Payee Allocation Clause Samples
The Payee Allocation clause defines how payments are distributed among multiple recipients under an agreement. It typically specifies the proportion or method by which each payee receives their share, such as fixed percentages or according to a schedule, and may address scenarios like changes in payee identity or payment instructions. This clause ensures that all parties understand and agree to the allocation of funds, thereby preventing disputes and ensuring transparency in financial transactions.
Payee Allocation. If any payment to any person that is treated by the Partnership as the payment of an expense is recharacterized by a taxing authority as a Partnership distribution to the payee as a partner, such payee shall be specially allocated, in the manner determined by the General Partner, an amount of Partnership gross income and gain as quickly as possible equal to the amount of the distribution.
Payee Allocation. In the event any payment to any person that is treated by the Company as the payment of an expense is recharacterized by a taxing authority as a Company distribution to the payee as a Unitholder, such payee shall be specially allocated an amount of Company gross income and gain as quickly as possible equal to the amount of the distribution.