Tax Materiality Condition definition

Tax Materiality Condition. The condition that will be satisfied if either (i) as a result of a Tax Event, a tax or taxes are imposed on the Issuer or withheld from payments to the Issuer and with respect to which the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred and such amount exceeds, in the aggregate, U.S.$1 million during any 12-month period or (ii) the Issuer fails to maintain its status as a Qualified REIT Subsidiary or other disregarded entity of a REIT and is not a foreign corporation that is not engaged in a trade or business in the United States for U.S. federal income tax purposes or otherwise subject to U.S. federal income tax on a net income basis.

Tax Materiality Condition means a condition that is satisfied during any 12-month period if the sum of (i) the aggregate amount deducted or withheld during such 12-month period for or on account of any tax by all obligors or paying agents from payments to the Issuer under any Collateral Debt Security or under any Corresponding Debenture or in respect of any Limited Guarantee (net of any gross-up payment made by such obligor to the Issuer) and (ii) the aggregate amount of any net income, profits or similar tax imposed on the Issuer during such 12-month period exceeds U.S.$1,500,000.

Tax Materiality Condition. The condition that will be satisfied if either (i) as a result of the occurrence of a Tax Event, a tax or taxes are imposed on the Issuer or withheld from payments to the Issuer and with respect to which the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred, and such amount exceeds, in the aggregate, U.S. $1 million during any 12-month period or (ii) the Issuer fails to maintain its status as a qualified REIT subsidiary (within the meaning of Section 856(i)(2) of the Code).

Examples of Tax Materiality Condition in a sentence

• In connection with a Tax Redemption, the occurrence of a Tax Event and satisfaction of the Tax Materiality Condition shall be evidenced by an Issuer Order from the Issuer or from the Loan Obligation Manager on behalf of the Issuer certifying that such conditions for a Tax Redemption have occurred.

• In connection with a Tax Redemption, the occurrence of a Tax Event and satisfaction of the Tax Materiality Condition shall be evidenced by an Issuer Order from the Issuer or from the Collateral Manager on behalf of the Issuer certifying that such conditions for a Tax Redemption have occurred.

• Pursuant to Section 9.1(b) of the Indenture, the Notes and the Preferred Shares shall be redeemable, in whole but not in part, by Act of a Majority of the Preferred Shares delivered to the Trustee, on the Payment Date following the occurrence of a Tax Event if the Tax Materiality Condition is satisfied at a price equal to the applicable Redemption Prices; provided that that the funds available to be used for such Tax Redemption will be sufficient to pay the Total Redemption Price.

• Pursuant to Section 9.1(b) of the Indenture, the Class A Loans and the Notes shall be redeemable, in whole but not in part, by the Issuer, at their applicable Redemption Prices, upon the occurrence of a Tax Event, if the Tax Materiality Condition is satisfied, at the direction of the Majority Class G Noteholder; provided that that the funds available to be used for such Tax Redemption will be sufficient to pay the Total Redemption Price.

• On any Payment Date after the Closing Date, the Notes, subject to satisfaction of certain conditions described herein, will be redeemed in whole, but not in part, by the Co-Issuers at the direction of Majority-in-Interest of Preference Shareholders (including any Preference Shares held by the Collateral Manager and any of its Affiliates) or a Majority of any Affected Class following the occurrence of a Tax Event in an amount satisfying the Tax Materiality Condition.

More Definitions of Tax Materiality Condition

Tax Materiality Condition. A condition that will be satisfied if either (a) as a result of the occurrence of a Tax Event, a tax or taxes are imposed on the Issuer or withheld from payments to the Issuer and with respect to which the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred and such amount exceeds, in the aggregate, $1,000,000 during any 12 month period or (b) the Issuer becomes an association taxable as a corporation, a taxable mortgage pool or publicly traded partnership, in each case subject to U.S. federal income tax on a net basis.

Tax Materiality Condition. The condition that will be satisfied if either (i) as a result of the occurrence of a Tax Event, a tax or taxes are imposed on the Issuer or withheld from payments to the Issuer and with respect to which the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred and such amount exceeds, in the aggregate, U.S.$1 million during any 12-month period or (ii) the Issuer fails to maintain its status as a Qualified REIT Subsidiary or other disregarded entity of a REIT for U.S. federal income tax purposes.

Tax Materiality Condition means a condition which will be satisfied during any 12-month period if the sum of the following exceeds U.S.$1,000,000: (i) the aggregate amount deducted or withheld for or on account of any tax by all obligors from any payment under any Collateral Debt Security (net of any gross-up payment made by such obligor to the Issuer), (ii) the aggregate amount of any net income, profits or similar tax imposed on the Issuer and (iii) the aggregate of any amounts of any “gross up” payments required to be paid by the Issuer on account of tax under a Hedge Agreement and the deficiencies in the amounts received by the Issuer as a result of any deduction or withholding for or on account of any tax with respect to any payment by the Issuer or any Hedge Counterparty under a Hedge Agreement.

Tax Materiality Condition. The condition that will be satisfied if either (i)

Tax Materiality Condition. The condition that will be satisfied if, as a result of the occurrence of a Tax Event, a tax or taxes are imposed on the Issuer or withheld from payments to the Issuer and with respect to which the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred and such amount exceeds, in the aggregate, U.S. $100,000 during any 12-month period.

Tax Materiality Condition means a condition that will be satisfied if the Issuer, the Collateral Manager or the holders of at least 66 2/3% of the Preference Shares certify (or deliver an opinion of counsel) to the Trustee that, as a result of all Tax Events that have occurred in a Due Period, the aggregate amounts deducted or withheld for or on account of any tax by all obligors from any payments under the Collateral Debt Securities (net of any gross-up payment made by such obligors to the Issuer), from all Hedge Counterparties (net of any gross-up payments made by them to the Issuer) and tax paid by the Issuer on its net income equals or exceeds three percent or more of the aggregate interest payments on all of the Collateral Debt Securities during the related Due Period.

Tax Materiality Condition. The condition that will be satisfied if as a result of the occurrence of a Tax Event, (i) a tax or taxes are either (A) imposed on the Issuer (but only with respect to federal income taxes as a result of an event described in clause (i) of the definition of Tax Event above) or (B) withheld from payments to the Issuer and the Issuer receives less than the full amount that the Issuer would have received had no such deduction occurred, or (ii) “gross up payments” required to be made by the Issuer exceed the amounts that the Issuer would have been required to pay had no deduction or withholding resulting in such gross up payments been required and the sum of (1) the taxes imposed (or net shortfalls, as applicable) described in clause (i) and (2) the excess “gross up payments” described in clause (ii) exceeds, in the aggregate, U.S. $1 million during any calendar year.