Common use of No Obligation to Restore Clause in Contracts

No Obligation to Restore. Nothing herein shall be construed to require any Member to restore any negative balance in such Member’s Capital Account, upon a liquidation of the Company within the meaning of § 1.704-1(b)(2)(ii)(g) of the Regulations or otherwise, and the negative balance of any Member’s Capital Account shall not be considered a debt owed by the Member to the Company or to any other Person for any purpose whatsoever.

Appears in 2 contracts

Sources: Operating Agreement (KonaTel, Inc.), Operating Agreement (KonaTel, Inc.)