Common use of Distributions and Taxes Clause in Contracts

Distributions and Taxes. The Lenders acknowledge that any payments of distributions from the borrower to Lender are in substitution for the interest or dividend accrued or paid in respect of loaned securities and that the tax treatment of such payment may differ from the tax treatment of such interest or dividend. GSAL shall pay Custodian or cause Custodian to be paid on payable date all such payments of distributions due from the borrower to Lender. Each Lender also acknowledges that GSAL or Custodian may be required to withhold tax on amounts payable to or by Lender pursuant to a securities loan and GSAL may at any time claim from Lender any shortfall in the amount GSAL so withheld.