Common use of REIT Limitations Clause in Contracts

REIT Limitations. During the term of the Partnership, the following limitations shall apply: 14.2.1 The assets of the Partnership will consist only of direct ownership interests in (1) cash or cash items within the meaning of Code Section 856(c)(4)(A), (2) real estate assets within the meaning of Code Section 856(c)(5)(B); and (3) the Project. At least ninety-five percent (95%) of the fair market value of the Property will at all times consist of real estate assets within the meaning of Code Section 856(c)(5)(B). Specifically, but without limitation, the Partnership will not during its term: (i) acquire, form, own or hold any stock of or other ownership interest in a corporation (or other entity treated for federal income tax purposes as an association taxable as a corporation) or any ownership interest in a partnership, limited liability company, trust or other entity other than an entity that is disregarded as an entity separate from its owner for federal income tax purposes through which the Partnership holds the Property; (ii) merge with or into (or otherwise transfer all or a portion of its interests to) a partnership, corporation, trust or other entity; (iii) acquire, own or hold any convertible debt instrument; (iv) acquire, own or hold any security, warrant, option, subscription agreement, or contract for the acquisition of a security within the meaning of the Investment Company Act of 1940, as amended, or Code Section 856(c)(4), including without limitation, any security described in Code Section 856(c)(4)(B)(iii)(II) or Code Section 856(c)(4)(B)(iii)(III); (v) acquire, own, sell, hold or create any asset or other property that is stock in trade or other property of a kind which would properly be included in inventory of the Partnership if on hand at the close of the taxable year or property held by the Partnership primarily for sale to customers in the ordinary course of its trade or business, within the meaning of Code Section 1221(a)(1), including interests in residential development property; (vi) acquire, own or operate a motel, hotel or healthcare facility; (vii) conduct any business other than the business of owning and operating the Property (directly or indirectly) or as otherwise permitted under Section 2.6; or (viii) accept any capital contribution after the date hereof other than a cash contribution.

REIT Limitations. During the term of the Partnership, the following limitations shall apply: 14.2.1 The assets of the Partnership will consist only of direct ownership interests in (1) cash or cash items within the meaning of Code Section 856(c)(4)(A), (2) real estate assets within the meaning of Code Section 856(c)(5)(B); and (3) the ProjectProperties. At least ninety-five percent (95%) of the fair market value of the Property will at all times consist of real estate assets within the meaning of Code Section 856(c)(5)(B). Specifically, but without limitation, the Partnership will not during its term: (ia) acquire, form, own or hold any stock of or other ownership interest in a corporation (or other entity treated for federal income tax purposes as an association taxable as a corporation) or any ownership interest in a partnership, limited liability company, trust or other entity other than an entity that is disregarded as an entity separate from its owner for federal income tax purposes through which the Partnership holds the Property; (iib) merge with or into (or otherwise transfer all or a portion of its interests to) a partnership, corporation, trust or other entity; (iiic) acquire, own or hold any convertible debt instrument; (ivd) acquire, own or hold any security, warrant, option, subscription agreement, or contract for the acquisition of a security within the meaning of the Investment Company Act of 1940, as amended, or Code Section 856(c)(4), including without limitation, any security described in Code Section 856(c)(4)(B)(iii)(II) or Code Section 856(c)(4)(B)(iii)(III); (ve) acquire, own, sell, hold or create any asset or other property that is stock in trade or other property of a kind which would properly be included in inventory of the Partnership if on hand at the close of the taxable year or property held by the Partnership primarily for sale to customers in the ordinary course of its trade or business, within the meaning of Code Section 1221(a)(1), including interests in residential development property; (vif) acquire, own or operate a motel, hotel or healthcare facility; (viig) conduct any business other than the business of owning and operating the Property (directly or indirectly) or as otherwise permitted under Section 2.6; or (viiih) accept any capital contribution after the date hereof other than a cash contribution.

REIT Limitations. During the term of the Partnership, the following limitations shall applyapply and the Managing Partner shall use all commercially reasonable efforts to cause the Partnership to comply with such limitations, unless in any instance TRT agrees otherwise in writing: 14.2.1 (a) The assets of the Partnership and the Subsidiaries will consist only of direct ownership interests in (1) cash or cash items and government securities, both within the meaning of Code Section 856(c)(4)(A), (2) real estate assets within the meaning of Code Section 856(c)(5)(B); and (3) interests in one or more of the ProjectSubsidiaries; and (4) the Properties. At least ninety-five percent (95%) of the fair market value of the Property Properties will at all times consist of real estate assets within the meaning of Code Section 856(c)(5)(B). Specifically, but without limitation, neither the Partnership nor any of the Subsidiaries will not during its term: (i) acquire, form, own or hold any stock of or other ownership interest in a corporation (or other entity treated for federal income tax purposes as an association taxable as a corporation) or any ownership interest in a partnership, limited liability company, trust or other entity other than an entity that is disregarded as an entity separate from its owner for federal income tax purposes through which the Partnership holds the PropertyProperties; (ii) merge with or into (or otherwise transfer all or a portion of its interests to) a partnership, corporation, trust or other entity; (iii) acquire, own or hold any convertible debt instrument; (iv) acquire, own or hold any security, warrant, option, subscription agreement, or contract for the acquisition of a security within the meaning of the Investment Company Act of 1940, as amended, or Code Section 856(c)(4), including without limitation, any security described in Code Section 856(c)(4)(B)(iii)(II) or Code Section 856(c)(4)(B)(iii)(III); (v) acquire, own, sell, hold or create any asset or other property that is stock in trade or other property of a kind which would properly be included in inventory of the Partnership if on hand at the close of the taxable year or property held by the Partnership primarily for sale to customers in the ordinary course of its trade or business, within the meaning of Code Section 1221(a)(1), including interests in residential development property; (vi) acquire, own or operate a motel, hotel motel or healthcare facilityhotel; (vii) conduct any business other than the business of owning and operating the Property (directly or indirectly) Properties or as otherwise permitted under Section 2.62.2; or (viii) other than the Initial Capital Contributions, accept any capital contribution after the date hereof other than a cash contribution.