No Capital Lease; Forward Contract. The Parties acknowledge and agree that for accounting or tax purposes, this Agreement is not and shall not be construed as a capital lease and, pursuant to Section 7701(e)(3) of the Internal Revenue Code, this Agreement is and shall be treated by each Party as a service contract for the sale to District of electric energy produced at alternative energy Solar Facility. Each of the Parties agrees that it will not dispute that (i) the transaction contemplated by this Agreement constitutes a “forward contract” within the meaning of the United States Bankruptcy Code and (ii) each Party is a “forward contract merchant” within the meaning of the United States Bankruptcy Code.
Appears in 3 contracts
Samples: Solar Power Purchase Agreement, Solar Power Purchase Agreement, Solar Power Purchase Agreement
No Capital Lease; Forward Contract. The Parties acknowledge and agree that for accounting or tax purposes, this Agreement is not and shall not be construed as a capital lease and, pursuant to Section 7701(e)(3) of the Internal Revenue Code, this Agreement is and shall be treated by each Party as a service contract for the sale to District of electric energy produced at an alternative energy Solar FacilitySystem. Each of the Parties agrees that it will not dispute that (i) the transaction contemplated by this Agreement constitutes a “forward contract” within the meaning of the United States Bankruptcy Code and (ii) each Party is a “forward contract merchant” within the meaning of the United States Bankruptcy Code.
Appears in 1 contract
Samples: Power Purchase Agreement
