Qualified proceeds Sample Clauses

The "Qualified Proceeds" clause defines what types of funds or assets are recognized as valid proceeds under an agreement, typically in the context of a sale, financing, or insurance event. It specifies the criteria that proceeds must meet to be considered "qualified," such as originating from approved sources, meeting certain timing requirements, or being free from encumbrances. This clause ensures that only proceeds meeting agreed-upon standards are counted for contractual purposes, thereby protecting parties from disputes over what constitutes acceptable payment or compensation.

Qualified proceeds. Qualified pro- ceeds means the proceeds payable as a result of damage to, or destruction or involuntary conversion (within the meaning of section 1033) of, the resi- dence held by a personal residence trust, provided that the governing in- strument requires that the proceeds (including any income thereon) be rein- vested in a personal residence within two years from the date on which the proceeds are received.