Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Default Member Loan Converts to Capital) | Practical Law

Additional Capital Contribution Provision in a 90/10 Real Estate Joint Venture (Default Member Loan Converts to Capital) | Practical Law

Additional capital contribution provisions that can be used in a limited liability company (LLC) 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. Additional contributions require consent of the members. If a member fails to fund, the non-defaulting member may make a default member loan that can be converted to a shortfall contribution if not repaid within a certain period of time. 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 (Default Member Loan Converts to Capital)

by Practical Law Real Estate
MaintainedUSA (National/Federal)
Additional capital contribution provisions that can be used in a limited liability company (LLC) 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. Additional contributions require consent of the members. If a member fails to fund, the non-defaulting member may make a default member loan that can be converted to a shortfall contribution if not repaid within a certain period of time. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for both members.