HomeMy WebLinkAbout0777 S~ction 3 hereof or dissolved in accordance ~~ith Section 15
hcreinafter. - ~
~ (b) ?n the ev~nt that any party: ;
~
~
(i) files a voluntary petition in bankruptcy; ~
(ii) is adjudica~ed a bankrupt; or ~
~
~
iiii) attempts to ma!ce any assS.gnmen~s or transfer
of his joint ven~ure interest, except as provided `
in Section 8 hereof; ,
then, the joint venture shall be dissolved and liquidated in the
manner provided in Section 14 hereof. ~ -
14. Dissolution and Liquidation of the Joint Venture. ~
(a) The joint venture shall be dissolved upon the occurence ~
o~ any of the events specified in Secti~ns 3 and 14 hereof. ~
' i
x
(b) Upon the dissolution o£~the joint venture, unless one ~
. . ~
par~y is purchasing the interest of the oth~r party hereto in a manner i
provided herein, the partiesrshall proceed to liguidate the assets of #
~
i
the joint ven~ure, either by sale or distribution in kind, and wind ~
<
up its affairs. A reasonable time shall be aZlo~~red for the orderly ;
liquidation of its assets so as.to minimize the normal losses attendant ~
~
~
upon such a lzquidation. The proceeds of liquidation shall be applied ~
and distributed in the ~ollowing order in priority: ~
~
(i) First, to the payments of the debts and liabilities ~
;
~
~
_ _of the joint venture and the exp~nses of liquidation ~
. ~
in the order of priority as provided by law, and ;
~
i
to tre_establishment of any reserves which the ~
~arties shall deem reasonably necessary for any ~
~
contingent or unforeseer. liabilities or obligations
of the joint ven*ure. Said reser~~es shall be paid
o~~er to a bank to be hel~ in escrow for the purpose ;
~
of pa~ing any su~h contincent or unforeseen liabiZitie:~
or obligations and, at the espiratio;~ of such period ~
. f
as the parties sha21 deem a3visable, of distributing s
the balance in the manner pr~vided hereinafter.
in this Section; then to
i
- e~ i
~ E ri iGS~ FAGE 7~
-