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If the power is suddenly cut during recording, the next time you power on the unit it'll ask you if you want to repair the clip you were recording when the power got shut off. I tested this by using the wall AC adapter and unplugging it during recording.
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I haven't tried it with the battery dying; I would assume that in the worst case scenario it'd act like the sudden power cut, but since it has the electronics in the battery to communicate exact battery state, I wouldn't be all that surprised to find out the system might actually be able to predict imminent power-off and automatically save your current recording state without needing to repair the clip on next power-on. When I have a dead-ish battery I'll try to remember to test this.
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I can't say for sure, but the camera still has some power in the battery to clean up things before it does an auto-shutdown. Most equipment I've seen, will do an auto-shutdown when a battery is low, rather than waiting for the battery to go lower and have a system crash or freeze-up. I'll bet that it finishes the write operation, closes the file, and shuts down the camera.
Might be interesting to take a low battery, a blank card, and record until the battery dies, to see what happens.
Bob Diaz