Common use of Federal Income Taxes Clause in Contracts

Federal Income Taxes. (a) If Certificates are treated as held by more than one person or the Trust is recharacterized as an entity separate from its owner, each Certificateholder acknowledges and agrees that the Trust will be treated as a partnership solely for income tax purposes and that this Agreement does not create a partnership for any other purpose. No election to treat the Trust other than as a disregarded entity if the Certificates are treated as held by a single person or as a partnership if the Certificates are treated as held by more than one person for Federal income tax purposes or any relevant state tax purposes shall be made by or on behalf of the Trust, or by any Certificateholder. (b) Net income of the Trust for any month as determined for Federal income tax purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated: (i) to the extent of available net income and in accordance with Federal income tax accounting and allocation principles, among the Certificateholders as of the first Record Date following the end of such month, in proportion to their ownership of principal amount of Trust Certificates on such date, in the priorities set forth in Section 5.2 herein. (c) If the net income of the Trust for any month is insufficient for the allocation described in clause (b) above, subsequent net income shall first be allocated to make up such shortfall before being allocated as provided in clause (b). (d) Net losses of the Trust, if any, for any month as determined for Federal income tax accounting and allocation purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first Record Date following the end of such month in proportion to their ownership of principal amount of Trust Certificates on such Record Date until the principal balance of the Trust Certificates is reduced to zero. Notwithstanding anything provided in this Section 2.11, if the Certificates ------------ are treated as held solely by one person or the Trust has not been recharacterized as an entity separate from its owner, the application of clause (b), clause (c) and clause (d) of this section shall be disregarded.

Federal Income Taxes. (a) If Certificates are treated as held by more than one person or the Trust is recharacterized as an entity separate from its owner, each Certificateholder acknowledges and agrees that the Trust will be treated as a partnership solely for income tax purposes and that this Agreement does not create a partnership for any other purpose. No election to treat the Trust other than as a disregarded entity if the Certificates are treated as held by a single person or as a partnership if the Certificates are treated as held by more than one person for Federal income tax purposes or any relevant state tax purposes shall be made by or on behalf of the Trust, or by any Certificateholder. (b) Net income of the Trust for any month as determined for Federal income tax purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated: (i) allocated to the extent of available net income and in accordance with Federal income tax accounting and allocation principles, among the Certificateholders as of the first Record Date following the end of such month, in proportion to their ownership of principal amount of Trust Certificates on such date, in the priorities set forth in Section 5.2 herein. (c) If the net income of the Trust for any month is insufficient for the allocation described in clause (b) above, subsequent net income shall first be allocated to make up such shortfall before being allocated as provided in clause (b). (d) Net losses of the Trust, if any, for any month as determined for Federal income tax accounting and allocation purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first Record Date following the end of such month in proportion to their ownership of principal amount of Trust Certificates on such Record Date until the principal balance of the Trust Certificates is reduced to zero. . (e) Notwithstanding anything provided in this Section 2.11, if the Certificates ------------ are treated as held solely by one person or the Trust has not been recharacterized as an entity separate from its owner, the application of clause (b), clause (c) and clause (d) of this section Section shall be disregarded.

Federal Income Taxes. (a) If Certificates are treated as held by more than one person or the Trust is recharacterized as an entity separate from its owner, each Certificateholder acknowledges and agrees that the Trust will be treated as a partnership solely for income tax purposes and that this Agreement does not create a partnership for any other purpose. No election to treat the Trust other than as a disregarded entity if the Certificates are treated as held by a single person or as a partnership if the Certificates are treated as held by more than one person for Federal income tax purposes or any relevant state tax purposes shall be made by or on behalf of the Trust, or by any Certificateholder. (b) Net income of the Trust for any month as determined for Federal income tax purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated: (i) : to the extent of available net income and in accordance with Federal income tax accounting and allocation principles, among the Certificateholders as of the first Record Date following the end of such month, in proportion to their ownership of principal amount of Trust Certificates on such date, an amount of net income up to the sum of (x) the Certificateholders' Monthly Interest Distributable Amount for such month, (y) interest on the excess, if any, of the Certificateholders' Interest Distributable Amount for the preceding Payment Date over the amount in respect of interest at the Certificate Rate that is actually deposited in the priorities set forth in Section 5.2 hereinCertificate Distribution Account on such preceding Payment Date, to the extent permitted by law, at the Certificate Rate from such preceding Payment Date through the current Payment Date, and (z) the portion of the market discount on the Receivables accrued during such month that is allocable to the excess of the initial aggregate principal amount of the Trust Certificates over their initial aggregate issue price. (c) If the net income of the Trust for any month is insufficient for the allocation described in clause (b) above, subsequent net income shall first be allocated to make up such shortfall before being allocated as provided in clause (b). (d) Net losses of the Trust, if any, for any month as determined for Federal income tax accounting and allocation purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first Record Date following the end of such month in proportion to their ownership of principal amount of Trust Certificates on such Record Date until the principal balance of the Trust Certificates is reduced to zero. Notwithstanding anything provided in this Section 2.11, if the Certificates ------------ are treated as held solely by one person or the Trust has not been recharacterized as an entity separate from its owner, the application of clause (b), clause (c) and clause (d) of this section shall be disregarded.

Federal Income Taxes. (a) If Trust Certificates are treated as held by more than one person or the Trust is recharacterized as an entity separate from its owner, each Trust Certificateholder acknowledges and agrees that the Trust will be treated as a partnership solely for income tax purposes and that this Agreement does not create a partnership for any other purpose. No election to treat the Trust other than as a disregarded entity if the Trust Certificates are treated as held by a single person or as a partnership if the Trust Certificates are treated as held by more than one person for Federal income tax purposes or any relevant state tax purposes shall be made by or on behalf of the Trust, or by any Certificateholder. (b) Net income of the Trust for any month as determined for Federal income tax purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated: (i) allocated to the extent of available net income and in accordance with Federal income tax accounting and allocation principles, among the Certificateholders as of the first Record Date following the end of such month, in proportion to their ownership of principal amount of Trust Certificates on such date, in the priorities set forth in Section 5.2 herein. (c) If the net income of the Trust for any month is insufficient for the allocation described in clause (b) above, subsequent net income shall first be allocated to make up such shortfall before being allocated as provided in clause (b). (d) Net losses of the Trust, if any, for any month as determined for Federal income tax accounting and allocation purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first Record Date following the end of such month in proportion to their ownership of principal amount of Trust Certificates on such Record Date until the principal balance of the Trust Certificates is reduced to zero. Notwithstanding anything provided in this Section 2.11, if the Trust Certificates ------------ are treated as held solely by one person or the Trust has not been recharacterized as an entity separate from its owner, the application of clause (b), clause (c) and clause (d) of this section Section shall be disregarded.

Federal Income Taxes. (a) If Certificates are treated as held by more than one person or the Trust is recharacterized as an entity separate from its owner, each Certificateholder acknowledges and agrees that the Trust will be treated as a partnership solely for income tax purposes and that this Agreement does not create a partnership for any other purpose. No election to treat the Trust other than as a disregarded entity if the Certificates are treated as held by a single person or as a partnership if the Certificates are treated as held by more than one person for Federal income tax purposes or any relevant state tax purposes shall be made by or on behalf of the Trust, or by any Certificateholder. (b) Net income of the Trust for any month as determined for Federal income tax purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated: (i) to the extent of available net income and in accordance with Federal income tax accounting and allocation principles, among the Certificateholders as of the first Record Date following the end of such month, in proportion to their ownership of principal amount of Trust Certificates on such date, an amount of net income up to the sum of (x) the Certificateholders' Monthly Interest Distributable Amount for such month, (y) interest on the excess, if any, of the Certificateholders' Interest Distributable Amount for the preceding Payment Date over the amount in respect of interest at the Certificate Rate that is actually deposited in the priorities set forth in Section 5.2 herein.Certificate Distribution Account on such preceding Payment Date, to the extent permitted by law, at the Certificate Rate from such preceding Payment Date through the current Payment Date, and (iii) the portion of the market discount on the Receivables accrued during such month that is allocable to the excess of the initial aggregate principal amount of the Trust Certificates over their initial aggregate issue price; and (c) If the net income of the Trust for any month is insufficient for the allocation described in clause (b) above, subsequent net income shall first be allocated to make up such shortfall before being allocated as provided in clause (b). (d) Net losses of the Trust, if any, for any month as determined for Federal income tax accounting and allocation purposes (and each item of income, gain, loss, credit and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first Record Date following the end of such month in proportion to their ownership of principal amount of Trust Certificates on such Record Date until the principal balance of the Trust Certificates is reduced to zero. Notwithstanding anything provided in this Section 2.11, if the Certificates ------------ are treated as held solely by one person or the Trust has not been recharacterized as an entity separate from its owner, the application of clause (b), clause (c) and clause (d) of this section shall be disregarded.