Common use of Contributions of Property Clause in Contracts

Contributions of Property. In the event that property (other than cash) is contributed by a Holder to the Trust, the computation of Capital Accounts, as set forth in this Section 10.03, shall be adjusted as follows: (i) the contributing Holder’s Capital Account shall be increased by the fair market value of the property contributed to the Trust by such Holder (net of liabilities secured by such contributed property that the Trust is considered to assume or take subject to under Section 752 of the Code); and (ii) as and if required by Treas. Reg. §§1.704-l(b)(2)(iv)(g) and 1.704-l(b)(4)(i), if such Holder’s Capital Account reflects a fair market value for property which differs from such property’s adjusted tax basis, such Holder’s Capital Account thereafter shall be adjusted to take account of the amount of Book Gain and Book Loss, as defined below, allocated to such Holder pursuant to Section 10.04 and shall not thereafter take into account the net income, net gain and net loss of the Trust for federal income tax purposes allocated to such Holder pursuant to this Article 10.

Contributions of Property. In the event that property (other than cash) is contributed by a Holder Shareholder to the Trust, the computation of Capital Accounts, as set forth in this Section 10.039.4, shall be adjusted as follows: (i) the contributing Holder’s Shareholder's Capital Account shall be increased by the fair market value of the property contributed to the Trust by such Holder the Shareholder (net of liabilities secured by securing such contributed property that the Trust is considered to assume or take subject to under Section 752 of the Code); and (ii) as and if required by Treas. Reg. §§▇▇.▇▇. 1.704-l(b)(2)(iv)(g) and 1.704-l(b)(4)(i), if such Holder’s a Shareholder's Capital Account reflects a fair market value for property which differs from such property’s 's adjusted tax basis, such Holder’s Shareholder's Capital Account thereafter shall be adjusted to take account of the amount of Book Gain and Book Loss, as defined below, Loss allocated to such Holder Shareholder pursuant to Section 10.04 9.5 hereof and shall not thereafter take into account the net income, net gain and net loss of the Trust for federal income tax purposes allocated to such Holder Shareholder pursuant to this Article 109.