Common use of Failure to Make Contributions Clause in Contracts

Failure to Make Contributions. If a partner fails to make a required capital contribution within the time agreed for a partner's contribution, the remaining partners may, by unanimous vote, agree to reschedule the time for payment of the capital contribution by the late-paying partner, setting any additional repayment terms, such as a late payment penalty, rate of interest to be applied to the unpaid balance, or other monetary amount to be paid by the delinquent partner, as the remaining partners decide. Alternatively, the remaining partners may, by unanimous vote, agree to cancel the partner status of the delinquent partner, provided any prior partial payments of capital made by the delinquent partner are refunded promptly by the General Partnership to the partner after the decision is made to terminate the partner status of the delinquent partner.