Maintenance of Capital Accounts definition

Maintenance of Capital Accounts. A separate capital account ("Capital Account") for each Member shall be established on the books of the Company. The capital contribution of each Member shall be credited to such Member's Capital Account. There shall be debited to each Member's Capital Account the amount of all distributions or returns of capital made to such Member and if such Member is trading the Company's proprietary account, those expenses relating thereto. Capital Accounts also shall be credited or debited with the share of profits and losses of the Company allocated to each Member provided in Article 8.1, and from any special allocation to such Member as provided in Article 8.2. Each Member's distributive share of profits and losses of the Company for any taxable year shall be determined in accordance with Article VIII hereof. Notwithstanding any provision of this Company Agreement to the contrary, the Capital Accounts of the Members shall at all times be maintained strictly in accordance with Treas. Reg 1.704-1(b)(2)(iv), as amended from time to time, and shall be adjusted as provided therein.
Sample 1

Examples of Maintenance of Capital Accounts in a sentence

  • Maintenance of Capital Accounts; Allocations and Distributions.........

  • The foregoing provisions and the other provisions of this Agreement relating to they maintenance of Capital Accounts are intended to comply with the Treasury Regulations issued Article VIII - Tax Allocations, Maintenance of Capital Accounts and Distributions of Cash Page 76 pursuant to Section 704(b) of the Code, and shall be interpreted and applied in a manner consistent with such regulations.

Related to Maintenance of Capital Accounts

  • Portion of Capital means, with respect to any Purchaser and its related Capital, the portion of such Capital being funded or maintained by such Purchaser by reference to a particular interest rate basis.

  • Cost of Capital means the Company’s weighted cost of equity plus its weighted cost of debt, expressed as a percentage, as determined by the Committee in a manner consistent with the Manual.

  • Capital Accounts An individual capital account shall be maintained for each Partner, and capital contributions to the Partnership by the Partners shall be credited to such accounts. Partnership profits or losses shall also be charged or credited to the separate capital accounts in the manner provided in this Agreement. No interest shall be paid on the capital account of any Partner.

  • Book Capital Account means, for any Holder at any time, the Book Capital Account of the Holder for such day, determined in accordance with Section 8.1 hereof.

  • Return of Capital means the return of capital which occurs when a fund pays an amount to the shareholders or unitholders that is part of the capital of the fund rather than being a dividend or distribution paid out of amounts earned by the fund. This enables a fund to pay a set amount of distributions each year that may consist of, in part, dividends, and, in part, a return of share capital. The main benefit of return of capital distributions is that they are not immediately taxable when received. This makes it different from other types of distributions such as dividends.

  • Debt Service Reserve Account shall have the meaning given to it in the Depository Agreement.

  • Target Capital Account means the Capital Account of a Member as of the end of each fiscal year, increased by any amount that such Member is obligated to restore under this Agreement, is treated as obligated to restore under Treasury Regulations Section 1.704-1(b)(2)(ii)(c), or is deemed obligated to restore under the penultimate sentences of Treasury Regulations Section 1.704-2(g)(1) and (i)(5).

  • Capital Account means, with respect to any Partner, the Capital Account maintained for such Partner in accordance with the following provisions:

  • Capital Account Distribution Date and "Income Account Distribution Date" shall mean the "Distribution Dates" set forth in the "Essential Information" in the Prospectus.

  • Specified Reserve Account Balance means, for any Payment Date, an amount equal to 1.00% of the Pool Balance as of the Cut-Off Date; provided, however, on any Payment Date after the Notes are no longer Outstanding following payment in full of the principal and interest on the Notes, the “Specified Reserve Account Balance” shall be $0.

  • Distributions means amounts payable in respect of the Trust Securities as provided in Section 4.1.

  • Expense Reserve Account The trust account established pursuant to Section 10.3(d).

  • After-Tax Account means a Participant’s account to which are credited After-Tax Contributions, if any, and earnings and losses thereon.

  • Capital Account Limitation has the meaning set forth in Section 4.05(b) hereof.

  • Liquidation Profits As to any Distribution Date and any Mortgage Loan that became a Liquidated Loan during the Applicable Unscheduled Principal Receipt Period with respect to Full Unscheduled Principal Receipts for such Distribution Date, the excess, if any, of (i) Net Liquidation Proceeds in respect of such Liquidated Loan over (ii) the unpaid principal balance of such Liquidated Loan plus accrued interest thereon in accordance with the amortization schedule at the time applicable thereto at the applicable Net Mortgage Interest Rate from the Due Date to which interest was last paid with respect thereto through the last day of the month preceding the month in which such Distribution Date occurs.

  • Replacement Reserve Account shall have the meaning set forth in Section 7.3.1 hereof.

  • Yield Maintenance Account The separate trust account maintained and held by the Trustee pursuant to Section 3.16, which account shall bear a designation clearly indicating that the funds deposited therein are held in trust for the benefit of the Trust on behalf of the Class A Certificateholders, and which account provides that the Trustee may make, or cause to be made, withdrawals therefrom in accordance with Section 3.16.

  • Upper-Tier Distribution Account A subaccount of the Distribution Account, which shall be an asset of the Trust Fund and the Upper-Tier REMIC.

  • Reserve Account means the account designated as such, established and maintained pursuant to Section 5.07.

  • Distribution Accounts Collectively, the Upper-Tier REMIC Distribution Account, the Lower-Tier REMIC Distribution Account, the Excess Interest Distribution Account (and in each case any subaccount thereof), all of which may be subaccounts of a single Eligible Account.

  • Lower-Tier Distribution Account A subaccount of the Distribution Account, which shall be an asset of the Trust Fund and the Lower-Tier REMIC.

  • Cash Available for Distribution means the Available Cash other than Net Sales Proceeds.

  • Debt Service Reserve Fund means the fund by that name established pursuant to the Second Resolution.

  • Interest Reserve Account As defined in Section 3.4(d).