ALLOCATION TO AVOID Sample Clauses
The "Allocation to Avoid" clause is designed to prevent the assignment or distribution of certain responsibilities, costs, or liabilities to a party under specific circumstances. In practice, this clause may specify that if a particular risk or expense arises, it should not be allocated to one party, thereby shielding them from that burden. For example, it might state that costs resulting from regulatory changes are not to be passed on to the contractor. The core function of this clause is to clearly delineate which obligations are excluded from a party's responsibilities, thereby reducing the risk of unexpected liabilities and ensuring fairness in the contractual relationship.
ALLOCATION TO AVOID. CAPITAL ACCOUNT DEFICITS To the extent that any debits under Sections 5.4 through 5.6 of this Agreement would reduce the balance of the Capital Account of any Limited Partner below zero, that portion of any such debits will be allocated instead to the Capital Account of the General Partner. Any credits in any subsequent Fiscal Period that otherwise would be allocable under Sections 5.4 through 5.6 of this Agreement to the Capital Account of any Limited Partner previously affected by the application of this Section 5.7 will instead be allocated to the Capital Account of the General Partner in amounts necessary to offset all previous debits attributable to the Limited Partner, made in accordance with this Section 5.7, that have not been recovered.