Default Preferred Return definition

Default Preferred Return means, for each Partner, the cumulative amount that accrues on the balance of its Default Capital Contribution Balance at a rate equal to the greater of (a) 14% per annum and (b) the sum of the Prime Rate plus 5% per annum (in either case, compounded on the last day of each calendar year).
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Default Preferred Return shall have the meaning given to it in Section 3.2(c).
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Default Preferred Return. A variable rate per annum equal to the highest "prime rate" as published from time to time by the Wall Street Journal (or a comparable publication if it is no longer being published) plus 8%, compounded annually, but in no event greater than is permitted by applicable law.
Sample 1

Examples of Default Preferred Return in a sentence

  • In such a transaction there shall be made such adjustments to the Members' Default Capital, accrued Default Preferred Return, Adjusted Capital and Capital Accounts as would have been made if Company Proceeds were Capital Proceeds, the Distributable Capital Proceeds of which were distributed (with applicable Company retentions) pursuant to SECTION 5.7.2.

  • Capital proceeds, with respect to any capital transaction as defined per the Agreement, and proceeds in liquidation shall be distributed to the Members in the following order: first, pro rata, in payment of their respective Default Preferred Return Balances, if any, until balances have been reduced to zero.

  • Upon any Shortfall Redemption the Contribution Amount shall be treated as Initial Cash Contribution or Additional Contribution, as applicable, for the Contributing Member and the Shortfall Contribution shall be treated as Initial Cash Contributions or Additional Contributions, as applicable, for the Non-Contributing Member, in each case, as of the date the Shortfall Amount was contributed by the Contributing Member and no further Default Preferred Return will accrue thereon.

  • Each Non-Contributing Member will have a period of six (6) months (the "REDEMPTION PERIOD") from the later of the date on which capital to be contributed pursuant to a Capital Call was due and payable (the "CALL DATE") or the date the Contributing Member makes a Shortfall Contribution, to make its capital contribution by paying (a "SHORTFALL REDEMPTION") an amount to the Contributing Member equal to the amount of Shortfall Contribution plus a return thereon at a rate equal to the Default Preferred Return.

  • All or a portion of the remaining items of Company gross income or gain, if any, shall be specifically allocated to the Preferred Member to the extent of (i) its Default Preferred Return and its Preferred Return on its Initial Capital Contributions, over (ii) the cumulative items of gross income and gain allocated to the Preferred Member pursuant to this Section 16.4(f).

  • In the event a Contributing Member elects to convert such Default Capital into Adjusted Capital, it will not be entitled to any Default Preferred Return it otherwise would have been entitled to receive with regard to such Default Capital after the date the Contributing Member elects to make such conversion.


More Definitions of Default Preferred Return

Default Preferred Return is defined in Section 2.2(c).
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Related to Default Preferred Return

  • Preferred Return has the meaning specified in the Prior LLC Agreement.

  • Preferred Dividends means, for any period and without duplication, all Restricted Payments paid during such period on Preferred Equity Interests issued by the Parent or a Subsidiary. Preferred Dividends shall not include dividends or distributions (a) paid or payable solely in Equity Interests (other than Mandatorily Redeemable Stock) payable to holders of such class of Equity Interests, (b) paid or payable to the Parent or a Subsidiary, or (c) constituting or resulting in the redemption of Preferred Equity Interests, other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

  • Senior Non Preferred Liabilities means any unsubordinated and unsecured senior non preferred obligations (créditos ordinarios no preferentes) of Banco Santander under Additional Provision 14.2º of Law 11/2015 (including any senior non preferred debt securities) and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities.