Deficit Balances Clause Samples

The Deficit Balances clause defines how situations are handled when an account or position falls below a required balance, resulting in a negative or deficit amount. Typically, this clause outlines the obligations of the account holder to promptly cover any shortfall, and may specify the methods for notification, repayment, or the imposition of interest or fees on the deficit. Its core practical function is to ensure that any negative balances are addressed quickly, thereby protecting the financial interests of the party managing the account and maintaining the integrity of the financial arrangement.
Deficit Balances. No Partner shall be obligated to eliminate any deficit balance in its respective Capital Account or to bring its respective Capital Account into any parity with the Capital Account of any other Partner; provided that this provision shall not affect or impair any specific obligation of the Partners under the terms of this Agreement.
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Deficit Balances. No Member shall be obligated to eliminate any deficit balance in its Capital Account or to bring its Capital Account into any parity with the Capital Accounts of any other Class B or Class C or Class D Member.
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Deficit Balances. Except as otherwise specifically provided in this Agreement, if any Member has a deficit balance in its Capital Account (after giving effect to every Capital Contribution, distribution, and allocation for all taxable years, including the year during which such “liquidation” occurs), such Member shall have no obligation to make any Capital Contribution with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or any other Person for any purpose whatsoever.
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Deficit Balances. No Member shall have any obligation to the Company by reason of the existence of any negative Annual Net Cash Flow, deficit or loss by the Company. No distribution of Annual Net Cash shall be subject to refund because of a negative Annual Net Cash Flow in a subsequent fiscal year.
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Related to Deficit Balances

  • Credit Balances No interest or other amount will be paid by us on any credit balance on the Unallocated Account.

  • Account Balances Balances shown in your accounts may include deposits subject to verification by us. The balance reflected in the Service may differ from your records due to deposits in progress, checks outstanding, or other withdrawals, payments or charges. A transfer request may not result in immediate availability because of the time required to process the request. A transfer request must be made before the Business Day Cut-off time to be effective the same Business Day. The balances within the Service are updated periodically and the Service will display the most current "as of" date on the "accounts" summary page. There may be situations that cause a delay in an update of your balances. The Service will use the most current balance available at the time of a transaction to base our approval for account transfers.

  • Deficit Capital Accounts No Member will be required to pay to the Company, to any other Member or to any third party any deficit balance that may exist from time to time in the Member’s Capital Account.

  • Account Balance The Servicer must never allow any Custodial T&I Account to become overdrawn as to any individual related Borrower. If there are insufficient funds in the account, the Servicer must advance its own funds to cure the overdraft.

  • Excess Contributions An excess contribution is any amount that is contributed to your IRA that exceeds the amount that you are eligible to contribute. If the excess is not corrected timely, an additional penalty tax of six percent will be imposed upon the excess amount. The procedure for correcting an excess is determined by the timeliness of the correction as identified below.