Present and Reasonably Equivalent Value Clause Samples
The Present and Reasonably Equivalent Value clause defines the requirement that any transfer of assets or property must be made in exchange for value that is both current and comparable to the fair market value of what is being transferred. In practice, this means that if a company sells equipment or property, it must receive payment or consideration that reflects the true worth of the asset at the time of the transaction, rather than an outdated or artificially low amount. This clause is crucial in preventing fraudulent transfers, particularly in insolvency or bankruptcy contexts, by ensuring that parties cannot dispose of assets for less than their actual value to the detriment of creditors.
Present and Reasonably Equivalent Value. The transactions contemplated by this Agreement are intended by the parties to be a contemporaneous exchange between the Seller and the Purchaser and will be accomplished at Closing Date contemporaneously. To the extent that Purchaser has assumed any obligations of the Seller and the Stockholders under this Agreement, the assumption of the obligations at Closing Date shall be regarded as a contemporaneous exchange for the transfer of assets as described in this Agreement. The transactions contemplated by this Agreement represent a regularly conducted, noncollusive sale, and have been negotiated by the parties and their respective professional advisors in an arm's-length manner with due regard for the respective obligations of the parties and value of the assets transferred.
Present and Reasonably Equivalent Value. The transactions contemplated by this Agreement are intended by the parties to be a contemporaneous exchange between Seller and Buyer. The transactions contemplated by this Agreement represent a regularly conducted, non-collusive sale and have been negotiated by the parties and their respective professional advisors in an arm's-length manner with due regard for the respective obligations of the parties and value of the Assets.