executory interest


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executory interest

n. an interest in property (particularly real estate) which will only pass to another in the future, or never, if certain events occur.

References in periodicals archive ?
SCM Computer System--Lease Amortization Schedule Date Annual Lease Executory Interest on Reduction Lease Payment Costs Obligation of Lease Obligation (6%) Obligation 1/1/08 99,169 1/1/08 36,000 1,000 0 35,000 64,169 1/1/09 36,000 1,000 3,850 31,150 33,019 1/1/10 36,000 1,000 1,981 33,019 0 Total 108,000 3,000 5,831 99,169 Jan.
162) One of the principal purposes of a bankruptcy proceeding is to maximize the cash available for distribution to general unsecured creditors of the debtor; if the debtor owns real estate and the real estate is encumbered by restrictive covenants or executory interests such as reversions, the amount of cash a trustee realizes from a sale of real estate may be reduced.
2032A-8(c)(2) defines such parties to include owners of remainder and executory interests, joint tenants and holders of other undivided interests in the property, and trustees of trusts holding interests in such properties.