Common use of Return of Distributions to Limited Partners Clause in Contracts

Return of Distributions to Limited Partners. In accordance with applicable law, a limited partner of a partnership may, under certain circumstances, be required to return to the partnership for the benefit of partnership creditors, amounts previously distributed to such limited partner as a return of capital. It is the intent of the Partners that any Distributions to any Limited Partners pursuant to Article VI hereof, to the extent possible, shall not be deemed a return or withdrawal of capital, and that no Limited Partner shall be obligated to pay any such amount to or for the account of the Partnership or any creditor of the Partnership. However, if a court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited Partner is obligated to make such payment, that obligation shall be the obligation of such Limited Partner and not of the General Partner.

Return of Distributions to Limited Partners. In accordance with applicable law, a limited partner of a partnership may, under certain circumstances, be required to return to the partnership for the benefit of partnership creditors, amounts previously distributed to such limited partner as ,a return of capital. It is the intent of the Partners that any Distributions to any Limited Partners pursuant to Article VI hereof, to the extent possible, shall not be deemed a return or withdrawal of capital, and that no Limited Partner shall be obligated to pay any such amount to or for the account of the Partnership or any creditor of the Partnership. However, if a court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited Partner is obligated to make such payment, that obligation shall be the obligation of such Limited Partner and not of the General Partner.