Common use of General Rules for Adjustment of Capital Accounts Clause in Contracts

General Rules for Adjustment of Capital Accounts. The Capital Account of each Member shall be: (i) increased by: (A) the aggregate amount of such Member's cash contributions to the Company; (B) the initial Book Value of property contributed by such Member to the Company; (C) such Member's distributive share of Profits and items of income and gain allocated to such Member pursuant to Section 2.1(c)(iv) or ARTICLE 4; (D) any positive adjustment to such Capital Account by reason of an adjustment to the Book Value of the Company assets; and (E) the amount of Company liabilities assumed by such Member or which are secured by any property distributed to such Member; and (ii) decreased by: (A) cash distributions to such Member from the Company; (B) the Book Value of property distributed in kind to such Member; (C) such Member's distributive share of Losses and items of loss or deduction allocated to such Member pursuant to Section 2.1(c)(iv) or ARTICLE 4; (D) any negative adjustment to such Capital Account by reason of an adjustment to the Book Value of Company assets; (E) any amount charged to the Capital Account of such Member pursuant to Section 5.5(e); and (F) the amount of any liabilities of such Member assumed by the Company or which are secured by property contributed by such Member to the Company.