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
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How to fill out Texas Tax Indemnity And Debt Maintenance Agreement?
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FAQ
Under Texas law, ?common-law indemnity is extremely rare and 'only a vestige of common law indemnity remains.
TEXAS ANTI-INDEMNITY ACT Prohibits and makes void broad form and intermediate form indemnity agreements (claims involving the sole or concurrent negligence of indemnitee) for construction projects, if the Act applies to your contract.
The Texas Constitution provides that the State cannot give, lend or pledge the credit of the State to any person, association or corporation, or make any grant of public monies to any person, association or corporation without express authority.
Anti-Indemnification Statute Exceptions Examples include: Indemnification of a party or third party for the death or bodily injury of an indemnitor's employee, or that of its agent or subcontractor (?action over claims?). Public works projects. Residential construction contracts.
An indemnification agreement, also called an indemnity agreement, hold harmless agreement, waiver of liability, or release of liability, is a contract that provides a business or a company with protection against damages, loss, or other burdens.
Anti-indemnity statutes use public policy to limit the amount of indemnification a contract can require. States enacted them to fight an imbalance of negotiating power between upstream and downstream entities. They protect indemnitors from taking on more than their fair share of the risk.
Texas Insurance Code § 151.102 and Indemnity in Texas Indemnity clauses are contractual provisions that commit one party to compensate the other for losses arising out of a commercial contract.
Forty-five (45) states have enacted anti-indemnity statutes that limit or prohibit enforcing indemnification agreements in construction settings.