IPO II, A Partnership, Gerald R. Forsythe, Tax Matters Partner - Page 12

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                    (1) a provision to that effect is contained in the                
                    articles of organization; and                                     
                    (2) a member so liable has consented in writing to the            
                    adoption of the provision or to be bound by the                   
                    provision.                                                        
          805 Ill. Comp. Stat. Ann. 180/10-10 (West Supp. 2003).  Section             
          2.4 of the operating agreement, quoted previously, provides that            
          no member or manager of IPO II is obligated for any debts,                  
          obligations, or liabilities of IPO II.  Moreover, the LLC Act               
          does not establish a statutory obligation on the part of Indeck             
          Overseas to contribute to IPO II to meet IPO II’s obligations,              
          either during its operation or upon its liquidation and                     
          dissolution, unless a promise is otherwise made by Indeck                   
          Overseas to contribute.  See 805 Ill. Comp. Stat. Ann. 180/20-5,            
          180/25-45 (West Supp. 2003).  The record is devoid of any                   
          evidence of a promise by Indeck Overseas to contribute to IPO II            
          or to otherwise directly become responsible for IPO II’s debts,             
          obligations, or liabilities including the Nationsbanc loan.                 
          Indeck Overseas did not guarantee the Nationsbanc loan.                     
          Consequently, there is no evidence that in a constructive                   
          liquidation Indeck Overseas would directly bear the economic risk           
          of loss for the Nationsbanc loan.                                           
               A finding that Indeck Overseas did not directly bear                   
          economic risk of loss does not end the inquiry.  Economic risk of           
          loss borne by a “related person” can also establish a recourse              
          liability for Indeck Overseas.  See sec. 1.752-2(a), Income Tax             





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