Common use of Loans from Partners Clause in Contracts

Loans from Partners. Except as otherwise provided in Section 4.2, (a) loans by a Partner to the Partnership shall not be considered Capital Contributions, (b) if any Partner or Assignee shall advance funds to the Partnership in excess of the amounts required hereunder to be contributed by him or it to the capital of the Partnership, the making of such advances shall not result in any increase in the amount of the Capital Account of such Partner or Assignee, (c) the amounts of any such advances shall be a fully recourse debt of the Partnership to such Partner or Assignee and (d) no nonrecourse loans or any loans described above may be made by any Partner to the Partnership without the express consent of each Partner.