Common use of Liability for State and Local and Other Taxes Clause in Contracts

Liability for State and Local and Other Taxes. In the event that the Trust shall be separately subject to taxation by any state or local or by any foreign taxing authority, the Trust shall be obligated to pay such taxes to such jurisdiction. In the event that the Trust shall be required to make payments to any federal, state or local or any foreign taxing authority in respect of any Shareholder’s allocable share of income, the amount of such taxes shall be considered a loan by the Trust to such Shareholder, and such Shareholder shall be liable for, and shall pay to the Trust, any taxes so required to be withheld and paid over by the Trust within ten (10) days after the Manager’s request therefor. Such Shareholder shall also be liable for interest on the amount of taxes paid over by the Trust to the IRS or other taxing authority, from the date of the Manager’s request for payment to the date of payment, at the rate of 2.00% over the prime rate as published by the Wall Street Journal from time to time. Any actual distribution by the Trust to such Shareholder shall be reduced by any obligations owed to the Trust by the Shareholder, including the amount of any taxes required to be paid over by the Trust to the IRS or other taxing authority and interest thereon as aforesaid. Amounts, if any, deducted by the Trust from any actual distribution to such Shareholder shall be treated as an actual distribution to such Shareholder for all purposes of this Trust Agreement.