Bankruptcy of a Limited Partner Sample Clauses
The "Bankruptcy of a Limited Partner" clause defines the consequences and procedures that apply if a limited partner in a partnership becomes bankrupt or insolvent. Typically, this clause outlines what happens to the bankrupt partner's interest in the partnership, such as whether it is automatically transferred, subject to buyout by the remaining partners, or if the partner loses certain rights. For example, the clause may specify that the bankrupt partner's share is redistributed or that the partnership may be dissolved unless the remaining partners agree to continue. The core function of this clause is to protect the partnership from disruption and uncertainty by providing a clear process for handling a partner's bankruptcy, thereby ensuring business continuity and stability.
Bankruptcy of a Limited Partner. The Bankruptcy of any Limited Partner shall not cause a dissolution of Partnership, but the rights of such Limited Partner to share in the Net Income or Net Losses of the Partnership and, to receive distributions of Partnership funds shall, on the happening of such event, devolve on its successors or assigns, subject to the terms and conditions of this Agreement, and the Partnership shall continue as a limited partnership. However, in no event shall such assignee(s) become a Substituted Limited Partner without the consent of the General Partner.
Bankruptcy of a Limited Partner. The bankruptcy of a Limited Partner shall not dissolve or terminate the Partnership. In the event the bankrupt Limited Partner’s interest in the Partnership passes to a successor or successors in interest of such Limited Partner, such successor or successors in interest shall succeed to the bankrupt Limited Partner’s entire interest in the Partnership and shall, subject to the following sentence and upon execution of a counterpart of this Agreement, become Limited Partners of the Partnership with the same Capital Interest and Profits Interest in the Partnership, the same rights in and to all distributions made by the Partnership, in liquidation or otherwise, and with the same share of the Partnership’s taxable income and losses as the bankrupt Limited Partner had with respect to its interest in the Partnership. In the event a successor or successors in interest of the Limited Partner are admitted to the Partnership as limited partners hereunder, such successor or successors shall execute and shall deliver to the Partnership all documents that may be necessary or appropriate, in the opinion of counsel for the General Partner, to reflect their admission to the Partnership as Limited Partners and their agreement to be bound by the terms and conditions of this Agreement, and shall pay all reasonable expenses connected with such substitution. In the event that any such successor shall refuse, decline, or fail to execute a written counterpart of this Agreement, such person shall not be treated as a Partner of the Partnership for any purposes whatsoever, but only as an assignee, of a right to receive distributions from the Partnership.
Bankruptcy of a Limited Partner. The Bankruptcy of any Limited Partner shall not cause such partner to cease to be a Limited Partner.
Bankruptcy of a Limited Partner. The Partnership shall not be dissolved or terminated by reason of the Bankruptcy, removal, withdrawal, dissolution or admission of any Limited Partner.
Bankruptcy of a Limited Partner. The Bankruptcy of any Limited Partner shall not cause a dissolution of the Partnership, but the rights of such Limited Partner to share in the Profits or Losses of the Partnership and to receive distributions of Partnership funds shall, on the happening of such event, devolve to its successors or assigns, subject to the terms and conditions of this Agreement, and the Partnership shall continue as a limited partnership. However, in no event shall such assignee(s) become a Substituted Limited Partner without the consent of the General Partner, which consent may be withheld in its sole and absolute discretion.
Bankruptcy of a Limited Partner. In the event of the bankruptcy of a Limited Partner, the trustee, conservator, administrator, receiver or other successor in interest of such Limited Partner shall have all the rights of such Limited Partner for the purpose of settling or managing its affairs and such power as such Limited Partner possessed to assign all or a part of its Limited Partnership Interest and to join with the assignee in satisfying the conditions precedent to such assignee becoming a Substitute Limited Partner. The bankruptcy of a Limited Partner shall not dissolve the Partnership. A Limited Partner’s successor in interest shall be liable for all obligations of the Limited Partner. In no event, however, shall such successor in interest become a Substitute Limited Partner, except in accordance with Section 13.4 hereof.
Bankruptcy of a Limited Partner. The occurrence of an Insolvency Event with respect to a Limited Partner shall not cause a dissolution of the Partnership if the other Partners elect to continue the Partnership as provided in Section 5.9 hereof.
Bankruptcy of a Limited Partner. ONLY If any Limited Partner becomes a Bankrupt, the Limited Partnership shall have the option, exercisable by notice from the General Partner to the Bankrupt Partner (or his or its representative) at any time prior to the one hundred eightieth (180th) day after receipt of notice of the occurrence of the event causing him or it to become a Bankrupt, to buy, and on the exercise of this option the Bankrupt Partner or his or its representative shall sell, his or its Units. The purchase price shall be an amount equal to the fair market value thereof determined by agreement by the Bankrupt Partner (or his or its representative) and the General Partner; however, if those Persons do not agree on the fair market value on or before the thirtieth (30th) day following the exercise of the option, either such Person, by notice to the other, may require the determination of fair market value to be made by an independent appraiser specified in that notice. If the Person receiving that notice objects on or before the tenth (10th) day following receipt to the independent appraiser designated in that notice, and those Persons otherwise fail to agree on an independent appraiser, such Person may petition the courts in the province of British Columbia to designate an independent appraiser. The determination of the independent appraiser, however designated, is final and binding on all parties. The Bankrupt Partner and the Limited Partnership each shall pay one-half of the costs of the appraisal. The purchaser shall pay the fair market value as so determined in four equal cash instalments, the first due on closing and the remainder (together with accumulated interest on the amount unpaid at the General Interest Rate) due on each of the first three (3) anniversaries thereof. The payment to be made to the Bankrupt Partner or his or its representative pursuant to this Section. is in complete liquidation and satisfaction of all the rights and interest of the Bankrupt Partner and his or its representative (and of all Persons claiming by, through, or under the Bankrupt Partner and his or its representative) in and in respect of the Limited Partnership, including, without limitation, any Units, any rights in specific Limited Partnership property, and any rights against the Limited Partnership and (insofar as the affairs of the Company are concerned) against the Limited Partners, and constitutes a compromise to which all Partners have agreed pursuant to the Act.
Bankruptcy of a Limited Partner. The bankruptcy or dissolution of any of the Limited Partners shall not result in the dissolution or termination of the Partnership, but the rights of such bankrupt or dissolved Limited Partner under this Agreement shall accrue to its respective estate or successor. Except as expressly provided for in this Agreement, no other event affecting any of the Limited Partners (including but not limited to insolvency or incapacity) shall affect the Partnership or this Agreement.
Bankruptcy of a Limited Partner. The Bankruptcy of any Limited Partner shall not cause such Partner to cease to be a member of the Partnership and the Partnership shall continue without dissolution.