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HomeMy WebLinkAbout1196~ (2) Cash funds of the Partnersliip available for distribution will be distributed to FairEield and the Limited Partner until they have received their capital investment. If a portion of this has been borrawed, then the principal of such borrowings shall be repaid in full prior to any distribution. Thereafter, all cash flow will be distributed 50$ to the Managing General Pa.rtner and 50$ to Fairfield and the Limited Partner based upon their proportionate capital contributions. Any Partner who is allocated taxa~le income (netted from the inception of ttie project~ shall receive as a priority frum any distribution an amount equal to 50$ of said taxable income. Any said priority distribution snall be deducted From the next regular distribution to thati Partner. 8. Banking. The Managing General Partner shall open, in the name of the Partnership, and will thereafter maintain, a separate-bank account or bank accounts in the name of the Partnership, in which shall be deposited all of tne monies of the Partnership and no other monies. The funds of said account shall be used solely for the business of the Partnership and al? withdrawals therefrom are to be made upon checks signed by such person or persons as the Managing General Partner may designate from time to t ime . 9. Accounting, Kecords and P.eports. (a) Fiscal Year. The Partnership shall adopt a February year-end as its fiscal year for financial reporting and for Federal income tax purposes. (b1 Records ~nd Accounr ing . At a2Z tisr.es Cur ing the conti~~uance of the Partnership, the Managing General Partner shall keep, or cause to be kept, books of account, whieh shall be adequate and ap~ropriate for the Partnership's business, in which each transaction of the Partnership shall be entered fully and accurately. Such books and records may 5e kept on an accrual basis in accordance with the accounting methods followed by the Partnership for Federal income tax purposes. Books shall also be kept or appropriate adjusting entries provided to permit the preparation of periodic financial statements in accordance with generally accepted accounting principles. Fairfield may assist in the making of necessary decisions and elections that may be permitted in connection with preparing such statements to comply with said generally accepted accounting principles. Such books and records shall include such separate and aaditional accounts for each Partner as shall be necessary to refiect accurately the rights and interests of the respective Partners and shall specifically ~ ~ ~ ~.~_._..... _._ . _ .. ''~350 PbGE1195 $~~~ -6-