Source of Distributions. To the extent permitted by Section 1.704-2(h)(3) of the Regulations, the Managers shall endeavor to treat cash distributions to Members as having been made from the proceeds of Nonrecourse Liabilities or Member Nonrecourse Debt only to the extent that such distributions would cause or increase an Adjusted Capital Account Deficit for any Member.
Appears in 6 contracts
Samples: Limited Liability Company Operating Agreement (Decrane Holdings Co), Limited Liability Company Operating Agreement (Decrane Holdings Co), Limited Liability Company Operating Agreement (Decrane Holdings Co)