FATCA Deductions Sample Clauses
A FATCA Deductions clause allows a party, typically a financial institution, to withhold amounts from payments in order to comply with the U.S. Foreign Account Tax Compliance Act (FATCA). This clause applies when payments made under the agreement could be subject to U.S. tax withholding requirements due to the recipient's status or failure to provide necessary tax documentation. By including this provision, the agreement ensures that the paying party is not penalized for non-compliance with FATCA, effectively allocating the risk of tax withholding to the recipient and ensuring regulatory compliance.
FATCA Deductions. (a) Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
(b) Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payments and, in addition, shall notify the Company and the Facility Agent and the Facility Agent shall notify the other Finance Parties.
FATCA Deductions. (a) Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
(b) Each Party shall reasonably promptly, upon becoming aware that it must make a FATCA Deduction, notify the Party to whom it is making the payment and, in addition, shall notify the Borrower and the Agent and the Agent shall notify the other Finance Parties.
FATCA Deductions. (i) Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
(ii) Each Party shall, promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), and in any case at least three (3) Business Days prior to making a FATCA Deduction, notify the Party to whom it is making the payment and, on or prior to the day on which it notifies that Party, shall also notify the Borrower, the Administrative Agent and the other Lenders.
FATCA Deductions. If the Administrative Agent or a Syndication Party reasonably believes that an amendment or waiver may constitute a "material modification" for the purposes of FATCA that may result (directly or indirectly) in a deduction or withholding required to be made in respect of a payment to the Administrative Agent or such Syndication Party, under any Loan Document and the Administrative Agent or that Syndication Party (as the case may be) notifies the Borrower and the Administrative Agent accordingly, that amendment or waiver may not be effected without the consent of (x) the Administrative Agent and all Syndication Parties, in case such deduction or withholding may result in respect of a payment to the Administrative Agent hereunder or (y) that Syndication Party, in case such deduction or withholding may result in respect of a payment to such Syndication Party hereunder.
FATCA Deductions. 9.7.1 Each party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction and no party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
9.7.2 Each party shall promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of a FATCA Deduction) notify the party to whom it is making the payment.