Common use of Tax Returns and Other Tax Matters Clause in Contracts

Tax Returns and Other Tax Matters. (i) 1st Financial and Mountain 1st have timely filed or caused to be filed all federal, state, and local tax returns and reports which are required by law to have been filed, and to the Best Knowledge of 1st Financial, all such returns and reports were true, correct, and complete in all material respects and contained all material information required to be contained therein; (ii) all federal, state, and local income, profits, franchise, sales, use, occupation, property, excise, and other taxes (including interest and penalties), charges and assessments which have become due from or been assessed or levied against 1st Financial, Mountain 1st or their property have been fully paid, or if not yet due, a reserve or accrual, which is adequate in all material respects for the payment of all such taxes to be paid and the obligation for such unpaid taxes, is reflected in the 1st Financial Interim Financial Statements; (iii) the income, profits, franchise, sales, use, occupation, property, excise, withholding, employment and other tax returns and reports of 1st Financial and Mountain 1st have not been subjected to audit by the Internal Revenue Service (the “IRS”) or the North Carolina Department of Revenue and neither 1st Financial nor Mountain 1st has received any indication of the pendency of any audit or examination in connection with any tax return or report and, to the Best Knowledge of 1st Financial, no such return or report is subject to adjustment; and (iv) neither 1st Financial nor Mountain 1st executed any waiver or extended the statute of limitations (or been asked to execute a waiver or extend a statute of limitations) with respect to any tax year, the audit of any tax return or report or the assessment or collection of any tax.

Tax Returns and Other Tax Matters. (i) 1st Financial FNB and Mountain 1st First National have timely filed or caused to be filed all federal, state, and local tax returns and reports which are required by law to have been filed, and to the Best Knowledge of 1st Financialmanagement of FNB, all such returns and reports were true, correct, and complete in all material respects and contained all material information required to be contained therein; (ii) all federal, state, and local income, profits, franchise, sales, use, occupation, property, excise, and other taxes (including interest and penalties), charges and assessments which have become due from or been assessed or levied against 1st FinancialFNB, Mountain 1st First National or their property have been fully paid, or if not yet due, a reserve or accrual, which is adequate in all material respects for the payment of all such taxes to be paid and the obligation for such unpaid taxes, is reflected in the 1st Financial FNB Interim Financial Statements; (iii) the income, profits, franchise, sales, use, occupation, property, excise, withholding, employment and other tax returns and reports of 1st Financial FNB and Mountain 1st First National have not been subjected to audit by the Internal Revenue Service (the “IRS”) or the North South Carolina Department of Revenue and neither 1st Financial FNB nor Mountain 1st First National has received any indication of the pendency of any audit or examination in connection with any tax return or report and, to the Best Knowledge of 1st Financialmanagement of FNB, no such return or report is subject to adjustment; and (iv) neither 1st Financial FNB nor Mountain 1st First National executed any waiver or extended the statute of limitations (or been asked to execute a waiver or extend a statute of limitations) with respect to any tax year, the audit of any tax return or report or the assessment or collection of any tax.

Tax Returns and Other Tax Matters. (i) 1st Financial Each of FNB and Mountain 1st have its subsidiary --------------------------------- has timely filed or caused to be filed filed, or obtained proper extensions of time for filing, all federal, state, state and local income tax returns and reports which are required by law to have been filed, and to the Best Knowledge of 1st Financial, all such returns and reports were true, correct, correct and complete in all material respects and contained all material information required to be contained therein; (ii) all federal, state, state and local income, profits, franchise, sales, use, occupation, property, excise, withholding, employment and other taxes (including interest and penalties), charges and assessments which have become due from or been assessed or levied against 1st FinancialFNB, Mountain 1st its subsidiary or their property respective properties have been fully paidpaid or, or if not yet due, a reserve or accrual, accrual which is reasonably believed by the management of FNB to be adequate in all material respects for the payment of all such taxes to be paid and the obligation for such unpaid taxes, taxes is reflected in on the 1st Financial Interim FNB Financial Statements; (iii) the income, profits, franchise, sales, use, occupation, property, excise, withholding, employment and other tax returns and reports of 1st Financial FNB and Mountain 1st its subsidiary have not been subjected subject to audit by the Internal Revenue Service (the “"IRS”") or the North Carolina Department of Revenue in the last seven years and neither 1st Financial FNB nor Mountain 1st its subsidiary has received any indication of the pendency of any audit or examination in connection with any such tax return or report and, to the Best Knowledge of 1st Financial, no or has any knowledge that any such return or report is subject to adjustment; and (iv) neither 1st Financial nor Mountain 1st executed any waiver or extended the statute of limitations (or been asked to execute a waiver or extend a statute of limitations) with respect to any tax year, the audit of any tax return or report or the assessment or collection of any tax.and