Common use of Reallocation to Avoid Excess Deficit Balances Clause in Contracts

Reallocation to Avoid Excess Deficit Balances. Notwithstanding any other provisions of the Agreement, no Loss shall be allocated to any Member to the extent that such allocation would cause or increase an Excess Deficit Balance in the Capital Account of such Member. Such Loss shall be reallocated away from such Member and to the other Members in accordance with the Agreement, but only to the extent that such reallocation would not cause or increase Excess Deficit Balances in the Capital Accounts of such other Members.