Common use of Qualified Funding Asset Clause in Contracts

Qualified Funding Asset. MOSSCO will fund the Periodic Payments by purchasing from United a “qualified funding asset,” as defined in Section 130(d) of the Code, in the form of an annuity contract (the “Annuity”) issued by United and providing for payments corresponding to the Periodic Payments. MOSSCO shall be designated as the owner of the Annuity. All rights of legal ownership and control of the Annuity shall (subject to paragraph 9 of this Agreement) be and remain vested exclusively in MOSSCO; provided, however, that the Annuity shall be used by MOSSCO to fund the Periodic Payments and shall at all times be designated by MOSSCO on its records as being taken into account, under Section 130 of the Code, with respect to this Agreement. Notwithstanding anything to the contrary contained in this Agreement, neither any Claimant nor any Successor Payee shall have any rights with respect to the Annuity or the payments thereunder that would cause any amount attributable to the Annuity to be currently includible in the recipient’s income or would otherwise affect the determination of when any recipient is treated as having received any payment for income tax purposes, or would otherwise prevent this Agreement from satisfying all of the conditions for a “qualified assignment” within the meaning of Section 130(c) of the Code.