Common use of Texas Margin Tax Clause in Contracts

Texas Margin Tax. In the event that a tax is levied or assessed upon the Issuer or upon all or part of the Trust Estate under HB3, which tax becomes due and payable by the Issuer, the Originator covenants and agrees to pay such tax to the applicable taxing authority on behalf of the Issuer when and as due and payable by the Issuer. Notwithstanding anything to the contrary contained herein, nothing in this Insurance Agreement should be read to imply that the Issuer is doing business in Texas, has sufficient nexus with Texas in order for HB3 to apply to the Issuer or is otherwise subject to the tax described in HB3.