Texas Tax Indemnity and Debt Maintenance Agreement

• Category: Texas Contracts - Indemnification
• State: Texas
• Control #: TX-C-I-9000-5
• Format: Word; Rich Text

Description

This is a sample Tax Indemnity and Debt Maintenance Agreement. This sample agreement deals with Omnibus Agreements and REITs also. Indemnification, also referred to as indemnity, is an undertaking by one party (the indemnifying party) to compensate the other party (the indemnified party) for certain costs and expenses, typically stemming from third-party claims. Tax indemnifications are contractual arrangements established between two parties. Income tax indemnifications can arise from a number of circumstances, including business combinations, spin-offs and IPOs. The form may be customized to suit your needs. Texas Tax Indemnity and Debt Maintenance Agreement (STIGMA) is an agreement between two or more parties, typically a borrower and a lender, in regard to the borrower's tax liabilities. The agreement allows the lender to be indemnified against any taxes incurred by the borrower on a loan or other debt instrument. The agreement also outlines the terms and conditions of a debt maintenance agreement between the parties, which details the lender's responsibility to maintain the borrower's tax liability. The agreement typically includes a clause that requires the borrower to indemnify the lender against any taxes the borrower incurs as a result of the loan or debt instrument. It also outlines the lender's responsibility to maintain the borrower's tax liability, such as making timely payments on the loan and filing any necessary tax returns. Additionally, the agreement will often include provisions that limit the lender's liability in the event of a borrower's default or bankruptcy. There are two types of Texas Tax Indemnity and Debt Maintenance Agreements: the General Agreement and the Limited Agreement. The General Agreement provides the broadest coverage and protection for the lender and requires the borrower to indemnify the lender against any taxes incurred by the borrower on the loan or debt instrument. The Limited Agreement, as its name implies, provides limited coverage for the lender and does not require the borrower to indemnify the lender against taxes incurred.

Texas Tax Indemnity and Debt Maintenance Agreement (STIGMA) is an agreement between two or more parties, typically a borrower and a lender, in regard to the borrower's tax liabilities. The agreement allows the lender to be indemnified against any taxes incurred by the borrower on a loan or other debt instrument. The agreement also outlines the terms and conditions of a debt maintenance agreement between the parties, which details the lender's responsibility to maintain the borrower's tax liability. The agreement typically includes a clause that requires the borrower to indemnify the lender against any taxes the borrower incurs as a result of the loan or debt instrument. It also outlines the lender's responsibility to maintain the borrower's tax liability, such as making timely payments on the loan and filing any necessary tax returns. Additionally, the agreement will often include provisions that limit the lender's liability in the event of a borrower's default or bankruptcy. There are two types of Texas Tax Indemnity and Debt Maintenance Agreements: the General Agreement and the Limited Agreement. The General Agreement provides the broadest coverage and protection for the lender and requires the borrower to indemnify the lender against any taxes incurred by the borrower on the loan or debt instrument. The Limited Agreement, as its name implies, provides limited coverage for the lender and does not require the borrower to indemnify the lender against taxes incurred.