IPO II, A Partnership, Gerald R. Forsythe, Tax Matters Partner - Page 11

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          “based on the facts and circumstances at the time of the                    
          determination.”  Sec. 1.752-2(b)(3), Income Tax Regs.  Such facts           
          and circumstances take into account all statutory and contractual           
          obligations relating to the partnership liability, including                
          contractual obligations outside of the partnership agreement such           
          as guaranties.  Id.  Further, the regulations assume that all               
          partners and related persons who have obligations actually                  
          perform those obligations, “unless the facts and circumstances              
          indicate a plan to circumvent or avoid the obligation.”  Sec.               
          1.752-2(b)(6), Income Tax Regs.                                             
               Initially, we must determine whether Indeck Overseas, as a             
          member of IPO II, was required by statute, by IPO II’s operating            
          agreement, or by any other contractual arrangements it entered              
          into to directly pay the Nationsbanc loan or any other                      
          obligations of IPO II.  The Illinois Limited Liability Company              
          Act (LLC Act) provides, in relevant part:                                   
               � 10-10.  Liability of members and managers.                           
               (a) Except as otherwise provided in subsection (d) of this             
               Section, the debts, obligations, and liabilities of a                  
               limited liability company, whether arising in contract,                
               tort, or otherwise, are solely the debts, obligations, and             
               liabilities of the company.  A member or manager is not                
               personally liable for a debt, obligation, or liability of              
               the company solely by reason of being or acting as a member            
               or manager.                                                            
                         *    *    *    *    *    *    *                              
               (d) All or specified members of a limited liability company            
               are liable in their capacity as members for all or specified           
               debts, obligations, or liabilities of the company if:                  





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Last modified: May 25, 2011