Common use of Distribution Upon Liquidation Clause in Contracts

Distribution Upon Liquidation. (a) After payment of liabilities owing to creditors, the General Partners or liquidator shall set up such reserves as they or he deems reasonably necessary for any contingent or unforeseen liabilities or obligations of the Partnership. Said reserves may be paid over by the General Partners or liquidator to a bank, to be held in escrow for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the General Partners or liquidator may deem advisable, such reserves shall be distributed to the partners or their assigns in the manner set forth in subsection (b) below.

Distribution Upon Liquidation. (a) After payment of liabilities owing to creditors, the General Partners Partner or such liquidator shall set up such reserves as they or he its deems reasonably necessary for any contingent or unforeseen liabilities or obligations of the Partnership. Said reserves may be paid over by the such General Partners Partner or such liquidator to a bank, to be held in escrow for the purpose of paying any such contingent or unforeseen liabilities or obligations and, at the expiration of such period as the such General Partners Partner or such liquidator may deem advisable, such reserves shall be distributed to the partners Partners or their assigns in the manner set forth in subsection (bSection 9.02(b) below.