DIY Legal Forms

“Help us to stay online by your kind donation.

Every penny will help.”


Security For Additional Capital Contribution

1. Security for Additional Capital Contribution. The Limited Partners may be obligated, from time to time, to make additional capital contributions to the partnership (Partnership), as provided for in Paragraph ........ of this Agreement. Each Limited Partner is to deliver to the General [or, Managing] Partner a clean, irrevocable letter of credit in an amount equal to such Limited Partner's maximum additional capital contribution, stipulated in Paragraph ........ and naming Partnership as beneficiary.

2. Right to Draw. The General [or, Managing] Partner may draw on such letter of credit whenever a Limited Partner fails to remit its additional capital contribution to Partnership as of the end of the due date provided in the notice required under Paragraph ........ of this Agreement.

3. Release. A letter of credit will no longer be required of any Limited Partner who has made the maximum additional capital contribution to Partnership, stipulated under Paragraph ........, and such Limited Partner's letter of credit in the hands of Partnership shall be returned to that Limited Partner.