Common use of Allocation of Loss Clause in Contracts

Allocation of Loss. Loss (as defined in Section 5.3, below) for each taxable year shall be allocated as follows: (a) First, to the Partners to adjust their Adjusted Balances progressively as necessary to preserve the priorities of such balances described in Section 5.2.1(a) through (d) above, until the Adjusted Balances of the Partners have been reduced to zero; and (b) Then, in accordance with the Partners’ respective Percentage Interest.

Allocation of Loss. Loss (as defined in Section 5.3, below) for each taxable year shall be allocated as follows: (a) First, to the Partners to adjust their Adjusted Balances progressively as necessary to preserve the priorities of such balances described in Section 5.2.1(a) through (d) above, until the Adjusted Balances of the Partners have been reduced to zero; and (b) Then, in accordance with the Partners’ respective Percentage InterestInterests.