Common use of Exemption from Ad Valorem Tax Clause in Contracts

Exemption from Ad Valorem Tax. The Company and Issuer hereby acknowledge, understand and agree that, while the Project is owned by the Issuer, the Project will be exempt from all ad valorem taxes. Notwithstanding such exemption, the Company hereby agrees, commencing on the December 31 that is at least eleven full years after establishment of the Completion Date and on each December 31 thereafter, so long as the Issuer owns the Project, to make a payment in lieu of tax, in an amount equal to, but not exceeding, the amount that would be due and payable as ad valorem tax on the Project if the Company owned the Project. Such payment in lieu of tax shall be paid to the person or entity collecting tax in the Parish of St. Xxxxx and shall be distributed to taxing bodies in the same manner as ad valorem tax collections are distributed.