Company: EMICF
Filing Date: 2025-09-30
Form Type: 424B2
Source: 0000950103-25-012565
Chunk: 70

Company: EMERA INC
Filing Date: 2025-09-30
Form: 424B2
Chunk 70
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, as described above.
The Issuer’s determination that these contingencies are remote is binding on a U.S. Holder unless such holder discloses its contrary
position in the manner required by applicable Treasury Regulations. The Issuer’s determination is not, however, binding on the IRS.
There can be no assurance that the IRS or a court will agree with these positions. The meaning of the term “remote” in the
Treasury Regulations has not yet been addressed in any rulings or other guidance by the IRS or any court. If the possibility of interest
deferral were determined not to be remote, the Notes would be treated as issued with OID and all stated interest would be treated as OID
as long as the Notes are outstanding. In that case, U.S. Holders would be required to accrue interest income on the Notes using a constant
yield method whether or not they receive any cash payment attributable to that interest, regardless of their regular method of accounting
for U.S. federal income tax purposes.

Moreover, if the possibility
of excess payments following a Rating Agency Event were determined not to be remote, the Notes could be treated as “contingent payment
debt instruments,” in which case U.S. Holders could be required to accrue interest income on the Notes in excess of stated interest
and would be required to treat as ordinary income rather than as capital gain any income realized on a taxable disposition of the Notes,
as described below.

The remainder of this discussion
assumes the Notes will not be treated as issued with OID or as contingent payment debt instruments.

Exercise of Deferral Option

Under the Treasury Regulations,
if the Issuer exercises the option to defer the payment of interest on the Notes, the Notes will be treated as if they had been redeemed
and reissued solely for OID purposes. In that event, all remaining interest payments on the Notes (including interest on deferred interest)
would be treated as OID, which U.S. Holders would be required to accrue and include in taxable income, without regard to such U.S. Holders’
regular method of accounting for U.S. federal income tax purposes. The amount of OID includible in such U.S. Holders’ taxable income
would be determined on the basis of a constant yield method over the remaining term of the Notes, and the actual receipt of future payments
of stated interest on the Notes would no longer be separately reported as taxable income. The total amount of OID that would accrue during
the deferral period would be approximately