Common use of Defaulting Member Clause in Contracts

Defaulting Member. (a) If any Member fails to contribute, in a timely manner, any portion of the Capital Commitment required to be contributed by such Member pursuant to this Agreement and such failure continues for five (5) Business Days after delivery by the Appropriate Officer to such Member of notice of such failure, then such Member shall be deemed a "Defaulting Member," and this Section 7.5 shall apply. An Appropriate Officer shall deliver to each non-Defaulting Member written notice of such default as promptly as practicable after its occurrence. (b) The Company may exercise any remedy available to it at law or equity against a Defaulting Member. Not in limitation of any of the Fund's remedies, interest will accrue on the portion of the Defaulting Member's Capital Commitment that such Member has failed to fund ("Failed Capital Commitment"), at the prime rate plus 2% per annum, up to the highest rate permitted by law. The Company shall also be entitled to reimbursement from a Defaulting Member for any and all costs and expenses in collecting any portion of a Failed Capital Commitment including, without limitation, attorney's fees and disbursements (to the extent permitted by applicable law).