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Hi and thanks for your question.
The provisions should be in the LP agreement to be effective. I suppose if the preferential payments were not made one could sue based upon the representations of the PPM, but that is a potential hassle that no one is going to want to sign up for.
By having it in the LP agreement, the positions are protected.
Also, if actual certificates were distributed, the preferential treatment should be listed on those.
You might also check the LP filings with the secretary of state, since the preferences should be listed there as well. Do you know how to check that online?
I thought so, and yes I know how to use SOSDirect in Texas. LPs, especially for real estate which this is, can be less straightforward in their docs than other business deals so I thought I would check. Thanks.