Common use of Status as a REIT Clause in Contracts

Status as a REIT. Borrower (i) is a real estate investment trust as defined in Section 856 of the Code, (ii) has not engaged in any "prohibited transactions" as defined in Section 857(b)(6)(B)(iii) of the Code, (iii) for its current "tax year" (as defined in the Code) is, and shall remain, entitled to a dividends paid deduction which meets the requirements of Section 857 of the Code and (iv) its ownership and method of operation enable it to meet the requirements for taxation as a real estate investment trust under the Code.