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 ?
However, the proposed board order would authorize county staff "to negotiate a letter of agreement (with the company) which includes reporting elements and a recapture clause" for the funds.
* The program contains a "No Recapture Clause." Once dividends are paid, they will never be recalled.
First is the recapture clause. Within the lease there may be a clause enabling the landlord to recapture the space for his own use or for re-leasing.
The law's recapture clause allows the state to charge a 10 percent penalty if the company no longer qualifies under Act 221.
Your lease should not include a "recapture clause" if you sell some ownership of your company to someone else.
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.