Common use of Status as a REIT Clause in Contracts

Status as a REIT. The REIT (i) shall for its first taxable year elect to qualify (but has not so elected as of the Closing Date), and for each subsequent taxable year shall maintain its classification, as a real estate investment trust as defined in Section 856 of the Code, (ii) has not engaged in any "prohibited transactions" as defined in Section 856(b)(6)(iii) of the Code, (iii) for its current "tax year" (as defined in the Code) is, and for all taxable years subsequent to its election to be a real estate investment trust shall remain, entitled to a dividends paid deduction which meets the requirements of Section 857 of the Code and (iv) its ownership and method of operation enable it to meet the requirements for taxation as a real estate investment trust under the Code.