Exception for Life Insurance Clause Samples
Exception for Life Insurance. Notwithstanding the foregoing provisions of this Section, any decision on behalf of the Partnership to acquire a life insurance policy which insures the life of any Partner shall be made on behalf of the Partnership only by majority consent of the General Partners, excluding the Partner to be insured, on the basis of their Percentage Interests. At any time during which the Partnership owns any life insurance policy insuring the life of any Partner or otherwise possesses any of the incidents of ownership with respect to any such policy, as the term "incidents of ownership" is defined for purposes of Section 2042 of the Code, the insured Partner shall have no right or power to exercise any Powers of Management with respect to any incidents of ownership of the policy, including the right to borrow from the insurance company or any other person using the policy as collateral, to change or prevent any change in the beneficiary designation under the policy, to surrender the policy or any portion of the policy for its cash surrender value, and to cancel or terminate the policy; instead, the Powers of Management with respect to the policy shall be exercised only by majority consent of the General Partners, excluding the insured Partner, on the basis of their Percentage Interests.
Exception for Life Insurance. Any decision on behalf of the Partnership to acquire a life insurance policy which insures the life of any Partner shall be made on behalf of the Partnership only with the consent of 80% of the Members of the General Partner based on their Percentage Interests in the Entity which is the General Partner. At any time during which the Partnership owns any life insurance policy insuring the life of any Partner or otherwise possesses any of the incidents of ownership with respect to any such policy, as the term "incidents of ownership" is defined for purposes of Section 2042 of the Code, the insured Partner shall have no right or power to exercise any Powers of Management with respect to any incidents of ownership of the policy, including the right to borrow from the insurance company or any other person using the policy as collateral, to change or prevent any change in the beneficiary designation under the policy, to surrender the policy or any portion of the policy for its cash surrender value, and to cancel or terminate the policy; instead, the Powers of Management with respect to the policy shall be exercised only by majority consent of the General Partners, excluding the insured Partner, on the basis of their Percentage Interests.