Common use of Treatment of Negative Book Capital Account Balance Clause in Contracts

Treatment of Negative Book Capital Account Balance. If a Holder has a negative balance in its Book Capital Account following the liquidation of its Interest, as determined after taking into account all capital account adjustments for the Fiscal Year during which the liquidation occurs, then such Holder shall restore the amount of such negative balance to the Trust by the later of the end of the Fiscal Year or 90 days after the date of such liquidation so as to comply with the requirements of Treasury Regulations Section 1.704-1(b)(2)(ii)(b)(3). Such amount shall, upon liquidation, be paid to creditors of the Trust or distributed to other Holders in accordance with their positive Book Capital Account balances.

Treatment of Negative Book Capital Account Balance. If a Holder Member has a negative balance in its Book Capital Account balance following the liquidation of its InterestShares, as determined after taking into account all capital account adjustments for of the Fiscal Year during which the liquidation occurs, then such Holder Member shall (and is unconditionally obligated to) restore the amount of such negative balance to the Trust Fund by the later of the end of the such Fiscal Year or 90 days after the date of such liquidation so as to comply with the requirements of Treasury Regulations Section 1.704-1(b)(2)(ii)(b)(3)liquidation. Such amount shall, upon liquidationon liquidation of the Fund, be paid to its creditors of the Trust or distributed to other Holders Members in accordance with their positive Book Capital Account balances.