Examples of Target Capital Account in a sentence
No portion of the Profits for any Fiscal Year shall be allocated to a Member whose Partially Adjusted Capital Account is greater than or equal to its Target Capital Account for such Fiscal Year.
Without limitation, the Managing Partner may allocate in any particular fiscal period (i) items of income and gain to those Partners whose Capital Account balances are less than their Target Capital Account Amounts and (ii) items of loss and deduction to those Partners whose Capital Account balances are greater than their Target Capital Account Amounts, but in each case only up to an amount that would cause their Target Capital Account Amounts and Capital Account balances to be equivalent.
Net Profits and Net Losses and, if necessary, items of gross income shall be allocated to a Member whose Class B Common Interests are redeemed pursuant to Section 11.5(b) or Section 11.5(c) in the Company’s taxable year of such redemption to the extent such allocations are necessary to cause such Member’s Capital Account balance to equal such Member’s Target Capital Account.
If the Company has Profits for any Fiscal Year (determined prior to giving effect to this clause (a)), each Member whose Partially Adjusted Capital Account is greater than its Target Capital Account will be allocated, proportionately, items of Company expense or loss for such Fiscal Year equal to the difference between its Partially Adjusted Capital Account and Target Capital Account.
No portion of such Profits, if any, will be allocated to a Member whose Partially Adjusted Capital Account for the period under consideration is greater than its Target Capital Account for such period; and no portion of such Losses, if any, will be allocated to a Member whose Target Capital Account for the period under consideration is greater than its Partially Adjusted Capital Account for such period.