Rebate Covenant Clause Samples
A Rebate Covenant is a contractual provision that obligates one party to return a portion of payments or fees under certain conditions, typically if specific performance targets or sales volumes are met. In practice, this clause may require a seller to provide a rebate to a buyer if the buyer purchases a minimum quantity of goods within a set period, or if the seller fails to meet agreed service levels. The core function of a Rebate Covenant is to incentivize desired behaviors, such as increased purchasing or performance, while also providing financial assurance to the benefiting party.
Rebate Covenant. The Borrower shall calculate or cause to be calculated the rebate requirement and shall pay to the Trustee at such times as required under the Code an amount equal to the rebate requirement for deposit by the Trustee into the Rebate Fund. To the extent the amounts on deposit in the Rebate Fund as of any date of computation are not sufficient to meet the rebate requirement, the Borrower shall immediately pay the amounts necessary to the Trustee for deposit in the Rebate Fund in accordance with the provisions of Section 413 of the Indenture.
Rebate Covenant. The Company shall calculate or cause to be calculated the rebate requirement and shall pay to the Trustee at such times as required under the Code an amount equal to the rebate requirement for deposit by the Trustee into the Rebate Fund. To the extent the amounts on deposit in the Rebate Fund as of any date of computation are not sufficient to meet the rebate requirement, the Company shall immediately pay the amounts necessary to the Trustee for deposit in the Rebate Fund in accordance with the provisions of Section 413 of the Indenture.
Rebate Covenant. (a) The Borrower hereby covenants that in connection with complying with the requirement for payment of the Rebatable Arbitrage to the United States with respect to the Series 2003 A Bond, the Borrower will take the following actions:
(1) Six months after closing, the Borrower will provide a written certification to the Authority and the Agent indicating whether the Borrower complied with the 6-month exception to the arbitrage rebate requirement set forth in the Code.
(2) Unless the Borrower has complied with the 6-month exception, the Borrower will retain a Rebate Expert on or within 30 days before the Initial Rebate Computation Date and on each Rebate Computation Date thereafter, (A) to compute the Rebatable Arbitrage with respect to the Bond for the period ending on the Initial Rebate Computation Date, (B) to deliver an opinion to the Authority and the Agent concerning its conclusions with respect to the amount (if any) of such Rebatable Arbitrage together with a written report providing a summary of the calculations relating thereto and (C) to deliver an opinion to the Authority and the Agent that all of the gross Bond Proceeds of the Series 2003 A Bond (within the meaning of Section 148(f) of the Code), other than gross Bond Proceeds of the Series 2003 A Bond on deposit in a bona fide debt service fund (within the meaning of Section 148(f) of the Code), have been
Rebate Covenant. The City is a governmental unit with general 21 taxing powers to finance operations of or facilities of the nature of the Project and the System. 22 As covenanted above, the Series 2016 A Bonds are not private activity bonds within the meaning 23 of the Code, and ninety-five percent (95%) or more of the net proceeds (as defined in the Code)