Loans From Unitholders Clause Samples
The "Loans From Unitholders" clause defines the terms under which unitholders may provide loans to the entity, such as a trust or partnership. It typically outlines the process for making such loans, including requirements for approval, interest rates, repayment terms, and any security interests that may be granted. For example, it may specify that loans must be approved by a majority of unitholders or that they will be repaid only after other debts are settled. The core function of this clause is to establish clear rules and protections for both the entity and its unitholders when unitholders act as creditors, thereby preventing disputes and ensuring transparency in financial dealings.
POPULAR SAMPLE Copied 3 times
Loans From Unitholders. Loans by Unitholders to the Company shall not be considered Capital Contributions. If any Unitholder shall loan funds to the Company in excess of the amounts required hereunder to be contributed by such Unitholder to the capital of the Company, the making of such loans shall not result in any increase in the amount of the Capital Account of such Unitholder. The amount of any such loans shall be a debt of the Company to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which such loans are made.
Loans From Unitholders. Loans by Unitholders to the Company shall not be considered Capital Contributions.
Loans From Unitholders. Loans by Unitholders to the LLC shall not be considered Capital Contributions. If any Unitholder shall advance funds to the LLC in excess of the amounts required hereunder to be contributed by him to the capital of the LLC, the making of such advance shall not result in any increase in the amount of the Capital Account of such Unitholder. The amount of any such advance shall be a debt of the LLC to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which such advances are made, as agreed upon by the LLC (with the approval of the Board) and such Unitholder. Notwithstanding the foregoing provisions of this Section 3.7, the LLC shall use its best efforts to refrain from any activity that would cause a Member (or any holder of direct or indirect interests in a Member) to recognize “unrelated business taxable income” under Sections 511-514 of the Code.
Loans From Unitholders. DISTRIBUTIONS; REDEMPTIONS AND ALLOCATIONS
Loans From Unitholders. Loans by Unitholders to the Partnership shall not be considered Capital Contributions. If any Unitholder shall transfer funds to the Partnership in excess of the amounts required hereunder to be contributed by such Unitholder to the capital of the Partnership, the transfer of such excess shall not result in any increase in the amount of the Capital Account of such Unitholder. The amount of any such excess, to the extent approved by the General Partner and the Unitholder, shall be a debt of the Partnership to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which such loans are made.
Loans From Unitholders. If Unitholders make loans to the LLC (subject to Section 5.1(b)(iv)); (a) such loans shall not be considered Capital Contributions; (b) the making of such loans shall not result in any increase in the amount of the Capital Account of such Unitholder; and (c) the amount of any such loans shall be a debt of the LLC to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which such loans are made.
Loans From Unitholders. Loans by Unitholders to the Company may be made with the approval of the Managers, and if such loans by Unitholders to the Company are made, they shall not be considered Capital Contributions. If any Unitholder shall loan funds to the Company in excess of the amounts required hereunder to be contributed by such Unitholder to the capital of the Company, the making of such loans shall not result in any increase in the amount of the Capital Account of such Unitholder. The amount of any such loans shall be a debt of the Company to such Unitholder and shall be payable or collectible in accordance with the terms and conditions upon which such loans are made.
Loans From Unitholders. 36 3.10. Additional Terms Applicable to Value Units ...................................................... 36 3.11. Effects of a Trigger Event ..................................................................................... 36 3.12. Effects of an Excess Escrow Loss ......................................................................... 36
Loans From Unitholders. 12 Section 3.7........... Revaluations of Assets and Capital Account Adjustments. 12 ARTICLE IV DISTRIBUTIONS AND ALLOCATIONS. 13 Section 4.1........... Distributions. 13 Section 4.2........... Allocations. 14
Loans From Unitholders. Loans by Unitholders to the Company shall not be considered Capital Contributions. If any Unitholder shall transfer funds to the Company in excess of the amounts required hereunder to be contributed by such Unitholder to the capital of the Company, the transfer of such excess shall not result in any increase in the amount of the Capital Account of such Unitholder. The amount of any such excess, to the extent approved by the Board and the Unitholder, shall be a debt of the Company to such Unitholder and shall be payable or collectible in accordance with such terms and conditions as are set by the Board and agreed to by such Unitholder and otherwise promptly repaid to such Unitholder.