Common use of Amount of Distributions Clause in Contracts

Amount of Distributions. Except as provided in Section 4.3(iii), distributions shall be made to the Members in accordance with the number of Units held by each. Notwithstanding the foregoing, as provided in Article 4, if at any time there exists outstanding Demand Loans from the Lending Members to the Defaulting Member, the amount which would otherwise be distributed to the Defaulting Member shall be distributed to the Lending Members in proportion to the balances of their Demand Loans in payment thereof until they have been paid in full. Such distributions, however, shall be charged against the Capital Accounts of the Defaulting Member and treated as made to the Defaulting Member for Company accounting purposes.