Recapture Event Clause Samples
A Recapture Event clause defines the circumstances under which a party, typically the original owner or grantor, can reclaim certain rights or interests previously transferred to another party. In practice, this clause might apply in contexts such as intellectual property licenses, real estate leases, or franchise agreements, where the right to use or benefit from an asset can revert to the original party if specific conditions are met—such as non-performance, breach, or the passage of a set period. The core function of this clause is to protect the original party’s interests by providing a mechanism to regain control or ownership if the other party fails to meet agreed-upon obligations or triggers specified events.
Recapture Event. For purposes of this Agreement, “Recapture Event” means each of the following:
Recapture Event. The Authority shall be entitled to recover from Business Owner all or any portion of the Development Assistance upon the occurrence of a Recapture Event. The term “Recapture Event” means one or more of the following: (a) Business Owner uses the Development Assistance for purposes other than the Approved Improvements; or (b) Business Owner fails to comply with or to satisfy any other material terms and conditions contained in this Agreement. The Authority’s right to recapture all or any portion of the Development Assistance shall be enforceable by all available means against any assets of Business Owner. Business Owner must immediately report to the Authority any indication of fraud, waste, abuse or any other potentially improper activity pertaining to the Development Assistance.
Recapture Event. BORROWER ACKNOWLEDGES THAT FAILURE TO COMPLY WITH ALL TCAP REQUIREMENTS MAY TRIGGER RECAPTURE, AND ANY DEBT DETERMINED TO BE SUBJECT TO SUCH RECAPTURE SHALL BE DUE AND PAYABLE IMMEDIATELY TO FLORIDA HOUSING AND ENFORCEABLE BY ALL AVAILABLE MEANS AGAINST ANY ASSETS OF THE BORROWER, INCLUDING FORECLOSURE OR OTHER REMEDIES UNDER THIS AGREEMENT, THE TCAP MORTGAGE AND THE LOAN DOCUMENTS.
(i) there has been an Event of Default hereunder, and as a consequence thereof, Florida Housing has determined that the Development cannot be completed by the RequiredPlaced In-Service Date or is not likely to become a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code) by the date required by Section 6.1A(iv);
(ii) the Borrower has not expended on Eligible Uses an amount equal to seventy-five percent (75%) of the Loan by the Seventy-Five Percent Funding Date (unless such date is extended in accordance with Section 4.2B herein);
(iii) the Tax Credit Award of Tax Credit Allocation is terminated or cancelled;
(iv) the Development is not completed by the RequiredPlaced In-Service Date;
(v) the Development does not become a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code) by the end of the year following the year in which the first building in the Development, which is required to contain Low-Income Units, is placed in service, or the Development otherwise fails to qualify for Tax Credits;
(vi) the Development ceases to be a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code);
(vii) TCAP Funds have been determined by Florida Housing or HUD to have been expended for Ineligible Costs and have not been repaid to the extent of such Ineligible Use;
(viii) no Tax Credit Investor makes an equity investment in the Borrower in exchange for Tax Credits;
(ix) the Borrower or the Development fails to comply with any other requirements of this Agreement, Section 42 of the Code, or Chapters 67- 48 and 67-53, Fla. Admin. Code, as applicable to Housing Tax Credits, after any applicable cure period; or
(x) a default under any of the Loan Documents, after any applicable cure period.
Recapture Event. A. A “Recapture Event” shall be deemed to occur if, at any time during the Compliance Period, any one or more of the following events shall occur and remain uncured under Section 6.4 below:
(i) there is an uncured Event of Default;
(ii) the Tax Credit AllocationTax Credit Award is terminated or cancelled;
(iii) the Development is not completed by the Required In-Service Date;
(iv) the Development does not become a “qualified low-income housing development” (as defined in Section 42(g)(1) of the Code) by the end of the year following the year in which the first building in the Development, which is required to contain Low-Income Units, is placed in service; or the Development otherwise fails to qualify for Tax Credits;
(v) the Development ceases to be a “qualified low-income housing development” (as defined in Section 42(g)(1) of the Code);
(vi) no Tax Credit Investor makes an equity investment in the Development Owner in exchange for Tax Credits; or
(vii) TCAP Funds have been determined by the Department or HUD to have been expended for costs other than Eligible Costs and have not been repaid to the Department within the timeframe specified in Section 2.
Recapture Event. Occurrence of any act, event, condition or omission which constitutes, or which after notice or lapse of time or both, would cause a loss, reduction, recapture, or disallowance of the Tax Credits (a “NMTC Recapture Event”), together with a written statement of any actions which have been proposed in order to cure or remedy such default, and any action already taken with respect thereto;