Common use of Taxable Appendix Clause in Contracts

Taxable Appendix. The City and Lessor understand that in certain circumstances the intended use of Equipment under an Appendix by the City may be such that the interest component of Lease Payments under said Appendix does not qualify for exemption from federal income tax. In such an event the Equipment Lease Rate for said Appendix shall be multiplied by 1.56 in computing the Lease Payments for said Appendix and Sections 5.8.1 and 5.8.2 of the Lease shall not be applicable with respect to said Appendix. In addition, Schedule 4 to said Appendix shall have the following language inserted at the end of the second paragraph of said Schedule: “This Appendix is a taxable Appendix. The Equipment Lease Rate shall be further adjusted by multiplying said Equipment Lease Rate by 1.56. Sections 5.8.1 and 5.8.2 of the Lease shall not be applicable with respect to this Appendix.”

Taxable Appendix. The City and Lessor understand that in certain circumstances the intended use of Equipment under an Appendix by the City may be such that the interest component of Lease Payments under said Appendix does not qualify for exemption from federal income tax. In such an event the Equipment Lease Rate for said Appendix shall be multiplied by 1.56 [1.56] in computing the Lease Payments for said Appendix and Sections 5.8.1 and 5.8.2 of the Lease shall not be applicable with respect to said Appendix. In addition, Schedule 4 to said Appendix shall have the following language inserted at the end of the second paragraph of said Schedule: “This Appendix is a taxable Appendix. The Equipment Lease Rate shall be further adjusted by multiplying said Equipment Lease Rate by [1.56]. Sections 5.8.1 and 5.8.2 of the Lease shall not be applicable with respect to this Appendix.”

Taxable Appendix. The City and Lessor understand that in certain circumstances the intended use of Equipment ofEquipment under an Appendix by the City may be such that the interest component of Lease Payments under said Appendix does not qualify for exemption from federal income tax. In such an event the Equipment Lease Rate for said Appendix shall be multiplied by 1.56 in computing the Lease Payments for said Appendix and Sections 5.8.1 and 5.8.2 of the ofthe Lease shall not be applicable with respect to said Appendix. In addition, Schedule 4 to said Appendix shall have the following language inserted at the end of the ofthe second paragraph of said ofsaid Schedule: “This Appendix is a taxable Appendix. The Equipment Lease Rate shall be further adjusted by multiplying said Equipment Lease Rate by 1.56. Sections 5.8.1 and 5.8.2 of the ofthe Lease shall not be applicable with respect to this Appendix.”