Private Business Use Test Sample Clauses

Private Business Use Test. Not more than 10% of the Master Agreement Proceeds shall be used in any private business use; or

Private Business Use Test. 1. Any activity carried on by a Nongovernmental Person that is not a natural person, and any trade or business activity carried on by any person, is treated as private business use. 2. Any use of the Project pursuant to a special legal entitlement conferred on a Nongovernmental Person, such as an ownership interest, a lease, a management or incentive payment contract, certain research agreements or a take or pay or other output-type contract, is a private business use unless an exception applies. 3. If the Project is not available for use by the general public, private business use may be established solely on the basis of a special economic benefit conferred on one or more Nongovernmental Persons, even if those Nongovernmental Persons have no special legal entitlements to use of the Project. 4. Use by an agent of the Recipient, use incidental to certain financing arrangements, use pursuant to a contract encompassing fewer than 200 days, temporary use by a developer, certain incidental uses (such as telephone booths) and certain qualified improvements are not treated as private business use if the conditions set forth in Regs. §1.141-3(d) are satisfied. 5. A management, service or incentive payment contract with a Nongovernmental Person with respect to a bond-financed facility gives rise to private business use unless, generally, the following requirements are followed, each as defined and interpreted more fully in IRS Revenue Procedure 2017-13: (a) The payments to the service provider under the contract represent reasonable compensation for services rendered during the term of the contract, which may include reimbursement of actual and direct expenses paid by the service provider and related administrative overhead expenses of the service provider; (b) The contract does not provide a share of net profits or a combination of revenues and expenses from the operation of the managed property; however, permitted arrangements include any combination of reimbursements, capitation fees, periodic fixed fees and per-unit fees; (c) The contract does not, in substance, impose upon the service provider the burden of bearing any share of net losses from the operation of the managed property; however, such an arrangement is permitted if the compensation is payable at least annually; the Recipient is subject to reasonable consequences for late payment, such as reasonable interest charges or late payment fees; and the Recipient will pay such deferred compensation (with in...