Common use of Restriction on Distributions Clause in Contracts

Restriction on Distributions. No distribution shall be made if, after giving effect to the distribution: (i) the LLC would not be able to pay its debts as they become due in the usual course of business or (ii) the LLC's total assets would be less than the sum of its total liabilities plus, unless this Agreement provides otherwise, the amount that would be needed, if the LLC were to be dissolved at the time of the distribution, to satisfy the preferential rights of other Members, if any, upon dissolution that are superior to the rights of the 'Member receiving the distribution.

Restriction on Distributions. No distribution shall be made if, after giving effect to the distribution: (i) the LLC would not be able to pay its debts as they become due in the usual course of business or (ii) the LLC's ’s total assets would be less than the sum of its total liabilities plus, unless this Agreement provides otherwise, the amount that would be needed, if the LLC were to be dissolved at the time of the distribution, to satisfy the preferential rights of other Members, if any, upon dissolution that are superior to the rights of the 'Member receiving the distribution.

Restriction on Distributions. No distribution shall be made if, after giving effect to the distribution: (i) the LLC : a. The Company would not be able to pay its debts as they become due in the usual course of business or (ii) the LLCbusiness. b. The Company's total assets would be less than the sum of its total liabilities plus, unless this Agreement provides otherwise, the amount that would be needed, if the LLC Company were to be dissolved at the time of the distribution, to satisfy the preferential rights of other Members, if any, upon dissolution that are superior to the rights of the 'Member receiving the distribution.