Violating Transactions Clause Samples
The Violating Transactions clause defines actions or transactions that are prohibited under the agreement, typically because they breach legal, regulatory, or contractual requirements. In practice, this clause outlines specific types of transactions—such as those involving sanctioned parties, illegal activities, or unauthorized transfers—that are not permitted and may trigger remedies or penalties if they occur. Its core function is to protect the parties from legal exposure and ensure compliance by clearly identifying and restricting unacceptable transactions.
Violating Transactions. Any transaction or purported transaction will be null and void unless made strictly in accordance with the provisions of this Article 7. If for any reason a Transfer of membership interests takes place in breach of this Article 7, in addition to other remedies, the recipient of the membership interests will have only the rights of an assignee pursuant to the Act.