole discretion; provided, however, that the General Partner may, in its sole discretion, waive minimum Capital Account balances with respect to certain Limited Partners.
(f) The General Partner may, in its sole discretion, suspend the right of withdrawal or postpone the date o f payment o f withdrawal proceeds for any period during which (i) any stock exchange or over-the-counter market is closed or trading on such exchange or market is restricted or suspended, (ii) there exists a state of affairs such that it ...