Common use of Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others Clause in Contracts

Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others. Subject to Section 2.6, the Owner Trustee shall (a) maintain (or cause to be maintained) the books of the Issuer on a calendar year basis on the accrual method of accounting, (b) deliver (or cause to be delivered) to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including, if applicable, Schedule K-1) to enable each Certificateholder to prepare its federal and state income tax returns, (c) prepare or cause to be prepared, and file or cause to be filed, all tax returns, if any, relating to the Issuer (including a partnership information return, Form 1065, if applicable), and make such elections as may from time to time be required or appropriate under any applicable state or federal statute or rule or regulation thereunder so as to maintain the Issuer’s characterization as a division or branch of its 100% owner, or as a partnership, as the case maybe, for federal income tax purposes, (d) cause such tax returns to be signed in the manner required by law and (e) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to Certificateholders. The Owner Trustee shall cooperate with the Depositor in making all elections pursuant to this Section as directed in writing by the Depositor. Unless the Seller or a majority of the Certificateholders if the Seller is no longer the Certificateholder advises otherwise, in the event the Trust is characterized as a partnership for federal income tax purposes, the Trust on its return shall elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables and shall elect under Section 171 of the Code to amortize any bond premium with respect to the Receivables. The Owner Trustee shall not make the election provided under Section 754 of the Code. None of the parties hereto shall make the election provided in Treasury Regulations Section 301.7701-3(c) to have the Trust classified as an association taxable as a corporation.

Appears in 1 contract

Sources: Trust Agreement (Bank One Auto Securitization LLC)

Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others. Subject to Section 2.6In accordance with Sections 10.1(b)(iii) and 10.1(c) of the Sale and Servicing Agreement, the Owner Trustee Servicer shall (a) maintain (or cause to be maintained) the books of the Issuer Trust on a calendar year basis ended September 30 based on the accrual method of accounting, (b) deliver (or cause to be delivered) to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including, if applicable, Schedule K-1) to enable each Certificateholder to prepare its federal Federal and state income tax returns, (c) prepare or cause to be prepared, and file or cause to be filed, all tax returns, if any, relating to the Issuer Trust (including including, if applicable, a partnership information return, Form 1065, if applicable), and to make such elections as may from time to time be required or appropriate under any applicable state or federal Federal statute or rule or regulation thereunder so as to maintain the Issuer’s Trust's characterization as a division or branch of its 100% owner, or as a partnership, as the case maybemay be, for federal Federal income tax purposes, purposes and (d) cause such tax returns to be signed in the manner required by law and (e) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to the Certificateholders. The Owner Trustee Servicer shall cooperate with the Depositor in making make all elections pursuant to this Section as directed in writing by the DepositorSeller. Unless the Seller or a majority The Owner Trustee shall, on behalf of the Certificateholders if Trust and upon written direction of the Seller is Servicer, sign all tax information returns furnished to it in execution form by the Servicer, and filed pursuant to this Section 5.6 and any other returns as may be required by law and so furnished to it by the Servicer, and in doing so shall rely entirely upon, and shall have no longer liability for information provided by, or calculations provided by, the Certificateholder advises otherwise, in Servicer. In the event the Trust is characterized as a partnership for federal income tax purposes, the Servicer shall cause the Trust on its return shall to elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables Receivables, and shall elect under Section 171 of the Code to amortize any bond premium with respect to the Receivables. The Owner Trustee Trust shall not make the election provided under Section 754 of the Code. None of the parties hereto shall make the election provided in Treasury Regulations Section 301.7701-3(c) to have the Trust classified as an association taxable as a corporation.

Appears in 1 contract

Sources: Trust Agreement (Franklin Receivables LLC)

Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others. Subject to Section 2.6, the Owner Trustee shall (a) maintain (or cause to be maintained) the books of the Issuer on a calendar year basis on the accrual method of accounting, (b) deliver (or cause to be delivered) to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including, if applicable, Form 1065 Schedule K-1) to enable each Certificateholder to prepare its federal and state income tax returns, (c) prepare or cause to be prepared, and file or cause to be filed, all tax returns, if any, relating to the Issuer (including a partnership information return, Form 1065, if applicable), and make such elections as may from time to time be required or appropriate under any applicable state or federal statute or rule or regulation thereunder so as to maintain the Issuer’s characterization as a division or branch of its 100% owner, or as a partnership, as the case maybe, for federal income tax purposes, (d) cause such tax returns to be signed in the manner required by law and (e) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to Certificateholders. The Owner Trustee shall cooperate with the Depositor in making all elections pursuant to this Section as directed in writing by the Depositor. Unless the Seller or a majority of the Certificateholders if the Seller is no longer the Certificateholder advises otherwise, in the event the Trust is characterized as a partnership for federal income tax purposes, the Trust on its return shall elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables and shall elect under Section 171 of the Code to amortize any bond premium with respect to the Receivables. The Owner Trustee shall not make the election provided under Section 754 of the Code. None of the parties hereto shall make the election provided in Treasury Regulations Section 301.7701-3(c) to have the Trust classified as an association taxable as a corporation.

Appears in 1 contract

Sources: Trust Agreement (Bank One Auto Securitization Trust 2003-1)