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

General Rules for Adjustment of Capital Accounts. (a) To each Member's Capital Account there shall be credited such Member's Capital Contributions, such Member's allocated share of Profits and any items in the nature of income or gain that are specially allocated pursuant to Section 4.3 or 4.4 hereof, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member; (b) To each Member's Capital Account there shall be debited the amount of cash and the Gross Asset Value of any property distributed to such Member pursuant to any provision of this Agreement, such Member's allocated share of Losses and any items in the nature of expenses or losses that are specially allocated pursuant to Section 4.3 or 4.4 hereof, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company; (c) In the event all or a portion of a Interest in the Company is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Interest; and (d) In determining the amount of any liability for purposes of subparagraphs (a) and (b) of this Section, there shall be taken into account Code Section 752(c) and any other applicable provisions of the Code and Regulations.

General Rules for Adjustment of Capital Accounts. (a) To each Member's Capital Account there shall be credited such Member's Capital Contributions, such Member's allocated share of Profits and any items in the nature of income or gain that are specially allocated pursuant to Section 4.3 or 4.4 hereofSection 4.4, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member; (b) To each Member's Capital Account there shall be debited reduced by the amount of cash and the Gross Asset Value of any property distributed to such Member pursuant to any provision of this Agreement, ; such Member's allocated share of Losses Losses; and any items in the nature of expenses or losses that are specially allocated pursuant to Section 4.3 or 4.4 hereofSection 4.4, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company; (c) In the event all or a portion of a Member's Interest in the Company is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Member's Interest; and (d) In determining the amount of any liability for purposes of subparagraphs Subsection (a) and Subsection (b) of this SectionSection 3.5, there shall be taken into account Code Section 752(c) and any other applicable provisions of the Code and Regulations.