Common use of Status of Relationship Clause in Contracts

Status of Relationship. (a) This Trust Agreement shall not create, nor shall it be interpreted to impose a partnership or joint venture relationship on the Holders either in law or in equity. Accordingly, no Holder shall have any liability for the debts or obligations incurred by any other Holder, with respect to the Trust Property or otherwise, and no Holder shall have any authority, other than as specifically provided herein, to act on behalf of any other Holder or to impose any obligation with respect to the Trust Property. (b) The Trust shall not constitute a “business trust” or “commercial trust” within the meaning of Regulations Section 301.7701-4(b) or any other business entity for federal income tax purposes, but shall instead constitute an “investment trust” within the meaning of Regulations Section 301.7701-4(c) whereby a Holder is taxed as a grantor under the grantor trust rules under Code Section 671 et seq.