Common use of Taxes, Claims for Labor and Materials Clause in Contracts

Taxes, Claims for Labor and Materials. Borrowers will pay or cause to be paid when due all taxes, assessments, governmental charges or levies imposed upon them or their respective income, profits, payroll or any property belonging to either of them, including without limitation all withholding taxes, and all claims for labor, materials and supplies which, if unpaid, might become a lien or charge upon any of their properties or assets; provided that Borrowers shall not be required to pay any such tax (other than real estate taxes which must be paid regardless of challenge), assessment, charge, levy or claim so long as the validity thereof shall be contested in good faith by appropriate proceedings promptly initiated and diligently conducted by them, and neither execution nor foreclosure sale or similar proceedings shall have been commenced in respect thereof (or such proceedings shall have been stayed pending the disposition of such contest of validity), and they shall have set aside on their books, or at the request of Bank (after the occurrence and during the continuation of an Event of Default) deposited with Bank, adequate reserves with respect thereto. No Borrower will file or consent to the filing of, any consolidated income tax return with any Person other than a Subsidiary or the other Borrower.

Taxes, Claims for Labor and Materials. Borrowers Borrower will pay or cause to be paid when due all taxes, assessments, governmental charges or levies imposed upon them it or their respective its income, profits, payroll or any property belonging to either of themit, including without limitation all withholding taxes, and all claims for labor, materials and supplies which, if unpaid, might become a lien or charge upon any of their its properties or assets; provided that Borrowers it shall not be required to pay any such tax (other than real estate taxes which must be paid regardless of challenge), assessment, charge, levy or claim so long as the validity thereof shall be contested in good faith by appropriate proceedings promptly initiated and diligently conducted by themit, and neither execution nor foreclosure sale or similar proceedings shall have been commenced in respect thereof (or such proceedings shall have been stayed pending the disposition of such contest of validity), and they (a) it shall have set aside on their books, or at the request of Bank (after the occurrence and during the continuation of an Event of Default) deposited with Bank, its books adequate reserves with respect thereto, and (b) either (i) it shall have deposited with Bank adequate cash reserves with respect thereto or (ii) Bank shall have established a Tax Reserve with respect thereto. No Borrower will not file or consent to the filing of, any consolidated income tax return with any Person other than a Subsidiary or the other BorrowerSubsidiary.