Limitations on Return of Capital Contributions Sample Clauses
The "Limitations on Return of Capital Contributions" clause defines the conditions under which investors or partners may receive back the capital they have contributed to a business or partnership. Typically, this clause restricts the return of capital until certain financial benchmarks are met, such as the payment of debts or the achievement of specific profit levels, and may prohibit withdrawals that would jeopardize the entity’s solvency. Its core function is to protect the financial stability of the entity by ensuring that capital remains available to meet obligations and support ongoing operations, thereby preventing premature or excessive distributions that could harm creditors or other stakeholders.
Limitations on Return of Capital Contributions. Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return of all or part of a Partner’s Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair market value of the Partnership’s assets.
Limitations on Return of Capital Contributions. 16 5.6. Distributions Upon Liquidation. 17 5.7. Substantial Economic Effect. 17 5.8. Reinvestment. 17
Limitations on Return of Capital Contributions. Notwithstanding any of the provisions of this ARTICLE V, no Member shall have the right to receive, and the Company shall not have the right to make, a distribution that includes a return of all or part of a Member’s Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Company liabilities, other than the liabilities to a Member for the return of its Capital Contribution, does not exceed the fair market value of the Company’s assets.
Limitations on Return of Capital Contributions. Notwithstanding any of the provisions of this Article VI, no Partner shall have the right to receive and the Managing General Partner shall not have the right to make, a distribution that includes a return of all or part of a Partner's Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair market value of the Partnership's assets.