Template:ISDA Master Agreement 2002 2(d)(i): Difference between revisions

{{isdaprov|2(d)(i)}} '''{{isdaprov|Gross-Up}}'''. All payments under this {{isdaprov|Agreement}} will be made without any deduction or withholding <br>for or on account of any {{isdaprov|Tax}} unless such deduction or withholding is required by any applicable law, as <br>modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so <br>required to deduct or withhold, then that party (“X”) will:―<br>

:(1) promptly notify the other party (“Y”) of such requirement;<br>

:(2) pay to the relevant authorities the full amount required to be deducted or withheld <br>(including the full amount required to be deducted or withheld from any additional amount paid by <br>X to Y under this Section {{isdaprov|2(d)}}) promptly upon the earlier of determining that such deduction or <br>withholding is required or receiving notice that such amount has been assessed against Y;<br>

:(3) promptly forward to Y an official receipt (or a certified copy), or other documentation <br>reasonably acceptable to Y, evidencing such payment to such authorities; and<br>

:(4) if such {{isdaprov|Tax}} is an {{isdaprov|Indemnifiable Tax}}, pay to Y, in addition to the payment to which Y is <br>otherwise entitled under this {{isdaprov|Agreement}}, such additional amount as is necessary to ensure that the <br>net amount actually received by Y (free and clear of {{isdaprov|Indemnifiable Taxes}}, whether assessed against <br>X or Y) will equal the full amount Y would have received had no such deduction or withholding <br>been required. However, X will not be required to pay any additional amount to Y to the extent that <br>it would not be required to be paid but for:―<br>

::(A) the failure by Y to comply with or perform any agreement contained in <br>Section {{isdaprov|4(a)(i)}}, {{isdaprov|4(a)(iii)}} or {{isdaprov|4(d)}}; or<br>

::(B) the failure of a representation made by Y pursuant to Section {{isdaprov|3(f)}} to be accurate <br>and true unless such failure would not have occurred but for (I) any action taken by a <br>taxing authority, or brought in a court of competent jurisdiction, after a {{isdaprov|Transaction}} is <br>entered into (regardless of whether such action is taken or brought with respect to a party <br>to this Agreement) or (II) a {{isdaprov|Change in Tax Law}}.