Arbitrage Compliance Clause Samples
The Arbitrage Compliance clause ensures that all parties adhere to applicable laws and regulations designed to prevent arbitrage, particularly in financial or tax-sensitive transactions. This clause typically requires parties to avoid structuring transactions in a way that exploits differences in regulations or tax treatments across jurisdictions, and may obligate them to provide documentation or certifications confirming compliance. Its core function is to mitigate legal and financial risks by ensuring that the transaction does not inadvertently violate anti-arbitrage rules, thereby protecting all parties from potential penalties or invalidation of the agreement.
Arbitrage Compliance. (a) The Borrower and the Issuer acknowledge that the continued exclusion of interest on the Bonds from gross income of the recipients thereof for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed byss. 148 of the Code, including the rebate requirement described in Section
Arbitrage Compliance. The Issuer and the Company acknowledge that the continued exclusion of interest on the Bonds from gross income of the recipients for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by Section 148 of the Code, including the rebate requirement described in Sections 4.03, 4.04 and 4.05 below. The Issuer shall not control or otherwise be involved in any investment decisions relating to the proceeds of the Bonds, nor shall it be required to monitor any such investment decisions. The Company hereby agrees to take the actions described in Sections 4.03 through 4.05 below with respect to the investment of Gross Proceeds on deposit in the funds and accounts established under the Indenture and to direct the Trustee in writing to make the required transfers and dispositions described in Sections 4.03, 4.04 and 4.05 below.
Arbitrage Compliance. The Borrower and the Issuer acknowledge that the continued exclusion of interest on the Bonds from gross income of the recipients thereof for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by ss. 148 of the Code, including the rebate requirement described in Section 4.3
Arbitrage Compliance. 18 Section 4.03. Calculation of Rebate Amount.....................................19 Section 4.04. Payment to United States.........................................21 Section 4.05. Recordkeeping....................................................22 Section 4.06. Rebate Analyst...................................................22 Article V COMPLIANCE WITH CODE...............................................................23 Article VI TERM OF TAX REGULATORY AGREEMENT...................................................24 Article VII AMENDMENTS.........................................................................24 Article VIII EVENTS OF DEFAULT, REMEDIES
Arbitrage Compliance. 10 Section 4.2. Arbitrage Representations 10
Arbitrage Compliance. (a) The City acknowledges that the continued exclusion of interest on the Notes from gross income of the recipients thereof for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by Section 148 of the Code, including the rebate requirement described in Section 4.6 below. The City hereby agrees and covenants that it will not permit at any time or times any of the Gross Proceeds of the Notes nor other funds of the City to be used, directly or indirectly, to acquire any asset or obligation, the acquisition of which would cause the Notes to be "arbitrage bonds" for purposes of Section 148 of the Code. The City further agrees and covenants that it shall do and perform all acts and things necessary in order to ensure that the requirements of Section 148 of the Code are met. To that end, the City will take the actions described in this Article IV with respect to the investment of Gross Proceeds.
(b) This Tax Regulatory Agreement is intended to be the certificate required by Section 1.148-2(d)(2) of the Regulations.
Arbitrage Compliance. 18 Section 4.3. Calculation of Rebate Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 4.4. Payment to United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 4.5. Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 4.6. Rebate Analyst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Arbitrage Compliance. The Company acknowledges that the continued exemption of interest on the Bonds from federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by Section 148 of the Code, including the rebate requirement described in Section 7.3 hereof and the one hundred-fifty percent requirement described in Section 7.7 hereof. The Issuer has, in the Installment Sale Agreement, authorized the Company to take all actions necessary to comply with the rebate requirements. The Company hereby agrees and covenants that it shall not permit at any time any of the proceeds of the Bonds or other funds of the Company to be used, directly or indirectly, to acquire any asset or obligation, the acquisition of which would cause any of the Bonds to be an "arbitrage bond" for purposes of Section 148 of the Code. The Company further agrees and covenants that it shall do and perform all acts and things necessary in order to assure that the requirements of Section 148(f) of the Code (formerly Section 103(a)(6) of the 1954 Code) are met. To that end, the Company, on behalf of the Issuer, shall take the actions described in such Sections 7.3 through 7.7 hereof and any other actions required under Section 148 and the applicable Regulations with respect to the investment of proceeds on deposit in the funds and accounts established under the Indenture.
Arbitrage Compliance. The Corporation and the Issuer acknowledge that the continued exclusion of interest on the Series 2017 Bonds from gross income of the recipients thereof for purposes of federal income taxation depends, in part, upon compliance with the arbitrage limitations imposed by Section 148 of the Code, including the rebate requirement described in Section 4.04