Unit Reclassification Clause Samples
The Unit Reclassification clause defines the process and conditions under which a unit within a property or development may be reclassified to a different type or use. Typically, this clause outlines the criteria for reclassification, such as changes in occupancy, use, or physical modifications, and may require approval from relevant parties like the property owner, association, or regulatory authorities. Its core practical function is to provide a clear mechanism for adapting unit classifications to evolving needs or circumstances, thereby ensuring flexibility and proper management within the property or development.
Unit Reclassification. In the event that there is any consolidation, amalgamation, arrangement, merger or other form of combination of BPY with or into any other entity resulting in a reclassification of the Outstanding BPY Units (“Unit Reclassification”), then the Exchange Ratio will be adjusted in a manner approved by the General Partner, acting reasonably, to ensure that:
8.2.1. the Redemption-Exchange Unitholders would receive the amount of cash equal to the Market Value (or, if no Market Value is available, the fair market value) of the securities that such Redemption-Exchange Unitholder would have been entitled to receive pursuant to the Unit Reclassification if, on the effective date of such Unit Reclassification, the holders had been the registered holders of the number of BPY Units that they would have received had such Redemption-Exchange Units been exchanged for the Applicable Number of BPY Units pursuant to the Exchange Right immediately before the effective date of the Unit Reclassification; and
8.2.2. the Redemption-Exchange Unitholders would receive the securities that such Redemption-Exchange Unitholders would have been entitled to receive pursuant to the Unit Reclassification if, on the effective date of the Unit Reclassification, the holders had been the registered holders of the number of BPY Units that they would have received had such Redemption-Exchange Units been exchanged for the Applicable Number of BPY Units pursuant to the Exchange Right immediately before the effective date of the Unit Reclassification.
Unit Reclassification. Effective as of 5:00 p.m., Central Standard Time, on July 10, 2008 (the “Reclassification Effective Time”) each Unit outstanding immediately prior to the Reclassification Effective Time owned by a Member who is the record holder (as such term is used in the Securities Exchange Act of 1934, as amended) of 20 or fewer Units shall, by virtue of this Section 4.7 and without any action on the part of the holder thereof, hereafter be reclassified as a Class A-1 Unit, on the basis of one (1) Class A-1 Unit for each Unit held by such Member. Each Unit outstanding immediately prior to the Reclassification Effective Time owned by a Member who is the record holder of more than 20 Units shall not be reclassified and shall continue in existence, but such Units shall hereafter be referred to as a Class A Unit.
Unit Reclassification. Effective as of Twelve P.M. (Noon) CST, on March 29, 2010 (the “Reclassification Effective Time”) each Class A Unit outstanding immediately prior to the Reclassification Effective Time owned by a Member who is the record holder (as that term is used in the Securities Exchange Act of 1934, as amended) of three (3) or fewer Class A Units shall, by virtue of this Section 3.4 and without any action of the part of the holder thereof, hereafter be reclassified as a Class A-1 Unit, on the basis of one (1) Class A-1 Unit for each Class A Unit held by such Member. Each Class A Unit outstanding immediately prior to the Reclassification Effective Time owned by a Member who is the record holder of more than three (3) Class A Units shall not be reclassified and shall continue in existence.