Tax Gross-Up

Definition:

If a payment is subject to a withholding tax, a provision in a Debt Instrument that requires the issuer to pay an amount in addition to a payment due under the Debt Instrument such that the holder receives an amount equal to the payment due plus the amount subject to withholding tax. Effectively, the holder receives a payment equal to the amount it would have received if no withholding taxes had been imposed.

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