{"component": "clause", "props": {"groups": [{"size": 10, "snippet": "The allocations and maintenance of Capital Accounts provisions contained in this Agreement are intended to comply with 26 U.S. Code \u00a7 704 and shall be interpreted in a manner consistent with such regulations. The Company may, by action of the Manager, and without the consent of any Member, amend the provisions of the Agreement and the manner in which profits and losses (or other items) are allocated to the extent (but only to the extent) necessary to comply with 26 U.S. Code \u00a7 704.", "snippet_links": [{"key": "maintenance-of-capital-accounts", "type": "clause", "offset": [20, 51]}, {"key": "in-this-agreement", "type": "definition", "offset": [73, 90]}, {"key": "comply-with", "type": "clause", "offset": [107, 118]}, {"key": "consistent-with", "type": "definition", "offset": [175, 190]}, {"key": "the-company", "type": "clause", "offset": [209, 220]}, {"key": "the-manager", "type": "clause", "offset": [239, 250]}, {"key": "consent-of", "type": "clause", "offset": [268, 278]}, {"key": "provisions-of-the-agreement", "type": "clause", "offset": [301, 328]}, {"key": "profits-and-losses", "type": "definition", "offset": [353, 371]}, {"key": "other-items", "type": "clause", "offset": [376, 387]}, {"key": "to-the-extent", "type": "clause", "offset": [403, 416]}], "samples": [{"hash": "3e11EaW3cp5", "uri": "/contracts/3e11EaW3cp5#compliance-with-code", "label": "Operating Agreement (ILS Fixed Horizon LLC)", "score": 35.2861061096, "published": true}, {"hash": "kcJdcpM7DKx", "uri": "/contracts/kcJdcpM7DKx#compliance-with-code", "label": "Operating Agreement (ILS Fixed Horizon LLC)", "score": 34.9712524414, "published": true}, {"hash": "6XPGpl2JxQG", "uri": "/contracts/6XPGpl2JxQG#compliance-with-code", "label": "Operating Agreement (Rockstar Capital Group, LLC)", "score": 34.527721405, "published": true}], "hash": "8203b01fe89bc307193a266ccd049000", "id": 7}, {"size": 51, "snippet": "comply and will procure that any Operator will comply with and ensure that the Ship and any Operator will comply with the requirements of the Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Security Period;", "snippet_links": [{"key": "the-code", "type": "clause", "offset": [138, 146]}, {"key": "not-limited", "type": "clause", "offset": [163, 174]}, {"key": "maintenance-and-renewal", "type": "clause", "offset": [183, 206]}, {"key": "security-period", "type": "definition", "offset": [261, 276]}], "samples": [{"hash": "lPIYJ7JlRnr", "uri": "/contracts/lPIYJ7JlRnr#compliance-with-code", "label": "Quadripartite Deed (Top Tankers Inc.)", "score": 18.0, "published": true}, {"hash": "j34wkHK9Vh0", "uri": "/contracts/j34wkHK9Vh0#compliance-with-code", "label": "Quadripartite Deed (Top Tankers Inc.)", "score": 18.0, "published": true}, {"hash": "hWC8bdWsnL0", "uri": "/contracts/hWC8bdWsnL0#compliance-with-code", "label": "Quadripartite Deed (Top Tankers Inc.)", "score": 18.0, "published": true}], "hash": "3b9ee501afa8d8c65fef9136a63652ac", "id": 1}, {"size": 41, "snippet": "6.1. Section 817(h). Each Fund of the Trust shall comply with Section 817(h) of the Code and the regulations issued thereunder to the extent applicable to the Fund as an investment company underlying the Account, and the Trust shall notify the Company immediately upon having a reasonable basis for believing that a Fund has ceased to so qualify or that it might not so qualify in the future.", "snippet_links": [{"key": "of-the-trust", "type": "clause", "offset": [31, 43]}, {"key": "comply-with", "type": "clause", "offset": [50, 61]}, {"key": "the-code", "type": "clause", "offset": [80, 88]}, {"key": "the-regulations", "type": "clause", "offset": [93, 108]}, {"key": "to-the-extent", "type": "clause", "offset": [127, 140]}, {"key": "to-the-fund", "type": "definition", "offset": [152, 163]}, {"key": "an-investment-company", "type": "clause", "offset": [167, 188]}, {"key": "the-account", "type": "clause", "offset": [200, 211]}, {"key": "the-company", "type": "clause", "offset": [240, 251]}, {"key": "immediately-upon", "type": "clause", "offset": [252, 268]}, {"key": "having-a", "type": "definition", "offset": [269, 277]}, {"key": "reasonable-basis", "type": "definition", "offset": [278, 294]}, {"key": "the-future", "type": "clause", "offset": [381, 391]}], "samples": [{"hash": "jnks1e6v0kG", "uri": "/contracts/jnks1e6v0kG#compliance-with-code", "label": "Participation Agreement (AuguStar Variable Account R)", "score": 34.9972610474, "published": true}, {"hash": "dej1YnYhvjQ", "uri": "/contracts/dej1YnYhvjQ#compliance-with-code", "label": "Participation Agreement (AuguStar Variable Account R)", "score": 34.9972610474, "published": true}, {"hash": "14OTTwu90cO", "uri": "/contracts/14OTTwu90cO#compliance-with-code", "label": "Participation Agreement (Horace Mann Life Insurance Co Separate Account)", "score": 34.319644928, "published": true}], "hash": "4cb39927f8b505eddf05ecf13855a9d4", "id": 2}, {"size": 34, "snippet": "6.1. The Fund shall comply with Section 817(h) of the Code, and all regulations issued thereunder and shall notify the Company immediately upon having a reasonable basis for believing that it has ceased to so qualify or that it might not so qualify in the future.\n6.2. The Fund shall maintain its qualification as a regulated investment company (under Subchapter M of the Code or any successor or similar provision), and shall notify the Company immediately upon having a reasonable basis for believing that it has ceased to so qualify or that it might not so qualify in the future.\n6.3. The Company shall maintain the treatment of the Contracts as annuity contracts or life insurance policies, whichever is appropriate, under applicable provisions of the Code and shall notify the Fund and the Adviser immediately upon having a reasonable basis for believing that the Contracts have ceased to be so treated or that they might not be so treated in the future.", "snippet_links": [{"key": "the-fund", "type": "clause", "offset": [5, 13]}, {"key": "comply-with", "type": "clause", "offset": [20, 31]}, {"key": "notify-the", "type": "clause", "offset": [108, 118]}, {"key": "immediately-upon", "type": "clause", "offset": [127, 143]}, {"key": "having-a", "type": "definition", "offset": [144, 152]}, {"key": "reasonable-basis", "type": "definition", "offset": [153, 169]}, {"key": "the-future", "type": "clause", "offset": [252, 262]}, {"key": "qualification-as-a-regulated-investment-company", "type": "clause", "offset": [297, 344]}, {"key": "subchapter-m-of-the-code", "type": "definition", "offset": [352, 376]}, {"key": "the-company-shall", "type": "clause", "offset": [588, 605]}, {"key": "treatment-of", "type": "definition", "offset": [619, 631]}, {"key": "the-contracts", "type": "clause", "offset": [632, 645]}, {"key": "annuity-contracts", "type": "clause", "offset": [649, 666]}, {"key": "life-insurance-policies", "type": "definition", "offset": [670, 693]}, {"key": "provisions-of-the", "type": "clause", "offset": [738, 755]}, {"key": "the-adviser", "type": "definition", "offset": [791, 802]}], "samples": [{"hash": "gxa8KyeYIIo", "uri": "/contracts/gxa8KyeYIIo#compliance-with-code", "label": "Participation Agreement (Lincoln Life & Annuity Flexible Premium Variable Life Account M)", "score": 21.2498283386, "published": true}, {"hash": "5vsReAHV7Q9", "uri": "/contracts/5vsReAHV7Q9#compliance-with-code", "label": "Participation Agreement (Lincoln Life Flexible Premium Variable Life Account M)", "score": 21.2498283386, "published": true}, {"hash": "lxGYbrlaBRs", "uri": "/contracts/lxGYbrlaBRs#compliance-with-code", "label": "Participation Agreement (Pacific Select Exec Separate Acct Pacific Mutual Life Ins)", "score": 18.0, "published": true}], "hash": "b30e121eed89b5095d99f258e1738979", "id": 3}, {"size": 23, "snippet": "The requirements of this Article are intended and will be construed to ensure that the allocations of the Company's income, gain, losses, deductions and credits have substantial economic effect under the Regulations promulgated under Section 704(b) of the Code.", "snippet_links": [{"key": "the-requirements", "type": "clause", "offset": [0, 16]}, {"key": "this-article", "type": "definition", "offset": [20, 32]}, {"key": "to-ensure", "type": "clause", "offset": [68, 77]}, {"key": "of-the-company", "type": "clause", "offset": [99, 113]}, {"key": "substantial-economic-effect", "type": "clause", "offset": [166, 193]}, {"key": "the-regulations", "type": "clause", "offset": [200, 215]}, {"key": "the-code", "type": "clause", "offset": [252, 260]}], "samples": [{"hash": "2EChLEpnKx9", "uri": "/contracts/2EChLEpnKx9#compliance-with-code", "label": "Limited Liability Company Operating Agreement (LK Secured Lending Reg a Fund, LLC)", "score": 32.225189209, "published": true}, {"hash": "eA2qsJnUat0", "uri": "/contracts/eA2qsJnUat0#compliance-with-code", "label": "Limited Liability Company Operating Agreement (LK Secured Lending Reg a Fund, LLC)", "score": 32.1485290527, "published": true}, {"hash": "ig4xCG5TmJ4", "uri": "/contracts/ig4xCG5TmJ4#compliance-with-code", "label": "Limited Liability Company Operating Agreement (LK Secured Lending Reg a Fund, LLC)", "score": 31.9842567444, "published": true}], "hash": "73d6739c2776a9fbad46645a85a81484", "id": 4}, {"size": 21, "snippet": "6.1. Section 817(h). The Trust will at all times invest money from the Contracts in such a manner as to ensure that the Contracts will be treated as variable contracts the Code and regulations thereunder. Without limiting the scope of the foregoing, the Trust shall ensure that each Fund will comply with Section 817(h) of the Code and Treasury Regulation 1.817-5 thereunder, relating to the diversification requirements for variable annuity, endowment, or life insurance contracts, and any amendments or other modifications to such Section and Regulation or successors thereto. The Trust shall notify the Company immediately upon having a reasonable basis for believing that a Fund has failed to so comply or that it might not comply in the future.", "snippet_links": [{"key": "the-trust", "type": "clause", "offset": [21, 30]}, {"key": "at-all-times", "type": "definition", "offset": [36, 48]}, {"key": "the-contracts", "type": "clause", "offset": [67, 80]}, {"key": "to-ensure", "type": "clause", "offset": [101, 110]}, {"key": "variable-contracts", "type": "definition", "offset": [149, 167]}, {"key": "code-and-regulations", "type": "definition", "offset": [172, 192]}, {"key": "the-foregoing", "type": "definition", "offset": [235, 248]}, {"key": "comply-with", "type": "clause", "offset": [293, 304]}, {"key": "treasury-regulation", "type": "definition", "offset": [336, 355]}, {"key": "relating-to", "type": "definition", "offset": [376, 387]}, {"key": "requirements-for", "type": "clause", "offset": [408, 424]}, {"key": "variable-annuity", "type": "definition", "offset": [425, 441]}, {"key": "insurance-contracts", "type": "clause", "offset": [462, 481]}, {"key": "modifications-to", "type": "clause", "offset": [511, 527]}, {"key": "the-company", "type": "clause", "offset": [602, 613]}, {"key": "immediately-upon", "type": "clause", "offset": [614, 630]}, {"key": "having-a", "type": "definition", "offset": [631, 639]}, {"key": "reasonable-basis", "type": "definition", "offset": [640, 656]}, {"key": "the-future", "type": "clause", "offset": [738, 748]}], "samples": [{"hash": "lkFEjyRD84Z", "uri": "/contracts/lkFEjyRD84Z#compliance-with-code", "label": "Participation Agreement (Symetra Separate Account Sl)", "score": 32.4387397766, "published": true}, {"hash": "kSaPhdqWLfg", "uri": "/contracts/kSaPhdqWLfg#compliance-with-code", "label": "Participation Agreement (Genworth Life & Annuity VA Separate Account 1)", "score": 18.0, "published": true}, {"hash": "fF3n3axXEwQ", "uri": "/contracts/fF3n3axXEwQ#compliance-with-code", "label": "Participation Agreement (Lincoln Benefit Life Variable Annuity Account)", "score": 18.0, "published": true}], "hash": "81d9a2514eaa4496525769c36f518a5d", "id": 5}, {"size": 19, "snippet": "The foregoing provisions of this Article relating to the allocation of Profits, Losses and other items for federal income tax purposes are intended to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2, and shall be interpreted and applied in a manner consistent with such Treasury Regulations. Notwithstanding anything to the contrary, nothing in this Article shall apply if it lacks \"economic effect.\"", "snippet_links": [{"key": "provisions-of-this-article", "type": "clause", "offset": [14, 40]}, {"key": "relating-to", "type": "definition", "offset": [41, 52]}, {"key": "allocation-of-profits", "type": "clause", "offset": [57, 78]}, {"key": "losses-and-other-items", "type": "clause", "offset": [80, 102]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [107, 134]}, {"key": "comply-with", "type": "clause", "offset": [151, 162]}, {"key": "treasury-regulations", "type": "definition", "offset": [163, 183]}, {"key": "consistent-with", "type": "definition", "offset": [266, 281]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [309, 349]}, {"key": "nothing-in-this-article", "type": "clause", "offset": [351, 374]}, {"key": "economic-effect", "type": "definition", "offset": [400, 415]}], "samples": [{"hash": "eVt0OhYqRdp", "uri": 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"updated": "2026-04-30T06:05:53+00:00", "also_ask": ["What are the minimum drafting elements to ensure clear compliance obligations?", "How can this clause be leveraged to allocate risk for code violations?", "What are the most common legal pitfalls or ambiguities in 'Compliance with Code' clauses?", "How do courts typically interpret and enforce these clauses in disputes?", "How does this clause compare to industry-standard compliance provisions?"], "drafting_tip": "Specify applicable codes, require written proof of compliance, and outline consequences for breaches to ensure clarity, accountability, and enforceability.", "explanation": "The 'Compliance with Code' clause requires parties to adhere to all relevant laws, regulations, and codes of practice applicable to their activities under the agreement. In practice, this means that any work performed, products supplied, or services rendered must meet the standards set by governing authorities, such as building codes, safety regulations, or industry-specific guidelines. This clause ensures that all contractual obligations are fulfilled in a lawful and standardized manner, reducing the risk of legal penalties and promoting safety and quality."}, "json": true, "cursor": ""}}