Common use of Permitted Modifications Clause in Contracts

Permitted Modifications. If the Issuer is classified as a fixed investment trust described in Treasury Regulation Section 301.7701-4(c) that is treated as a grantor trust under subtitle A, chapter 1, subchapter J, part I, subpart E of the Code, the parties will take no action or direct any other party to take any action inconsistent therewith, including modifying, or directing any other party to modify, the terms of a Lease or Leased Vehicle unless the modification is a Permitted Modification. The Issuer will not at any time engage in or carry on any kind of business for U.S. federal income tax purposes or any kind of commercial activity. Notwithstanding anything to the contrary in this Agreement or otherwise, [neither][none of] the Issuer[,] [nor] the Owner Trustee [or the Delaware Trustee] ([n]or any agent of [either][such] person) shall (1) acquire any assets or dispose of any portion of the assets of the Issuer other than pursuant to the specific provisions of this Agreement or any other Transaction Document, (2) have the power to vary the investment of the Issuer within the meaning of Treasury Regulation Section 301.7701-4(c) or (3) substitute new investments or reinvest so as to enable the Issuer to take advantage of variations in the market to improve the investment of the holder of the Residual Interest. The provisions of this Agreement and the other Transaction Documents will be interpreted consistently with and to further this intention of the parties.]