Common use of Excess Nonrecourse Liability Safe Harbor Clause in Contracts

Excess Nonrecourse Liability Safe Harbor. Pursuant to Regulations Section 1.752-3(a)(3), for purposes of determining each Partner's proportionate share of the "excess nonrecourse liabilities" of the Partnership (as defined in Regulations Section 1.752-3(a)(3)), the Partners' respective interests in Partnership profits shall be determined in accordance with each Partner's Partnership Interest; PROVIDED, HOWEVER, that each Partner who has contributed an asset to the Partnership shall be allocated, to the extent possible, a share of "excess nonrecourse liabilities" of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the "Liability Shortfall"). In the event there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse liabilities equal to the Liability Shortfall, then an amount of nonrecourse liabilities to the extent of, the Liability Shortfall shall be allocated to the Upper Tier Limited Partnership. The intended effect of using the "remedial method" described in Regulation Section 1.704-3(d) shall be that the Upper Tier Limited Partnership shall receive an allocation of Partnership Nonrecourse Liabilities that on the date hereof is not less than $380,000,000.

Excess Nonrecourse Liability Safe Harbor. Pursuant to Regulations Section 1.752-3(a)(3), for purposes of determining each Partner's proportionate share of the "excess nonrecourse liabilities" of the Partnership (as defined in Regulations Section 1.752-1.752- 3(a)(3)), the Partners' respective interests in Partnership profits shall be determined in accordance with each Partner's Partnership Interest; PROVIDEDprovided, HOWEVERhowever, that each Partner who has contributed an asset to the Partnership shall be allocated, to the extent possible, a share of "excess nonrecourse liabilities" of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the "Liability Shortfall"). In the event there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse liabilities equal to the Liability Shortfall, then an amount of nonrecourse liabilities to the extent of, the Liability Shortfall shall be allocated to the Upper Tier Limited Partnership. The intended effect of using the "remedial method" described in Regulation Section 1.704-3(d) shall be that the Upper Tier Limited Partnership shall receive an allocation of Partnership Nonrecourse Liabilities that on the date hereof is not less than $380,000,000.

Excess Nonrecourse Liability Safe Harbor. Pursuant to Regulations Section 1.752-1.752- 3(a)(3), for purposes of determining each Partner's proportionate share of the "excess nonrecourse liabilities" of the Partnership (as defined in Regulations Section 1.752-3(a)(3)), the Partners' respective interests in Partnership profits shall be determined in accordance with each Partner's Partnership Interest; PROVIDEDprovided, HOWEVERhowever, that each Partner who has contributed an asset to the Partnership shall be allocated, to the extent possible, a share of "excess nonrecourse liabilities" of the Partnership which results in such Partner being allocated nonrecourse liabilities in an amount which is at least equal to the amount of income pursuant to Section 704(c) of the Code and the Regulations promulgated thereunder (the "Liability Shortfall"). In the event If there is an insufficient amount of nonrecourse liabilities to allocate to each Partner an amount of nonrecourse liabilities equal to the Liability Shortfall, then an amount of nonrecourse liabilities to the extent of, the Liability Shortfall shall be allocated to the Upper Tier Limited PartnershipPartner. The intended effect of using the "remedial method" described in Regulation Section 1.704-3(d) shall be that the Upper Tier Limited Partnership Partner shall receive an allocation of Partnership Nonrecourse Liabilities that on the date hereof is not less than $380,000,000129,700,000.