Non-Volitional Economic Transfer Clause Samples

A Non-Volitional Economic Transfer clause defines circumstances under which assets, rights, or interests are transferred from one party to another without the initiating party's voluntary action. This typically applies in situations such as bankruptcy, death, or legal compulsion, where the transfer is triggered by external events rather than a deliberate choice. For example, shares in a company might automatically transfer to heirs upon a shareholder's death or to creditors in the event of insolvency. The core function of this clause is to provide a clear, predetermined process for handling involuntary transfers, thereby reducing uncertainty and potential disputes among parties.