Common use of Capital Needs Clause in Contracts

Capital Needs. (a) The Managers may make a capital call on all Members on a pro rata basis on their then held Membership Units; provided, however, no Member shall be required to make any further Capital Contributions unless agreed to in writing by the contributing Member. In the event a Member declines to make a pro rata capital contribution, the Member or Members who do particiate in the capital contribution shall receive a return of their capital contributions in full before distributions are made in accordance with the Percentage Interests, and subject to the Challa Preferred Return. (b) If the Company does not have sufficient cash to pay its obligations, any Member that may agree to do so with the Managers' consent may advance all or part of the needed funds to or on behalf of the Company. An advance described in this paragraph constitutes a loan from the Member to the Company, bears interest at the General Interest Rate from the date of the advance until the date of payment, and is not a Capital Contribution.

Capital Needs. (a) The Managers may make a capital call on all Members on a pro rata basis on their then held Membership Units; provided, however, no Member shall be required to make any further Capital Contributions unless agreed to in writing by the contributing Member. In the event a Member declines to make a pro rata capital contribution, the Member or Members who do particiate in the capital contribution shall receive a return of their capital contributions in full before distributions are made in accordance with the Percentage Interests, and subject to the Challa Preferred Return. (b) If the Company does not have sufficient cash to pay its obligations, any Member that may agree to do so with the Managers' ’ consent may advance all or part of the needed funds to or on behalf of the Company. An advance described in this paragraph constitutes a loan from the Member to the Company, bears interest at the General Interest Rate from the date of the advance until the date of payment, and is not a Capital Contribution.