Common use of FATCA Deduction Clause in Contracts

FATCA Deduction. (i) Each party to a Finance Document may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party to a Finance Document shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. (ii) Each party to a Finance Document shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the relevant party to a Finance Document to whom it is making the payment and, in addition, shall notify the Borrower, the Agent and the other Finance Parties.