Capital Contributions and Financing Requirements Sample Clauses
The 'Capital Contributions and Financing Requirements' clause defines the obligations of parties to provide necessary funds or resources to a business or joint venture. It typically outlines how much each party must contribute, the timing of these contributions, and the procedures for addressing additional funding needs, such as through loans or further capital calls. This clause ensures that the entity has sufficient financial support to operate and grow, while also clarifying each party's financial responsibilities and reducing the risk of underfunding.
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Capital Contributions and Financing Requirements. The initial capital of the Partnership shall be:
(a) For X the amount of $[l], being the capital contribution made by X to the Partnership on [l]; and
(b) For Y the amount of $[l], being the capital contribution made by Y to the Partnership on [l] The initial capital so contributed by each of the Partners is credited to the capital account (“Capital Account”) of each Partner. The following provisions of this Section 3.1 shall apply in respect of the capital contributions of the Partners:
(c) the capital funds of the Partnership shall belong to the Partners in the proportion contributed by each Partner;
(d) any further contribution of capital required by the Partnership may be contributed to the Partnership by any one or both of the Partners without limitation as to the amount of such further capital contribution and any such additional capital contribution shall be treated in the same manner as the initial capital contributions above set out; and
(e) no Partner shall be entitled to interest on the amount of its capital contribution to the Partnership.
Capital Contributions and Financing Requirements. The initial capital of the Partnership shall be:
(a) For A the amount of $[●], being the capital contribution made by A to the Partnership on [●]; and
(b) For B the amount of $[●], being the capital contribution made by B to the Partnership on [●]
(c) For C the amount of $[●], being the capital contribution made by C to the Partnership on [●]
(d) For D the amount of $[●], being the capital contribution made by D to the Partnership on [●]
(e) For E the amount of $[●], being the capital contribution made by E to the Partnership on [●]
(f) For F the amount of $[●], being the capital contribution made by F to the Partnership on [●] The initial capital so contributed by each of the Partners is credited to the capital account (“Capital Account”) of each Partner. The following provisions of this Section 3.1 shall apply in respect of the capital contributions of the Partners:
(g) the capital funds of the Partnership shall belong to the Partners in the proportion contributed by each Partner;
(h) any further contribution of capital required by the Partnership may be contributed to the Partnership by any one or part or all of the Partners without limitation as to the amount of such further capital contribution and any such additional capital contribution shall be treated in the same manner as the initial capital contributions above set out; and
(i) no Partner shall be entitled to interest on the amount of its capital contribution to the Partnership.