Taxation of Interest. Payments or accruals of interest on debt securities generally will be taxable to holders as ordinary interest income at the time such interest is received (actually or constructively) or accrued, in accordance with their regular method of accounting for federal income tax purposes.
Taxation of Interest. If the Borrower has converted the Credit Facility to a tax-exempt financing as set forth in Section 2.1, take nor fail to take any action which action or failure to act is within the power and authority of the Borrower and would result in interest payable by the Borrower (i) being included in gross income of the Bank for federal income tax purposes, or (ii) otherwise being subject to the federal income tax. Such actions may include: making certifications and representations; giving assurances; paying to the United States of America any required amounts representing rebates of arbitrage profits relating to proceeds of Advances; filing forms, statements, and supporting documents as may be required under the Code and Regulations; limiting the term of and yield on investments made with proceeds of Advances; and limiting the use of the proceeds of Advances. In addition to other actions under this Section, if the Borrower has converted the Credit Facility to a tax-exempt financing as set forth in Section 2.1, (i) the Borrower shall file with the Internal Revenue Service properly completed Form 8038-G as and when required by the Code and Regulations and shall, if requested by the Bank, promptly deliver to the Bank, a copy of each filed Form 8038-G, and (ii) the Borrower shall declare and certify in writing in form and substance as specified by the Bank whether or not all Advances/Warrants are Qualified Tax Exempt Obligations , as such term is defined in Section 265 or any successor or replacement provision of the Code and Regulations, and deliver to Bank a copy of such declaration promptly after request by the Bank.
Taxation of Interest. Borrower shall neither take nor fail to take any action which action or failure to act is within the power and authority of such Borrower and would result in interest payable by such Borrower under the Note (i) being included in gross income of Bank for federal income tax purposes, or (ii) otherwise being subject to the federal income tax. Such actions may include, without limitation: making certifications and representations; giving assurances; paying to the United States of America any required amounts representing rebates of arbitrage profits relating to proceeds of Advances to such Borrower; filing forms, statements, and supporting documents as may be required under the Code and Regulations; limiting the term of and yield on investments made with proceeds of Advances to such Borrower; and limiting the use of the proceeds of Advances to such Borrower. In addition to other actions under this Section 5.7, the Cochise County Treasurer, as agent for Borrower, shall sign and file with the Internal Revenue Service properly completed Forms 8038-G provided by Bank as and when required by the Code and Regulations and shall promptly deliver to Bank a copy of each filed Form 8038-G.
