Common use of Additional Capital Contribution Clause in Contracts

Additional Capital Contribution. Increase in capital. If at anytime during the existence of the Joint Venture it becomes necessary to increase the capital with which the Joint Venture is doing business then: No Joint Venturer shall be required to make additional contributions to the capital of the Joint Venture. Any Joint Venturer who shall make a contribution shall be deemed to have made a loan to such Joint Venture, which loan shall bear interest at an annual rate of 12%, which principal and interest shall have priority over any and all other sums owed to or payable to the Joint Venturers.