Substitute Dividends definition

Substitute Dividends means a Substitute Dividend for the purposes of section 871(m) of the Code which is treated by that section as a dividend from sources within the United States of America and so is subject to withholding of US Tax.
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Examples of Substitute Dividends in a sentence

  • Where any of paragraphs 5, 6 or 7 of this Addendum apply, except as otherwise agreed, Borrower shall not be obliged to pay an additional amount under paragraph 12.2(d) of the Agreement in respect of any payment made under paragraph 6.2 of the Agreement in respect of withholding taxes imposed on payments of Substitute Dividends.

  • At any time performing a withdrawal of Securities lent to KPEI after the Minimum Term as referred to in the Agreement has been exceeded; Receive Substitute Dividends in the form of cash dividends, securities dividends, cash bonuses and securities bonuses on the performance date of the corporate action (distribution date) in which the substitute dividends received are the same in value as the dividends paid by the Issuer to Securities Holders.

  • It fails to pay damages compensation as referred to in Article 9; It does not deliver Substitute Dividends in the form of cash dividends, securities dividends, cash bonuses and bonus securities on the implementation date of the Corporate Action (Distribution Date) in which the substitute dividends paid are equal to the dividends paid by the Issuer to the Securities Holder.