Common use of Method of Liquidation Clause in Contracts

Method of Liquidation. Upon the happening of any of the events specified in Section 23.1 above which require the Company to be terminated, liquidated and dissolved, the Company, notwithstanding any provisions to the contrary in the Act, shall liquidate its assets in a manner that is consistent with avoiding undue loss and apply and distribute its assets in the following manner and in the following order of priority: (a) To the payment of the debts and liabilities of the Company (other than the Capital Accounts of the Members) and to the expenses of liquidation in the order of priority as provided by law; then (b) To the repayment of any debts or liabilities of the Company to the Members, and (c) Then in the order of priority set forth in Section 9.1(b) hereof;