Common use of REIT Limitations on Investment of Sums in Escrow Accounts Clause in Contracts

REIT Limitations on Investment of Sums in Escrow Accounts. (a) Notwithstanding anything herein to the contrary, Lender hereby acknowledges the status of MCC as a real estate investment trust (“REIT”) and Lender agrees that it shall only invest amounts held in the Escrow Accounts in a manner that is not inconsistent with the status of MCC as a REIT and which will not cause MCC to fail: (a) the annual gross income tests set forth in Section 856(c)(2) and (3) of the Code; and (b) the quarterly assets tests set forth in Section 856(c)(4) of the Code and which minimizes federal, state and local income and excise taxes incurred by MCC or any of its Affiliates, including taxes under Section 857(b), 860(c) and 4981 of the Code. (b) Lender may invest the sums held in the Escrow Accounts in Permitted Investments. Notwithstanding anything herein to the contrary, the Lender shall not invest the sums held in the Escrow Accounts, except as set forth in this Section 5.16, without the prior written approval of the Manager, which consent shall not be unreasonably withheld, conditioned or delayed.

REIT Limitations on Investment of Sums in Escrow Accounts. (a) Notwithstanding anything herein to the contrary, Lender hereby acknowledges the status of each of MCC and SLG as a real estate investment trust (“REIT”) and Lender agrees that it shall only invest amounts held in the Escrow Accounts in a manner that is not inconsistent with the status of each of MCC and SLG as a REIT and which will not cause MCC and SLG to fail: (a) the annual gross income tests set forth in Section 856(c)(2) and (3) of the Code; and (b) the quarterly assets tests set forth in Section 856(c)(4) of the Code and which minimizes federal, state and local income and excise taxes incurred by MCC or SLG or any of its their respective Affiliates, including taxes under Section 857(b), 860(c) and 4981 of the Code. (b) Lender may invest the sums held in the Escrow Accounts in Permitted Investments. Notwithstanding anything herein to the contrary, the Lender shall not invest the sums held in the Escrow Accounts, except as set forth in this Section 5.16, without the prior written approval of the Manager, which consent shall not be unreasonably withheld, conditioned or delayed.