Common use of Tax Exempt Treatment Clause in Contracts

Tax Exempt Treatment. If the financing of Property pursuant to a Property Schedule hereunder is deemed tax-exempt, with respect to an applicable Property Schedule, the parties contemplate that interest payable pursuant to the corresponding Payment Schedule will be excluded from gross income for federal income tax purposes under Section 103(a) of the Code. The tax-exempt status of financing under an applicable Property Schedule provides the inducement for Lessor to offer financing at the interest rate set forth in the corresponding Payment Schedule. Should financing under an applicable Property Schedule be deemed by any taxing authority not to be exempt from taxation, and upon a final determination that the interest payments are not excludable from gross income under Section 103(a) of the Code, the interest rate will be adjusted, as of the date of loss of tax exemption, to an interest rate calculated to provide Lessor or its assignee an after-tax yield equivalent to the tax-exempt rate and Lessor will notify Lessee of the taxable rate. The foregoing obligation will not apply if such final determination is based upon the individual actions or tax circumstances of Lessor, or a finding that the party seeking to exclude such payments from gross income is not the owner and holder of the obligation under the Code. Lessor acknowledges that Lessee must complete and file with the IRS Form 8038-G (issue price $100,000 or more) or 8038-GC (issue price less than $100,000) when equipment is leased or purchased utilizing a special tax-exempt interest rate. Lessor will provide Lessee with all financial and other information necessary for completion of Form 8038-G/GC Lessee might require within ten (10) days of Lessee’s request.

Tax Exempt Treatment. If the financing of Property pursuant to a Property Schedule hereunder is deemed tax-exempt, with respect to an applicable Property Schedule, the parties contemplate that interest payable pursuant to the corresponding Payment Schedule will be excluded from gross income for federal income tax purposes under Section 103(a) of the Code. The tax-exempt status of financing under an applicable Property Schedule provides the inducement for Lessor to offer financing at the interest rate set forth in the corresponding Payment Schedule. Should financing under an applicable Property Schedule be deemed by any taxing authority not to be exempt from taxation, and upon a final determination that the interest payments are not excludable from gross income under Section 103(a) of the Code, the interest rate will be adjusted, as of the date of loss of tax exemption, to an interest rate calculated to provide Lessor or its assignee an after-tax yield equivalent to the tax-exempt rate and Lessor will notify Lessee of the taxable rate. The foregoing obligation will not apply if such final determination is based upon the individual actions or tax circumstances of Lessor, or a finding that the party seeking to exclude such payments from gross income is not the owner and holder of the obligation under the Code. Lessor acknowledges that Lessee must complete and file with the IRS Form 8038-G (issue price $100,000 or more) or 8038-GC (issue price less than $100,000) when equipment is leased or purchased utilizing a special tax-exempt interest rate. Lessor will provide Lessee with all financial and other information necessary for completion of Form 8038-G/GC Lessee might require within ten (10) days of Lessee’s request.than