NBB-SSS Sample Clauses

NBB-SSS. The holding of the Convertible Bonds in the NBB securities settlement system permits most types of investors (the "Eligible Investors", see below) to collect interest on their Convertible Bonds free of Belgian withholding tax, and to trade their Convertible Bonds on a gross basis. Participants in the NBB-SSS operated by the NBB must keep the Convertible Bonds they hold for the account of Eligible Investors on an exempt securities account (an "X-account"), and those they hold for the account of " Non-Eligible Investors" on a non-exempt securities account "N-account". Payments of interest made through X-accounts will be made free of Belgian withholding tax; payments of interest made through N-accounts are subject to a withholding tax of 27%, which the NBB deducts from the interest payment and pays over to the tax authorities. Transfers of Convertible Bonds between an X-account and an N-account give rise to certain adjustment payments on account of withholding tax :  a transfer from an N-account to an X-account gives rise to the payment by the transferor or Non-Eligible Investor to the NBB of withholding tax on the accrued fraction of interest calculated from the last interest payment date up to the transfer date;  a transfer from an X-account to an N-account gives rise to the refund by the NBB to the transferee or Non-Eligible Investor of withholding tax on the accrued fraction of interest calculated from the last interest payment date up to the transfer date;  transfers of Convertible Bonds between two X-accounts do not give rise to any adjustment on account of withholding tax;  transfers of Convertible Bonds between two N-accounts give rise to the payment by the transferor or Non-Eligible Investor to the NBB of withholding tax on the accrued fraction of interest calculated from the last interest payment date up to the transfer date, and to the refund by the NBB to the transferee or Non-Eligible Investor of withholding tax on the same interest amount. These adjustment mechanics are such that parties trading the Convertible Bonds on the secondary market, irrespective of whether they are Eligible or Non-Eligible Investors, are in a position to quote prices on a gross basis. The main categories of Eligible Investors are the following:  Belgian resident corporate investors;  state regulated institutions for social security or institutions assimilated therewith;  corporate investors who are non-residents of Belgium, regardless of whether they have a perma...