Common use of Additional Capital Clause in Contracts

Additional Capital. Capital Contributions may be amended from time to time, according to the requirements of the Partnership provided that the interests of the Partners are not affected, except with the unanimous consent of the Partners. No Partner will be required to make Additional Capital Contributions. Whenever additional capital is determined to be required and an individual Partner is unwilling or unable to meet the additional contribution requirement within a reasonable period, as required by Partnership business obligations, remaining Partners may contribute in proportion to their existing Capital Contributions to resolve the amount in default. In such cases, the allocation of profits or losses among all the Partners will be adjusted to reflect the aggregate change in the Capital Contributions by the Partners. Any advance of money to the Partnership by any Partners in excess of the amounts provided for in this Agreement or subsequently agreed to as Additional Capital Contribution will be deemed a debt owed by the Partnership and not an increase in Capital Contribution of the Partner. This liability will be repaid with interest at rates and times to be determined by a majority of the Partners within the limits of what is required or permitted in the Act. This liability will not entitle the lending Partner to any increased share of the Partnerships profits nor to greater voting power. Such debts may have preference or priority over any other payments to Partners as may be determined by a majority of Partners.