Common use of Priority of Distribution Clause in Contracts

Priority of Distribution. For the fiscal year in which the Company terminates, the net assets of the Company shall be distributed as follows: (a) To the creditors of the Company who are not Members, with such distributions to be in the order of priority as provided by law; (b) To each Member in repayment of and in proportion to the amount of any loan made to the Company, exclusive of his capital contributions, plus accrued interest; and (c) To each Member in repayment of and in proportion to his capital account.