Oklahoma Clauses Relating to Capital Calls

• Category: Partnerships - Drafting Joint Venture Agreements
• State: Multi-State
• Control #: US-P0607-2BAM
• Format: Word; Rich Text

Description

This sample form, containing Clauses Relating to Capital Calls document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.

Oklahoma Clauses Relating to Capital Calls: Explained In the context of investment and financing agreements, Oklahoma Clauses Relating to Capital Calls are provisions that outline the procedures and conditions surrounding the capital calls made by limited liability companies (LCS) or other entities to its members or investors. These clauses enable the entity to require additional contributions from its members for various purposes like funding ongoing operations, financing new projects, or addressing unexpected financial needs. Types of Oklahoma Clauses Relating to Capital Calls: 1. Standard Capital Call Clause: This is the most common and basic type of clause found in investment agreements. It permits the LLC to issue a written notice to its members requesting additional capital contributions. The clause typically specifies the method and timeline for providing these contributions, ensuring transparency and fair treatment of all members. 2. Proportional Capital Call Clause: Some agreements may include clauses that require capital calls to be made proportionally to each member's ownership percentage in the entity. This ensures that all members contribute in relation to their ownership stake, preventing any unfair distribution of financial burden among the investors. 3. Accelerated Capital Call Clause: In cases where urgent funding is required, an accelerated capital call clause may be included. This clause authorizes the LLC to request immediate capital contributions from its members without the usual waiting period stated in standard clauses. It helps the entity address unforeseen expenses promptly. 4. Escalating Capital Call Clause: This type of clause is designed to address situations where multiple capital calls are needed over time. It sets forth a schedule or formula that specifies the increasing nature of capital contributions from the members as subsequent calls are made. This allows the entity to gradually increase capital investment, ensuring financial sustainability and minimizing sudden burdens on the members. 5. Unfunded Commitments Clause: Some agreements may include clauses related to unfunded commitments. These clauses outline the obligations of the members to make additional capital contributions when called upon, even if they have already fulfilled their initial capital commitment. This ensures that members remain liable for future capital calls until their commitment is fully satisfied. 6. Notice and Cure Period Clause: To provide fairness to the members, some agreements may include clauses specifying a notice and cure period. These clauses require the entity to issue a written notice to members prior to initiating a capital call, allowing them a specific period to fulfill their contribution obligations. This provides an opportunity for defaulting members to rectify their non-compliance before any severe consequences are imposed. Oklahoma Clauses Relating to Capital Calls play a crucial role in regulating the financial affairs of LCS and other entities operating under-investment agreements. They provide a framework for the entity to address its funding needs while ensuring transparency, fairness, and accountability among the members. It is important for both the entity and its members to fully understand and comply with these clauses to maintain a healthy and sustainable financial structure within the organization.