Restoration of Deficit Capital Account Balances Sample Clauses
The "Restoration of Deficit Capital Account Balances" clause requires a partner whose capital account falls below zero to restore the deficit, typically by contributing additional funds to the partnership. In practice, this means that if a partner’s share of losses or distributions causes their capital account to become negative, they are obligated to make payments to bring their balance back to zero, often upon liquidation or dissolution of the partnership. This clause ensures that the partnership is not left with unrecoverable losses due to negative capital accounts, thereby protecting the financial integrity of the partnership and ensuring that all partners are accountable for their share of obligations.
Restoration of Deficit Capital Account Balances. If upon liquidation of the Fund, any general partner has a deficit balance in its Capital Account (after taking into account all Capital Account adjustments for the Fund’s taxable fiscal year in which the liquidation occurs), such General Partner will contribute cash or securities to the Fund by the end of such taxable fiscal year (or, if later, within ninety (90) days after the date of such liquidation) in an amount equal to such deficit Capital Account balance. If any Limited Partner has a deficit balance in such Partner’s Capital Account (after taking into account all Capital Account adjustments for the Fund’s taxable fiscal year in which the liquidation occurs), such Limited Partner will have no obligation to make any contribution to the capital of the Fund with respect to such deficit, and such deficit will not be considered a debt owed to the Fund or to any other person for any purpose whatsoever.
Restoration of Deficit Capital Account Balances. If any Partner has a deficit balance in its, his or her Capital Account (after giving effect to all contributions, distributions, and allocations for all Fiscal Years, including the year during which the liquidation occurs), then such Partner shall have no obligation to make any Capital Contribution with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any purpose whatsoever.
Restoration of Deficit Capital Account Balances. The ----------------------------------------------- Member shall not be required to restore to the Company or to any other party (on liquidation or otherwise) any deficit balance in its capital account.
Restoration of Deficit Capital Account Balances. If any Member has a deficit balance in such Member’s Series Capital Account (after taking into account all Series Capital Account adjustments for AVGF’s taxable fiscal year in which the liquidation occurs), such Member will have no obligation to make any contribution to the capital of the Series or AVGF with respect to such deficit, and such deficit will not be considered a debt owed to the Series or Company or to any other person for any purpose whatsoever.
Restoration of Deficit Capital Account Balances. The Limited Partners shall be required to restore any deficit in their respective Capital Accounts within thirty (30) days after receiving notice thereof from either General Partner. If any Limited Partner (the “Defaulting Partner”) shall fail to restore any deficit in its respective Capital Account within such thirty (30) day period, such failure shall be treated in the same manner as a default in making an Additional contribution and either General Partner may exercise any or all of the remedies provided in Section 2.4 hereof on behalf of the other Partners (the “Non-Defaulting Partners”) by giving written notice to the Defaulting Partner.
Restoration of Deficit Capital Account Balances. No Partner shall have any obligation to restore any deficit in its Capital Account or to make any other contribution to the Partnership, except as provided in Section 5.1.
Restoration of Deficit Capital Account Balances. If any Member has a deficit balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all Fiscal Years, including the year during which the liquidation occurs), then such Member shall have no obligation to make any Capital Contribution with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or to any other Person for any purpose whatsoever.
Restoration of Deficit Capital Account Balances. Each Partner s all be required to restore any deficit in his or its Capital Account within thirty (30) days after receiving notice thereof from the General Partner. This provision of this Agreement shall not give any Person not a party to this Agreement the right to bring any action or claim against the General Partner or any other Partner to require that any deficit in any Capital Account be restored.