Common use of Rebate Payment Clause in Contracts

Rebate Payment. 1. Upon the calculation of the Locality Rebate Requirement and Yield Reduction Payment for each Locality, VPSA shall notify the Investment Manager thereof. The Investment Manager shall promptly charge the Principal Subaccount of a Locality to the extent the amount on deposit to the credit of its Income Subaccount is less than the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment and credit its Income Subaccount with an amount such that the balance to the credit of the Income Subaccount is equal to the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment (taking into account prior amounts credited to the Income Subaccount including investment income thereon). To the extent that the amount on deposit in the Principal Subaccount is insufficient to provide for a deposit to the Income Subaccount such that the balance in the Income Subaccount is equal to the sum of the Locality Rebate Requirement and Locality Yield Reduction Payment for the Locality, the Investment Manager shall advise VPSA and such Locality of the amount of the deficiency so that the Locality may promptly transfer to the Depository the amount required pursuant to Section 12 of the Proceeds Agreement. 2. In addition to the computation of the Localities' Locality Rebate Requirement, VPSA shall calculate its Rebate Requirement with respect to Nonpurpose Investments that were acquired with the Gross Proceeds of the VPSA Bonds in accordance with the procedures set forth in the Related VPSA Tax Agreement executed by VPSA in connection with the issuance of the VPSA Bonds. 3. The Locality Rebate Requirement for each Locality, if a positive number, shall be paid at the direction of VPSA to the United States in installments. Each payment must be in an amount not less than the total of ninety percent (90%) of the Locality Rebate Requirement for each Locality as of each Installment Computation Date. All of the Locality Rebate Requirement must be paid to the United States within sixty (60) days after the Final Computation Date. All of the Locality Yield Reduction Payment as of each Computation Date must be paid to the United States within sixty (60) days of each Computation Date. Each payment shall be made not later than sixty (60) days after each Computation Date. Payment shall be made to the Internal Revenue Service Center, Ogden, Utah 84201 and be accompanied by Form 8038-T. VPSA shall make such payment as required. Investment Reports and records of the determinations made hereunder shall be retained by the Investment Manager and by VPSA, respectively, until six (6) years after the retirement of the VPSA Bonds.

Rebate Payment. 1. Upon the calculation of the Locality Rebate Requirement and Yield Reduction Payment for each Locality, VPSA shall notify the Investment Manager thereof. The Investment Manager shall promptly charge the Principal Subaccount of a Locality to the extent the amount on deposit to the credit of its Income Subaccount is less than the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment and credit its Income Subaccount with an amount such that the balance to the credit of the Income Subaccount is equal to the sum of its Locality Rebate Requirement and Locality Yield Reduction Payment (taking into account prior amounts credited to the Income Subaccount including investment income thereon). To the extent that the amount on deposit in the Principal Subaccount is insufficient to provide for a deposit to the Income Subaccount such that the balance in the Income Subaccount is equal to the sum of the Locality Rebate Requirement and Locality Yield Reduction Payment for the Locality, the Investment Manager shall advise VPSA and such Locality of the amount of the deficiency so that the Locality may promptly transfer to the Depository the amount required pursuant to Section 12 of the Proceeds Agreement. 2. In addition to the computation of the Localities' Locality Rebate Requirement, VPSA shall calculate its Rebate Requirement with respect to Nonpurpose Investments that were acquired with the Gross Proceeds of the VPSA Bonds in accordance with the procedures set forth in the Related VPSA Tax Agreement executed by VPSA in connection with the issuance of the VPSA Bonds. 3. The Locality Rebate Requirement for each Locality, if a positive number, shall be paid at the direction of VPSA to the United States in installments. Each payment must be in an amount not less than the total of ninety percent (90%) of the Locality Rebate Requirement for each Locality as of each Installment Computation Date. All of the Locality Rebate Requirement must be paid to the United States within sixty (60) days after the Final Computation Date. All of the Locality Yield Reduction Payment as of each Computation Date must be paid to the United States within sixty (60) days of each Computation Date. Each payment shall be made not later than sixty (60) days after each Computation Date. Payment shall be made to the Internal Revenue Service Center, OgdenXxxxx, Utah 84201 Xxxx 00000 and be accompanied by Form 8038-T. VPSA shall make such payment as required. Investment Reports and records of the determinations made hereunder shall be retained by the Investment Manager and by VPSA, respectively, until six (6) years after the retirement of the VPSA Bonds.