Defaulted Capital Commitment Sample Clauses
The Defaulted Capital Commitment clause defines the consequences and procedures that apply when an investor fails to fulfill their agreed-upon capital contributions to a fund or investment vehicle. Typically, this clause outlines the steps the fund manager may take, such as imposing penalties, reallocating the defaulted commitment among other investors, or even restricting the defaulting investor’s rights. Its core practical function is to protect the fund and its participants from the financial risks and disruptions caused by an investor’s failure to meet their funding obligations.
Defaulted Capital Commitment. Prior to an Exchange Listing, with respect to the Remaining Capital Commitment of any Defaulting Member, the Investment Manager may (i) admit to the Fund, including in connection with the sale of a Defaulting Member’s Units in accordance with Section 5.2(d), a Substitute Member to assume all or any portion of such Remaining Capital Commitment on the terms and conditions (to the extent applicable) set forth in Section 10.2 without the consent of any other Member, or (ii) offer to the non-Defaulting Members, subject to such timing and other conditions as the Investment Manager may impose, the opportunity to increase their respective Remaining Capital Commitments in proportion to their relative Capital Commitment Percentages (with a similar proportionate right to further increase their respective Remaining Capital Commitments in the event that one or more non-Defaulting Members declines such offer), up to an aggregate amount equal to such Defaulting Member’s Remaining Capital Commitment. The Investment Manager shall revise the Schedule to reflect the admission of any Substitute Member or change in Capital Commitments contemplated by this Section 5.2(c).
Defaulted Capital Commitment. With respect to the Remaining Capital Commitment of any Defaulting Partner (the “Defaulted Capital Commitment”), the General Partner may admit to the Fund a Substitute Partner to assume all or a portion of the balance of such Defaulted Capital Commitment on such terms and upon the delivery of such documents as the General Partner shall determine to be appropriate up to an amount equal in the aggregate to the Defaulted Capital Commitment. The General Partner shall make such revisions to Schedule A hereto as may be necessary to reflect the change in Partners and Capital Commitments contemplated by this Section 5.3(b) .
Defaulted Capital Commitment. With respect to the Remaining Capital Commitment of any Defaulting Partner (the “Defaulted Capital Commitment”), the General Partner shall offer to the Non-Defaulting Partners, subject to such timing and other conditions as the General Partner may impose, the opportunity to increase their Remaining Capital Commitments pro rata in accordance with their Capital Commitments (with the right to increase proportionately their respective shares if one or more Non-Defaulting Partners declines such offer), up to an amount equal in the aggregate to the Defaulted Capital Commitment. To the extent that the Non-Defaulting Partners decline or are otherwise unable to acquire the Defaulted Capital Commitment in accordance with the preceding sentence, the General Partner may admit to the Fund a Substitute Partner to assume all or a portion of the balance of such Defaulted Capital Commitment on such terms and upon the delivery of such documents as the General Partner shall determine to be appropriate. The General Partner shall make such revisions to the Register as may be necessary to reflect the change in Partners and Capital Commitments contemplated by this Section 5.5(c).