Loans From Shareholders Sample Clauses
The "Loans From Shareholders" clause defines the terms under which shareholders may provide loans to the company. It typically outlines the conditions for such loans, including interest rates, repayment schedules, and any security or priority these loans may have compared to other company debts. For example, it may specify whether shareholder loans are subordinated to bank loans or if they require board approval. The core function of this clause is to ensure transparency and fairness in financial dealings between shareholders and the company, preventing conflicts of interest and clarifying the rights and obligations associated with shareholder financing.
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Loans From Shareholders. Loans by a Shareholder to the Company shall not constitute Capital Contributions. If any Shareholder shall advance funds to the Company (other than funds to purchase Member Interests), then the making of such excess advances shall not result in any increase in the amount of the Capital Account of such Shareholder. The amount of any such excess advances shall be a debt obligation of the Company to such Shareholder and shall be payable or collectible only out of the Company Assets in accordance with the terms and conditions upon which such advances are made.
Loans From Shareholders. The Company may from time to time borrow funds from Shareholders on such terms and conditions deemed acceptable by the Board of Managers. Loans by Shareholders to the Company shall not be considered Consideration for a Unit or any other type of special or unique consideration. The amount of such loans shall be a debt of the Company to such Shareholder and shall be payable or collectable in accordance with the terms and conditions upon which such loans are made.
Loans From Shareholders. Loans by Shareholders to the LLC shall not be considered Capital Contributions. If any Shareholder shall loan funds to the LLC in excess of the amounts required hereunder to be contributed by such Shareholder to the capital of the LLC, the making of such loans shall not result in any increase in the amount of the Capital Account of such Shareholder. The amount of any such loans shall be a debt of the LLC to such Shareholder and shall be payable or collectible in accordance with the terms and conditions upon which such loans are made; provided, that such terms and conditions are no more favorable to such lending Shareholder than those which would be agreed to in an orderly transaction with a willing, unaffiliated lender in an arm's-length transaction.
Loans From Shareholders. The obligations to each of ▇▇▇▇ ▇▇▇▇▇▇▇, M.D. in the principal amount of $680,820.58 and ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ in the principal amount of $100,000; provided, however, that the such obligations shall be amended and restated in the form of the Subordinated Promissory Note attached hereto as Exhibit B (the “Note”). At the Closing, Buyer shall execute a Note in favor of each of ▇▇. ▇▇▇▇▇▇▇ and ▇▇. ▇▇▇▇▇▇▇▇ in the principal amount set forth above.
Loans From Shareholders. The Board may, from time to time make a written request to the Shareholders for a Shareholder Loan. The Board’s request for Shareholder Loans shall be made to each Shareholder pro rata in proportion to its shareholdings in the capital of the Corporation. A Shareholder may advance the money requested from it within 15 Business Days of receipt of the written request for the Shareholder Loan but shall not be required to do so. If a Shareholder advances funds to the Corporation pursuant to the terms of this clause 6.1, then the Shareholder shall be entitled to receive interest on the amount advanced by it at a rate equal to the Prime Rate plus 3% per annum, which interest shall be payable monthly on the outstanding balance of such disproportionate Shareholder Loan until that amount is repaid.