Common use of Directly derived Clause in Contracts

Directly derived. For purposes of this paragraph (c)(5)(iii)(B), gross re- ceipts directly derived in the ordinary course of business includes gain (as well as interest income) with respect to loans originated in a lending business, or interest income (as well as gain) from debt obligations of a dealer in such obligations. However, interest earned from the investment of idle funds in short-term securities does not constitute gross receipts directly de- rived in the ordinary course of busi- ness. Similarly, a dealer’s income or gain from an item of property is not di- rectly derived in the ordinary course of its trade or business if the dealer held the property for investment at any time before the income or gain is rec- ognized.