In a partnership, loans taken out by the general partners
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Loan Clauses
In an operating agreement or contract, partners will typically outline one of three ways that a partner loan may be treated. First, it may be considered as a loan that will be paid back whenever the funds become available. In the event the company dissolves, the loan will be paid back only if there is money to cover it. Second, the loan may be set to be paid back within a certain amount of time after the money is loaned. This type of loan is often made to a stable business that simply needs more cash on hand. Third, the loan may be viewed as an investment in the company to be paid back with a specified amount of interest over a period of time that the partners deem acceptable. Loans like this are often made to finance growth and expansion into new markets.
In an operating agreement or contract, partners will typically outline one of three ways that a partner loan may be treated. First, it may be considered as a loan that will be paid back whenever the funds become available. In the event the company dissolves, the loan will be paid back only if there is money to cover it. Second, the loan may be set to be paid back within a certain amount of time after the money is loaned. This type of loan is often made to a stable business that simply needs more cash on hand. Third, the loan may be viewed as an investment in the company to be paid back with a specified amount of interest over a period of time that the partners deem acceptable. Loans like this are often made to finance growth and expansion into new markets.
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