Common use of Tax Accounting Clause in Contracts

Tax Accounting. (a) The Collateral Agent shall prepare any federal tax returns (including any necessary information returns) of the Trust in accordance with the treatment of the trust as a grantor trust under subpart E of part I of subchapter J of chapter 1 of the Code and any regulations (including, to the extent applicable by their terms, proposed regulations) thereunder. To the extent not inconsistent with any such regulations, such returns shall be prepared in a manner consistent with the following rules: (i) The Class A Certificateholders shall be treated as owning the Class A Percentage of Interest Collections (but limited to interest on the Class A Certificate balance at the sum of the Class A Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections and the Class B Certificateholders shall be treated as owning the Class B Percentage of Interest Collections (but limited to interest on the Class B Certificate balance at the sum of the Class B Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections. The Depositor shall be treated as having retained the stripped coupons on the Class A Percentage and the Class B Percentage of each Receivable equal to the difference between the APR of such Receivable and the portion owned by the Class A and Class B Certificateholders, respectively, pursuant to this paragraph. (ii) To the extent that as a result of the subordination provisions of this Agreement, actual cash distributions to the Class B Certificateholders are less than the amount set forth in subsection (i), the Class B Certificateholders shall be deemed to have (a) received the amount set forth in subsection (i), (b) paid such difference to the Class A Certificateholders pursuant to a guaranty of the Class A Certificates, and (c) become subrogated to the rights of the Class A Certificateholders to recovery of the amounts so paid. (b) The Collateral Agent shall prepare any state tax returns required to be filed by the Trust, and the Trustee shall execute and file such returns if requested to do so by the Collateral Agent. The Trustee and the Paying Agent, upon written request, will promptly furnish the Collateral Agent with all such information known to the Trustee or the Paying Agent, as the case may be, as may be reasonably required in connection with the preparation of any state tax returns of the Trust.

Tax Accounting. (a) The Collateral Agent Servicer shall prepare any federal Federal tax returns (including any necessary information returns) of the Trust in accordance with the treatment of the trust as a grantor trust under subpart E of part I of subchapter J of chapter 1 of the Code and any regulations (including, to the extent applicable by their terms, proposed regulations) thereunder. To the extent not inconsistent with any such regulations, such returns shall be prepared in a manner consistent with the following rules: (ia) The Class A Certificateholders shall be treated as owning the Class A Percentage of Interest Collections (but limited to interest on the Class A Certificate balance at the sum of the Class A Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections and the Class B Certificateholders shall be treated as owning the Class B Percentage of Interest Collections (but limited to interest on the Class B Certificate balance at the sum of the Class B Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections. The Depositor Seller shall be treated as having retained the stripped coupons on the Class A Percentage and the Class B Percentage of each Receivable equal to the difference between the APR of such Receivable and the portion owned by the Class A and Class B Certificateholders, respectively, pursuant to this paragraph. (iib) To the extent that as a result of the subordination provisions of this Agreement, actual cash distributions to the Class B Certificateholders are less than the amount set forth in subsection (ia), the Class B Certificateholders shall be deemed to have (ai) received the amount set forth in subsection (ia), (bii) paid such difference to the Class A Certificateholders pursuant to a guaranty of the Class A Certificates, and (ciii) become subrogated to the rights of the Class A Certificateholders to recovery of the amounts so paid. (b) The Collateral Agent shall prepare any state tax returns required to be filed by the Trust, and the Trustee shall execute and file such returns if requested to do so by the Collateral Agent. The Trustee and the Paying Agent, upon written request, will promptly furnish the Collateral Agent with all such information known to the Trustee or the Paying Agent, as the case may be, as may be reasonably required in connection with the preparation of any state tax returns of the Trust.

Tax Accounting. (a) The Collateral Agent Servicer shall prepare any federal tax returns (including any necessary information returns) of the Trust in accordance with the treatment of the trust as a grantor trust under subpart E of part I of subchapter J of chapter 1 of the Code and any regulations (including, to the extent applicable by their terms, proposed regulations) thereunder. To the extent not inconsistent with any such regulations, such returns shall be prepared in a manner consistent with the following rules: (ia) The Class A Certificateholders shall be treated as owning the Class A Percentage of Interest Collections (but limited to interest on the Class A Certificate balance at the sum of the Class A Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections and the Class B Certificateholders shall be treated as owning the Class B Percentage of Interest Collections (but limited to interest on the Class B Certificate balance at the sum of the Class B Pass-Through Rate plus the Servicing Fee Rate, such amount of interest expressed as a percentage of the Interest Collections) and Principal Collections. The Depositor shall be treated as having retained the stripped coupons on the Class A Percentage and the Class B Percentage of each Receivable equal to the difference between the APR of such Receivable and the portion owned by the Class A and Class B Certificateholders, respectively, pursuant to this paragraph. (iib) To the extent that as a result of the subordination provisions of this Agreement, actual cash distributions to the Class B Certificateholders are less than the amount set forth in subsection (ia), the Class B Certificateholders shall be deemed to have (ai) received the amount set forth in subsection (ia), (bii) paid such difference to the Class A Certificateholders pursuant to a guaranty of the Class A Certificates, and (ciii) become subrogated to the rights of the Class A Certificateholders to recovery of the amounts so paid. (b) The Collateral Agent shall prepare any state tax returns required to be filed by the Trust, and the Trustee shall execute and file such returns if requested to do so by the Collateral Agent. The Trustee and the Paying Agent, upon written request, will promptly furnish the Collateral Agent with all such information known to the Trustee or the Paying Agent, as the case may be, as may be reasonably required in connection with the preparation of any state tax returns of the Trust.