Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Member Cap) | Practical Law

Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Member Cap) | Practical Law

Additional capital contribution provisions that can be used in a limited liability company operating agreement for a real estate joint venture, formed between an operating member, which is the minority member, and an investor member, which is the majority member. In these clauses, the members are obligated to make additional contributions up to a specified capped amount and, thereafter, additional contributions are optional. If a member fails to fund a required contribution, the non-defaulting member has the option to make a default member loan or a shortfall contribution and dilute the defaulting member's percentage interest. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for both members.

Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Member Cap)

Practical Law Standard Clauses w-003-2031 (Approx. 16 pages)

Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Member Cap)

by Practical Law Real Estate
MaintainedUSA (National/Federal)
Additional capital contribution provisions that can be used in a limited liability company operating agreement for a real estate joint venture, formed between an operating member, which is the minority member, and an investor member, which is the majority member. In these clauses, the members are obligated to make additional contributions up to a specified capped amount and, thereafter, additional contributions are optional. If a member fails to fund a required contribution, the non-defaulting member has the option to make a default member loan or a shortfall contribution and dilute the defaulting member's percentage interest. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for both members.