Common use of Limitation on Allocation of Net Loss Clause in Contracts

Limitation on Allocation of Net Loss. Notwithstanding the provisions of Section 5.2, if the amount of Net Loss for any Adjustment Period that would otherwise be allocated to a Limited Partner under Section 5.2 would cause or increase an Adjusted Capital Account Deficit of the Limited Partner as of the last day of the Fiscal Year, then a proportionate part of the Net Loss equal to the excess will be allocated to the General Partner, and the remainder of the Net Loss, if any, will be allocated to the Limited Partner.