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.)

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 ?
Healthcare and diagnostic services company Medicover AB (STO:MCOVB) reported on Wednesday a change in the number of votes in the company as a result of conversions of 16,735 class A shares into class B shares carried out in July 2019, following requests from shareholders in accordance with the conversion clause in Medicover's articles of association.
The Commission accepted the submission of the ACTU that the unrestricted use of casual employment without the safeguard of a conversion clause may operate to undermine the fairness and relevance of the safety net (FWC, 2017).
These class C shares have been issued for the purpose of ensuring fulfilment of commitments under incentive programmes and have by virtue of the conversion clause in the articles of association been converted to common shares.
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. (Not all do.)
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.
"There will be a mandatory conversion similar to CoCos, but also a voluntary conversion clause on the part of the holder," he said.
That would imply at least a ten per cent reduction in the outlay of loonies, but is there a currency conversion clause?
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.
But even when you have a conversion clause, it is usually of little help.
Medicover AB (STO:MCOVB) announced on Tuesday that the number of shares and votes in the company has changed as a result of conversions of in total 15,850 class A shares into class B shares carried out in April 2019, following requests from shareholders in accordance with the conversion clause in Medicover's articles of association.