Payment Methods & Requirements Regarding Partnership is provided to inform you about this document in question and assist in its preparation. This is a reasonably standard approach to partnership contributions and additional contributions if required. Most business enterprises require follow on investments. Partnerships often require founding limiteds to contribute a preset amount. If you are a prospective limited, be sure you can live up to the terms of the additional capital call, should it be made.
- Make multiple copies. Give one to each related party. Keep one in the related file.
Payment Methods & Requirements Regarding Partnership
This is written to inform you as a prospective Limited Partner about the financial terms of the Partnership. This is an informal notice. The Partnership document itself governs all such matters.
Capital contributions listed in the LIMITED PARTNERSHIP agreement may be paid in the following installments:
____% at time of signing, balance in ____ days, with 12% interest per annum.
Limited partners shall be required to make additional capital contributions in the discretion of the majority of the general partners, not to exceed ____ percent of their original capital contribution. Should any limited partner fail to make an additional capital contribution when required to do so, then the partnership may debit any share of profit of the partner then due or due to be paid in the future, or may in its discretion either:
(1) reduce the percentage ownership of the partner by that proportion as their contribution was not made; or,
(2) sue the limited partner for the required contribution; or;
(3) obtain a substitute limited partner who shall receive the defaulting partners full interest in the partnership.