Common use of Retesting of the Service Fee Clause in Contracts

Retesting of the Service Fee. If, at any time or from time to time, during the Term, (1) the scope of the Operation Services is increased or reduced pursuant to the terms of this Agreement and (2) there is an adjustment to the Operating and Maintenance Charge due to such increase or reduction in the Operation Services, the parties shall retest, as of the date of such adjustment, the Service Fee for compliance with the private business use restrictions imposed by the IRS. Any such adjustment of the Operating and Maintenance Charge and retesting of the Service Fee shall, at the Borough’s cost, be subject to the review and approval of the Borough’s legal department or legal counsel with expertise in public finance tax matters for confirmation that such adjustment will not adversely affect the tax-exempt status of any obligations issued by the Borough with respect to the Wastewater System.

Appears in 2 contracts

Sources: Wastewater Treatment System Operation and Maintenance Agreement, Wastewater Treatment System Operation and Maintenance Agreement