CapitaI Contribution Sample Clauses
A Capital Contribution clause defines the obligation of each party, typically partners or shareholders, to provide a specified amount of money or assets to a business entity. This clause outlines the timing, form, and method of these contributions, such as initial cash payments, property transfers, or future funding requirements. By clearly establishing each party’s financial commitment, the clause ensures the entity is adequately funded and helps prevent disputes over funding responsibilities.
CapitaI Contribution. OCP covenants and agrees that, from time to time upon the occurrence during the Term of this Agreement of any Contribution Event and the subsequent written request by the Bank to OCP specifying the Required Cure Amount for such Contribution Event ("Request"), OCP will make a capital contribution in cash to Borrower in such Required Cure Amount; provided that the aggregate amount of all such capital contributions by OCP during the Term shall not exceed the difference between (a) 25% of the aggregate Capital Commitments (as such term is defined in OCP's Limited Partnership Agreement) of all Partners of OCP, and (b) $880,000.00 (the "Contribution Maximum"). The foregoing capital contribution covenant is for the independent benefit of the Bank and shall be enforceable independently by the Bank without the participation or authorization of Borrower. All capital contributions made by OCP pursuant to this Agreement will be made in respect to the capital stock of Borrower owned by OCP and, if Borrower declines to do so, without the issuance of any additional shares of capital stock of Borrower. All capital contributions made by OCP pursuant to this Agreement upon the issuance of a Request by the Bank shall be made within ten (10) days after the date of delivery to OCP of the Request for such capital contribution payment and shall be made by payment directly to the Bank for the account of Borrower by OCP. Immediately upon such capital contribution payment being received it shall be applied by Borrower to the Obligations in such order as the Bank may determine (or, if there are no outstanding balances on the Loans, held as cash collateral in an interest bearing account under the Security Agreement). OCP or Borrower shall provide such confirmations as the Bank reasonably may require of each capital contribution made pursuant to a Request promptly after making each such capital contribution. In the event for any reason this Agreement is deemed a subscription by OCP to make an additional capital contribution to Borrower, Borrower hereby assigns such subscription to the Bank as security for the Obligations and agrees that such subscription is a general intangible subject to the security interests of the Bank granted under the Security Agreement.