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.
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Related to Violating Transactions

  • Hedging Transactions The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Hedging Transaction, other than Hedging Transactions entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any of its Subsidiaries is exposed in the conduct of its business or the management of its liabilities. Solely for the avoidance of doubt, the Borrower acknowledges that a Hedging Transaction entered into for speculative purposes or of a speculative nature (which shall be deemed to include any Hedging Transaction under which the Borrower or any of its Subsidiaries is or may become obliged to make any payment (i) in connection with the purchase by any third party of any Capital Stock or any Indebtedness or (ii) as a result of changes in the market value of any Capital Stock or any Indebtedness) is not a Hedging Transaction entered into in the ordinary course of business to hedge or mitigate risks.