Deficit Restoration Obligation definition

Deficit Restoration Obligation or “DRO” means a written obligation by a Protected Partner to become a “DRO Partner” as defined in the Partnership Agreement.

Deficit Restoration Obligation means a written obligation by a Protected Partner to restore part or all of its deficit capital account in the Partnership upon the occurrence of certain events (which written obligation may provide for an indemnity in favor of the REIT as general partner of the Partnership).

Deficit Restoration Obligation means, for each Partner, the sum of (i) any amounts which such Partner is obligated to restore to the Partnership in accordance with the provisions of Sections 1.704-1(b)(2)(ii)(c), 1.704-1(b)(2)(ii)(h) or any other applicable provisions of the Allocation Regulations, (ii) such Partner's Share of Partnership Minimum Gain if any, and (iii) such Partner's Share of Partner Nonrecourse Debt Minimum Gain, if any.

Examples of Deficit Restoration Obligation in a sentence

• The Partnership will maintain an amount of indebtedness of the Partnership that is considered “recourse” indebtedness (taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the general partner) equal to or greater than the sum of the amounts subject to a Deficit Restoration Obligation of all Protected Partners and other partners in the Partnership.

• The Borrower will notify the Agent and any Protected Partner (as defined in the Tax Protection Agreement) in writing at any time it is required to provide an opportunity to any Protected Partner to either (i) guarantee Qualified Guarantee Indebtedness (as defined in the Tax Protection Agreement), or (ii) enter into a Deficit Restoration Obligation (as defined in the Tax Protection Agreement) as required under Article 3 of the Tax Protection Agreement.

• The Partnership will use commercially reasonable efforts to maintain an amount of indebtedness of the Partnership that would be considered “recourse” indebtedness (taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the general partner) equal to or greater than the sum of the amounts subject to a Deficit Restoration Obligation of all Protected Partners and other partners in the Partnership.

• In 1994, CCEP/2 made a demand on certain other partners of Broad & Locust Associates for the amount of the Deficit Restoration Obligation ("DRO") as defined in the Broad & Locust Associates Second Amended and Restated Partnership Agreement entered into in July 1984 by CCEP/2 and certain other partners.

• The Class A Member will have a Deficit Restoration Obligation Cap of 35% (the “DRO Cap”) of its investment.

More Definitions of Deficit Restoration Obligation

Deficit Restoration Obligation or “DRO” means a written obligation by a Protected Partner, entered into in accordance with the provisions of Article III, pursuant to which such Protected Partner undertakes to restore a limited amount (equal to the DRO Amount of such DRO) of any deficit in its Capital Account balance in the Operating Partnership in accordance with any applicable requirements of Treasury Regulations Section 1.704-1(b)(2)(ii)(c). For the avoidance of doubt, such an obligation shall be treated as a DRO only to the extent that the corresponding DRO Amount is recognized as a limited deficit restoration obligation of the Protected Partner with respect to the Operating Partnership for purposes of Treasury Regulations Section 1.704-1(b)(2)(iv)(d)(2) (disregarding for this purpose any limitation imposed by Treasury Regulations Section 1.752-2(k)).

Deficit Restoration Obligation means an unconditional agreement by a Limited Partner to restore a deficit balance in its Capital Account (which may be limited in amount) in the form thereof used by the Partnership. Any Limited Partner may, but is not obligated to, enter into such an agreement at any time during the term hereof but not more often than annually.

Deficit Restoration Obligation means, with respect to any Member at the end of any Fiscal Year, the amount such Member is obligated to restore under applicable law or pursuant to any provision of this Agreement on account of a deficit balance in such Member's Capital Account or is deemed obligated to restore under Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Treasury Regulations (determined after taking into account any changes in the Minimum Gain and the Member Minimum Gain during such Fiscal Year).

Deficit Restoration Obligation means, with respect to any Tax Equity Partnership, the obligation of a Class A Member to restore any deficit in its capital account.

Deficit Restoration Obligation. For each Partner, the sum of (i) any amounts which such Partner is obligated to restore to the Partnership in accordance with the provisions of Sections 1.704-1(b)(2)(ii)(c), 1.704-1(b)(2)(ii)(h) or any other applicable provisions of the Allocation Regulations, (ii) such Partner's Share of Partnership Minimum Gain, if any, (iii) such Partner's Share of Partner Nonrecourse Debt Minimum Gain, if any, and (iv) any amounts which such Partner is obligated to restore to the Partnership under Section 5.16 of this Agreement.

Deficit Restoration Obligation means, for each Member, the sum of: (i) any amounts that such Member is obligated to restore to the Company in accordance with the provisions of Sections 1.704-1(b)(2)(ii)(c), 1.704-1(b)(2)(ii)(h), or any other applicable provisions of the Allocation Regulations; (ii) such Member’s share of Partnership Minimum Gain if any; and (iii) such Member’s share of Partner Nonrecourse Debt Minimum Gain, if any.

Deficit Restoration Obligation or “DRO” means a written obligation by a Protected Partner to restore part or all of its deficit capital account in the Operating Partnership upon the occurrence of certain events (which written obligation may provide for an indemnity in favor of the general partner of the Operating Partnership).6 “Effective Date” has the meaning set forth in the Preamble. “Final Determination” means (i) a decision, judgment, decree or other order by any court of competent jurisdiction, which decision, judgment, decree or other order has become final after all allowable appeals by either party to the action have been exhausted or after the time for filing such appeals has expired, (ii) a binding settlement agreement entered into in connection with an administrative or judicial proceeding (iii) the expiration of the time for instituting a claim for refund, or if such a claim was filed, the expiration of the time for instituting suit with respect thereto or (iv) the expiration of the time for instituting suit with respect to a claimed deficiency. “Founders Shares” means the common shares denoted in the Caliber REIT Charter as Class A shares. “Guaranteed Amount” means, with respect to any Guaranteed Debt and any Partner Guarantor, the aggregate amount of such Guaranteed Debt that is guaranteed by such Partner Guarantor and for which such Partner Guarantor is treated as having “economic risk of loss” for purposes of Treasury Regulations Section 1.752-2 as a result of such guarantee. “Guaranteed Debt” means any loan existing, incurred or assumed by the Operating Partnership or any Subsidiaries treated for U.S. federal income tax purposes as a partnership or entity disregarded as 6 [NTD: BDO schedule to be attached showing the required minimum current and continued debt maintenance for the entire Tax Protection Period.]