conversion clause

conversion clause

(1) A clause in a mortgage loan that allows the borrower to convert from an adjustable-rate mortgage to a fixed-rate mortgage,or that allows the borrower to convert from interest-only construction financing to a lower interest rate and usually fully amortizing permanent financing. (2) A clause sometimes seen in leases and real estate sales contracts providing that any personal property left on the premises after lease expiration or after real estate closing may be discarded or retained, as the real estate owner desires, and will not constitute a conversion. (In other words,the owner has no responsibility to keep the property in a safe place and/or attempt to return it to the former occupant.)

References in periodicals archive ?
The company said that at the 2011 Annual General Meeting, a share conversion clause was added to Industriv?
The increase in the number of shares and votes is caused by the company's recent issue of 26,100,000 shares of series C, which shares have subsequently been repurchased by the company and converted into shares of series B, by virtue of a conversion clause in the articles of association.
Advisors who talk with clients about this option will gain the benefit of that person's trust in addition to the potential for fresh business, given that the original policy does indeed include a conversion clause.
Where a debt is to be restructured by a bank, the aforesaid conversion clause will be incorporated before the restructuring agreement is entered into with the defaulting company.
An equity involvement by RBCC is provided for in the agreement, with the option for RBCC to purchase a percentage of the shares of the company via the exercise of the conversion clause in the agreement.
There will be a mandatory conversion similar to CoCos, but also a voluntary conversion clause on the part of the holder," he said.
Most bond issues are in fact now denominated solely in ECU but include a Euro conversion clause ensuring automatic conversion.
One solution is to use a conversion clause that assures incumbents some protection during the transition to a more flexible labor market.
Shocked and depressed, he secluded himself in his apartment for several weeks, emerging to discover he had lost his opportunity to take advantage of the automatic conversion clause that would have changed his group health plan to an individual plan.
The agreement provides for an equity involvement by RBCC with the option for RBCC to purchase a substantial percentage of the shares of the company by the exercise of the conversion clause in the agreement.
These conversions were carried out at the request from shareholders in accordance with the conversion clause in Medicover's articles of association.
ST) reported on Thursday that at the request of a shareholder, 5,453 class A shares have been converted to class B shares during March 2016 with the support of the conversion clause in the Articles of Association.