Return of Initial Contribution Clause Samples
The 'Return of Initial Contribution' clause establishes the conditions under which an investor or member is entitled to receive back their original capital contribution to a business or partnership. Typically, this clause outlines the timing, process, and any limitations or requirements for returning the initial funds, such as upon dissolution of the entity or after certain financial obligations are met. Its core practical function is to protect the interests of contributors by ensuring they have a clear right to recover their initial investment under specified circumstances, thereby reducing financial risk and providing certainty regarding capital recovery.
Return of Initial Contribution. Immediately after the initial deposit of Deposited Shares pursuant to Section 2.4, the Voting Trustee will return the initial contribution set forth in Section 2.1 to the Corporation.
Return of Initial Contribution. As of the Closing Date, after giving effect to the transactions contemplated by Section 4.3 hereof, the interest in the Partnership of the Organizational Limited Partner shall be terminated, the Capital Contribution by the Organizational Limited Partner as an initial Capital Contribution shall be refunded and the Organizational Limited Partner shall withdraw as a limited partner of the Partnership. 98% of any interest or other profit which may have resulted from the investment or other use of such initial Capital Contributions shall be allocated and distributed to the Organizational Limited Partner, the balance thereof shall be allocated and distributed to the General Partner.