Common use of DEFAULTS IN PAYMENT Clause in Contracts

DEFAULTS IN PAYMENT. (a) The Partnership shall be entitled to enforce the obligations of each Partner to make contributions to capital set forth in Section 3.3 and the Partnership shall have all remedies available at law or in equity in the event any such contribution is not so made. (b) In the event that any Limited Partner (other than a Limited Partner who is excused or excluded from an investment pursuant to Section 3.4) fails to make a Capital Contribution (including any Capital Contribution to pay the Management Fee or to any Alternative Vehicle or Parallel Regulatory Vehicle) when required, and such Limited Partner shall not have rectified such failure within five (5) Business Days of receipt of written notice of such failure from the General Partner (a "Defaulting Partner"), then the General Partner may, in its sole discretion, elect to charge such Limited Partner interest at an annual rate equal to LIBOR plus 6% (not to exceed the highest rate permitted by applicable law) on the amount due from the date such amount became due until the earlier of (i) the date on which such payment is received by the Partnership or (ii) the date of any notice given to such Defaulting Partner by the General Partner pursuant to Sections 3.7(c), 3.7(d) or 3.7(e), plus out-of- pocket legal and collection costs (with such interest and costs to be treated as income of or reimbursement to the Partnership, and not as a Capital Contribution). The amount charged as provided in this Section 3.7(b) shall not exceed the amount of such Defaulting Partner's Capital Account. (c) In addition to the other rights provided in this Section 3.7 and to the extent not inconsistent with such other rights, the General Partner may, in its sole discretion, elect to declare, by notice to a Defaulting Partner, that: (i) Such Defaulting Partner's Capital Commitment shall be deemed to be reduced to the amount of any contributions of capital timely made pursuant to Section 3.3 or