Recapture date Clause Samples
The "recapture date" clause defines a specific point in time when certain rights, interests, or assets previously transferred or assigned can revert back to the original owner or grantor. In practice, this clause is often used in contexts such as intellectual property licenses, real estate leases, or financial agreements, where the party granting rights retains the ability to reclaim them after a set period or upon the occurrence of certain conditions. Its core practical function is to provide a clear mechanism for the original owner to regain control or ownership, thereby protecting their long-term interests and ensuring flexibility in managing their assets.
Recapture date. In the case of a trans- action described in paragraph (a)(1) or (b)(1) of this section, the recapture date is the day before the effective date of the S corporation election. In the case of a transaction described in paragraph (a)(2) or (b)(2) of this section, the re- capture date is the date of the transfer of the partnership interest to the S corporation.