Adjusted Capital Contribution Law and Legal Definition

"Adjusted Capital Contribution" is a term typically defined in a partnership or LLC agreement as the total contribution (in cash or other property) required of such member or partner, less specified amounts. For example, one partnership agreement defines it as follows:

"Adjusted Capital Contribution" means, as of any day, a partner's Capital Contributions, as defined below, adjusted as follows: (a) Increased by the amount of any Partnership liabilities which, in connection with distributions made to a Partner hereunder, are assumed by such Partner or are secured by any Partnership property distributed to such Partner; and (b) Reduced by (i) the amount of distributable cash, excluding any priority return, (ii) the Gross Asset Value, as defined below, of any Partnership Property distributed to such Partner, and (iii) the amount of any liabilities of such Partner assumed by the Partnership or which are secured by any Property contributed by such Partner to the Partnership. In the event any person transfers all or any portion of his/her Units in accordance with the terms of this Agreement, his/her transferee shall succeed to the Adjusted Capital Contribution of the transferor to the extent it relates to the transferred Units.