LIQUIDATING INTEREST definition

LIQUIDATING INTEREST has the meaning set forth in Section 13.2(a).

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LIQUIDATING INTEREST means a preferential limited ownership interest in a capital surplus account created by the predecessor of the Corporation and known as the "Restricted Contributed Capital Surplus Account". The Liquidating Interest has been granted to the United States Small Business Administration in conjunction with a redemption at a discount of the predecessor's Series A Preferred Stock, with a 3% dividend rate, formerly held by the United States Small Business Administration, as contemplated and authorized by Public Law 101-162, dated November 21, 1989.

LIQUIDATING INTEREST means a preferential limited ownership interest ---------------------- in a new capital surplus account to be created by the corporation and to be known as the Restricted Contributed Capital Surplus Account. The "Liquidating Interest" may only be granted to the United States Small Business Administration and only in conjunction with the corporation's repurchase from the United States Small Business Administration at a discount of the corporation's outstanding 3% Preferred shares

Examples of LIQUIDATING INTEREST in a sentence

• Any sale of a Liquidating Interest pursuant to this Section 13.2(b) shall be deemed a Transfer subject to the terms and conditions of Section 13.1, including approval by Series One Members representing a Supermajority in Interest.

• Any Transferee acquiring a Liquidating Interest will become responsible for the Unfunded Capital Commitment related to such Liquidating Interest so acquired.

• If the negotiated price for such Liquidating Interest is less than the price set forth in the Purchase Notice, then the Non-Liquidating Members will be given the right, but not the obligation, to acquire the Liquidating Interest proposed to be sold to a third party, at such negotiated price, with the terms and timing of such option to be reasonably determined by the Manager.

• Any Non-Liquidating Member acquiring the Liquidating Interest will become responsible for the Unfunded Capital Commitment related the Liquidating Interest acquired by such Member.

• Notwithstanding the foregoing, the Manager may decline to make such offer to purchase the Liquidating Interest to any Member if the Manager is advised by counsel that the participation of such Member would result in any of the consequences described in Section 13.1(b) or otherwise result in a violation of law or regulation or otherwise result in material adverse consequences to the Company, any Series, or any Member.

• Upon written notification by SBA of the occurrence of any Event of Default (as hereinafter defined), the value of the Liquidating Interest shall become fixed at the level immediately preceding the Event of Default and shall not decline further until such time as the default is cured or waived.

• The Liquidating Interest shall expire on the latest to occur of (i) the date sixty (60) months from the date of this Agreement, (ii) the date that the Note shall be paid and satisfied in full, or (iii) if an Event of Default has occurred and such default has been cured or waived, such later date on which the Liquidating Interest is fully amortized.

• Subsequent to the cure or waiver of the default, the Liquidating Interest shall continue to decline at the rate set forth in this Section 3.1.

• In the event the Note is paid in full prior to sixty (60) months from the date of this Agreement, then the balance of the Liquidating Interest as of such date shall thereafter decline at the end of each month by an amount equal to the remaining amount of the Liquidating Interest divided by the difference between sixty (60) months and the number of months expired since the date of this Agreement.

• In the event the Note is paid in full subsequent to the date sixty (60) months from the date of this Agreement, the Liquidating Interest shall be extinguished.

More Definitions of LIQUIDATING INTEREST

LIQUIDATING INTEREST means a preferential limited ownership interest in the Restricted Contributed Capital surplus account granted to SBA by the SSBIC as of the date of this Agreement. The initial value of the Liquidating Interest shall equal the amount of the Discount.

LIQUIDATING INTEREST means a preferential limited ownership interest in a NOW capital surplus account to be created by the corporation and to be known as the RESTRICTED CONTRIBUTED CAPITAL SURPLUS ACCOUNT. The "Liquidating Interest" may only be granted to the United States Small Business Administration and only in conjunction with a redemption at a discount of the Corporation's outstanding 3% Preferred Stock held by the United States Small Business Administration, as contemplated and authorized by Public Law 101-162, dated November 21, 1989.