Federal Income Tax Matters. If there is more than one beneficial owner of the Certificates, net income or net loss of the Trust for any month as determined for federal income tax purposes (and each item of income, gain, loss and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first day following the Record Date, in proportion to their Percentage Interest evidencing the Certificates on the Record Date. If there is more than one beneficial owner of the Certificates (or if a Class of Notes is recharacterized as equity for U.S. federal tax purposes), the Trust is authorized to modify the allocations in this paragraph if necessary or appropriate, in its sole discretion, for the allocations to fairly reflect the economic income, gain or loss to the Certificateholders, or as otherwise required by the Code.
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Samples: Trust Agreement (USAA Auto Owner Trust 2006-3), Trust Agreement (USAA Auto Owner Trust 2006-2), Trust Agreement (USAA Auto Owner Trust 2006-4)
Federal Income Tax Matters. If there is more than one beneficial owner of the Certificates, net income or net loss of the Trust for any month as determined for federal income tax purposes (and each item of income, gain, loss and deduction entering into the computation thereof) shall be allocated among the Certificateholders as of the first day following the Record Date, in proportion to their Percentage Interest evidencing the Certificates on the Record Date. If there is more than one beneficial owner of the Certificates (or if a Class of Notes is recharacterized as equity for U.S. federal tax purposes), the Trust is authorized to modify the allocations in this paragraph if necessary or appropriate, in its sole discretion, for the allocations to fairly reflect the economic income, gain or loss to the Certificateholders, or as otherwise required by the Code.]
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