Common use of Right to Make Section 754 Election Clause in Contracts

Right to Make Section 754 Election. The Board, acting pursuant to Section 3.1(a), may make or revoke, on behalf of the Company, an election in accordance with Code Section 754, so as to adjust the basis of Company property in the case of a Distribution of property within the meaning of Code Section 734, and in the case of a transfer of a Company interest within the meaning of Code Section 743. Each Member shall, upon request of the Board, supply the information necessary to give effect to such an election. Upon Transfer of a Member Interest, the Transferee may request that an election in accordance with Code Section 754 be made, in which event the Company, upon approval by the Board, shall make the election for the Fiscal Year in which such transfer occurs.

Right to Make Section 754 Election. The Except as provided herein, the Board, acting pursuant to Section 3.1(a)3.7, may make or revoke, on behalf of the Company, an election in accordance with Code Section 754, so as to adjust the basis of Company property in the case of a Distribution of property within the meaning of Code Section 734, and in the case of a transfer of a Company interest within the meaning of Code Section 743. Each Member shall, upon request of the BoardTax Matters Member, supply the information necessary to give effect to such an election. Upon Transfer of a Member an Interest, the Transferee may request that an election in accordance with Code Section 754 be made, in which event the Company, upon approval by the BoardBoard thereof pursuant to Section 3.7, shall make the election for the Fiscal Year in which such transfer Transfer occurs.