Initial Capital Contribution Clause
(Joint Venture Agreement) (Property Contributed In Exchange for Membership Interest)

Summary

This initial capital contributions clause may be included in a limited liability company operating agreement (also referred to as a joint venture agreement). This clause includes practical guidance and drafting notes. This clause should be used when one member contributed real property to the joint venture in exchange for membership interests and another member has contributed capital. The capitalized terms and section references used in this clause should be conformed to the relevant joint venture operating agreement. In this clause, the term "Managing Member" is what is commonly referred to as the operating member of the joint venture and the "Investor Member" is what is commonly referred to as the capital member of the joint venture. See Limited Liability Company Operating Agreement (Real Estate Joint Venture) for additional clauses and definitions to be contained in a joint venture agreement. For a full listing of key content covering real estate joint ventures (90/10 ownership split), see Real Estate Joint Venture Resource Kit (90/10 Real Estate Joint Venture). For a full listing of key content covering commercial real estate, see First Year Associate Resource Kit: Real Estate.