safe harbor

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Safe harbor

Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Safe Harbor

1. An anti-takeover measure in which a potential target company buys a subsidiary in an industry that is so strictly regulated that it makes acquiring the target company difficult and/or expensive.

2. Legal protection from a lawsuit. Regulators often apply safe harbor to some corporate actions as long as those actions are taken in good faith.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

safe harbor

1. A regulation that protects individuals or corporations from the legal consequences of certain actions they undertake. For example, firms filing forecasts with the SEC have a safe harbor from individuals or businesses that use the forecasts and are subsequently damaged (that is, they lose money), as long as the forecasts were prepared in good faith.
2. A tactic in which the target of an unfriendly takeover makes itself less attractive by taking a specific action.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

safe harbor

A system of rules that, if followed exactly, will provide protection from the effects of other laws. For example, in a 1031 like-kind exchange, the use of a qualified intermediary and compliance with strict IRS deadlines will result in the ability to avoid paying taxes at the time of a sale.This is the safe harbor from normal tax liability rules.There are other ways to complete a like-kind exchange without paying taxes,but the seller embarks upon those uncharted waters at its own peril. A very slight miscalculation could result in the imposition of large taxes, penalties, and interest at a later date.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Congress determined to correct these "uncertainties" by amending the Code to "ensure there is no question that repo participants are afforded the same treatment with respect to the stay and avoidance provisions of the Code in connection with repurchase agreements" as is afforded other market participants under the 1982 amendments [which had created safe harbors for commodity trades].
As this item explains, qualifying for this re-cently established book safeharbor method is easier than qualifying for other safeharbor methods, but other complexities still face taxpayers using the safe harbor.
The personal services safe harbor requires that the aggregate compensation paid for the services be set in advance and consistent with fair market value in arm's-length transactions.
Regulations section 1.121-3(e)(2) lists specific-event safe harbors that must occur while the taxpayer owned and used the residence.
The best use of the safe harbor is to show that you comply with the DMCA standards and are entitled to summary judgment in your favor in any infringement litigation.
Prescott continued, "Our safe harbor agreement creates a way for individual companies to qualify to be in safe harbor.
The Reform Act's most significant component, referred to as the safe harbor, protects that subset of soft information known as "forward-looking statements." Forward-looking statements include--
In fact, several of the safe harbors address very specific issues or situations that affect small numbers of physicians.
In instituting a criminal background check procedure, the following safe harbors should be observed:
This article refers to this set of safe harbors as "conventional" because they have been the only ones in effect until 1992.
Taxpayers using this safe harbor are subject to the rules in Regs.
If the EAT holds the property for more than 180 days, the transaction falls outside the safe harbor, thus subjecting the transaction to general tax and legal principles of exchanges without regard to Rev.