Common use of Changes in Interest Clause in Contracts

Changes in Interest. Upon the admission of an additional Member or the assignment of an Interest, or at such other time as it is necessary to determine the Net Income, Net Loss or other items allocable to a particular period, the Managing Member shall determine the proper allocation of Net Income, Net Loss and items of income, gain, loss, deduction and credit to the periods before and after such admission or Transfer, or to the period in question, using any method permitted under Code section 706 and the Treasury Regulations thereunder.

Appears in 2 contracts

Sources: Operating Agreement, Operating Agreement

Changes in Interest. Upon the admission of an additional Additional Member or the assignment Assignment of an Interest, or at such other time as it is necessary to determine the Net Income, Net Loss or other items allocable to a particular period, the Managing Member shall determine the proper allocation of Net Income, Net Loss and items of income, gain, loss, deduction and credit to the periods before and after such admission or Transfer, or to the period in question, using any method permitted under Code section 706 and the Treasury Regulations thereunder.

Appears in 1 contract

Sources: Limited Liability Company Operating Agreement