Common use of PROCEEDS AND DISTRIBUTIONS IN LIQUIDATION Clause in Contracts

PROCEEDS AND DISTRIBUTIONS IN LIQUIDATION. The proceeds received by the Partnership in connection with the liquidation and winding up of the Partnership shall be applied in the following order of priority: 4.2.1 First, to the payment of the expenses incurred in dissolution and termination; 4.2.2 Next, to the payment of creditors of the Partnership (including making the repayments of any unpaid Partner loans in the same priority as is described in Section 4.1) except secured creditors whose obligations will be assumed or otherwise transferred on a liquidation of the Partnership property or assets; and