Ipso Facto Stay Sample Clauses
An Ipso Facto Stay is a legal provision that prevents a contract from being terminated or modified solely because one party has entered insolvency or bankruptcy proceedings. In practice, this means that if a company files for bankruptcy, its counterparties cannot automatically end or alter their contracts just because of the bankruptcy filing itself. This clause is commonly found in insolvency laws and is designed to maintain the stability of ongoing contracts, giving the insolvent party a better chance to reorganize or maximize value for creditors. Its core function is to prevent the disruption of business relationships and protect the debtor from losing valuable contracts solely due to insolvency status.
Ipso Facto Stay. The provisions of this agreement are subject to any Ipso Facto Stay which may operate to prevent the enforcement of rights under this agreement. To the extent that there is any conflict between the provisions of this agreement and the Ipso Facto Stay, this agreement is to be interpreted subject to the Ipso Facto Stay.