---
title: "List contract clauses conditioned on insolvency or a bankruptcy case"
url: "https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/list-contract-rights-stayed-while-a-company-is-under-administration/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A8-KE20261022-2-US"
practice_area: "Insolvency, Restructuring & Bankruptcy"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# List contract clauses conditioned on insolvency or a bankruptcy case

> From each contract made before the case began, quote any clause that confers a right because of insolvency, financial condition, commencement of a case, or appointment of a trustee or a custodian, with the clause…

Canonical page: https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/list-contract-rights-stayed-while-a-company-is-under-administration/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From each contract made before the case began, quote any clause that confers a right because of insolvency, financial condition, commencement of a case, or appointment of a trustee or a custodian, with the clause number. List contracts made after commencement in a separate list. Do not say the right is unenforceable. |
| What the lawyer must review | You decide which subsection applies, and you do not treat a listed clause as already stayed. 11 U.S.C. § 365(e)(1) says that, notwithstanding a provision in an executory contract or unexpired lease or in applicable law, an executory contract or unexpired lease of the debtor may not be terminated or modified, and any right or obligation under it may not be terminated or modified, at any time after commencement of the case solely because of a provision conditioned on the insolvency or financial condition of the debtor at any time before closing of the case, the commencement of a case under title 11, or the appointment of or taking possession by a trustee in a case under title 11 or a custodian before such commencement. Section 365(e)(2) says paragraph (1) does not apply if applicable law excuses a party other than the debtor from accepting performance from or rendering performance to the trustee or an assignee, whether or not the contract prohibits assignment, and that party does not consent to assumption or assignment, or if the contract is a contract to make a loan, or to extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor. A separate rule is 11 U.S.C. § 541(c)(1). Except as paragraph (2) provides, an interest of the debtor in property becomes property of the estate under section 541(a)(1), (a)(2), or (a)(5) notwithstanding a provision in an agreement, transfer instrument, or applicable nonbankruptcy law that restricts or conditions transfer by the debtor, or that is conditioned on insolvency, financial condition, commencement of a case, or appointment of or taking possession by a trustee or a custodian before commencement, and that effects or gives an option to effect a forfeiture, modification, or termination of the debtor's interest in property. Section 541(c)(2) says a restriction on the transfer of a beneficial interest of the debtor in a trust that is enforceable under applicable nonbankruptcy law is enforceable in a case under title 11. Section 365(e) is not section 541(c). The automatic stay was not used for this list. |
| Written for | United States |
| Applies to | [List contract rights stayed while a company is under administration](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/list-contract-rights-stayed-while-a-company-is-under-administration.md) |

## Checking plan

- What the AI does: From each contract made before the case began, quote any clause that confers a right because of insolvency, financial condition, commencement of a case, or appointment of a trustee or a custodian, with the clause number. List contracts made after commencement in a separate list. Do not say the right is unenforceable.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Section 365(e) is about an executory contract or unexpired lease. Section 541(c) is about an interest of the debtor becoming property of the estate.
- Section 365(e)(2) is for the lawyer. The list does not decide that the exception applies.
- Do not describe the automatic stay from this list. That section was not used.

## Sources

- [11 U.S.C. § 365](https://www.law.cornell.edu/uscode/text/11/365) (checked 2026-10-22)
- [11 U.S.C. § 541](https://www.law.cornell.edu/uscode/text/11/541) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*