Common use of Ability to liquidate Clause in Contracts

Ability to liquidate. Whether an in- terest can be liquidated immediately after the lapse is determined under the State law generally applicable to the entity, as modified by the governing instruments of the entity, but without regard to any restriction described in section 2704(b). Thus, if, after any re- striction described in section 2704(b) is disregarded, the remaining require- ments for liquidation under the gov- erning instruments are less restrictive than the State law that would apply in the absence of the governing instru- ments, the ability to liquidate is deter- mined by reference to the governing in- struments.