Failure to Make Capital Contributions. In the event a Member fails to pay any installment of the Capital Contributions when due from such Member and such default is not cured within ten (10) days after written notice has been given to the Member by the Manager that such default has occurred, the amount of such Member's Percentage Interest shall be accordingly reduced to reflect the reduction in the Capital Contributions of such defaulting Member. After, and in addition to, the reduction in Percentage Interests required by the preceding sentence, such Member shall be subject to interest charges on the defaulted installment or installments of twelve percent (12%) per annum or the highest rate permitted by Minnesota law, whichever is less, which interest charges may be deducted by the Company from the capital contributions theretofore made by such Member in such Member's Capital Account, and the resulting reduction in such Member's Percentage Interest shall then be allocated among the remaining, nondefaulting Members in proportion to their respective Percentage Interests. This Agreement shall be deemed amended to reflect the revised Percentage Interests.
Appears in 2 contracts
Sources: Operating Agreement (Taylor Investment Corp /Mn/), Operating Agreement (Taylor Investment Corp /Mn/)