recapture clause

recapture clause

(1) A clause in a lease setting out conditions under which the landlord may recapture the premises even without a default by the tenant.A common usage occurs when the tenant wishes to sublease or assign its space for a profit—the new occupant will pay a higher rental rate than the tenant is paying to the landlord.In such a circumstance,the landlord will want to recapture the space and rent it directly to the new tenant or it will want to share in the lease profits.(2) A clause in a statute that provides exceptions to an exception.For example,one clause in the Clean Water Act grants an exception to the requirement to obtain a permit.But,the recapture clause “recaptures”the permit requirement under certain limited circumstances.

References in periodicals archive ?
The bill's provision removes a recapture clause -- requiring the payback of tax credits upon conversion of a tax credit property into a condo development.
It covers such topics as operating expense caps, fair sublease/assignment recapture clauses, lease auditing, including the use of contingent auditors, evolving issues of energy deregulation, indoor air pollution, and mitigation of damages and the requirement of reasonableness in subleasing.
These arrangements involve integrating self-insurance, profit recapture clauses and special coverage terms - including insurance for currency fluctuation in one case.