Common use of Adjustment of Security and Withdrawals Clause in Contracts

Adjustment of Security and Withdrawals. The amount of security provided by the Reinsurer shall be adjusted following the end of each Accounting Period as provided herein. (a) If the aggregate Fair Market Value of the Eligible Assets held in the Trust Account at the end of any Accounting Period is less than the Required Balance, calculated based on the most recent Accounting Report, the Reinsurer shall, no later than five (5) calendar days following delivery of the Accounting Report provided pursuant to the terms hereof, transfer additional Eligible Assets to the Trust Account so that the aggregate Fair Market Value of the Eligible Assets held in the Trust Account is not less than the Required Balance. (b) If the aggregate Fair Market Value of the Eligible Assets in the Trust Account at the end of any Accounting Period exceeds one hundred and two percent (102%) of the Required Balance, then the Reinsurer shall have the right to seek approval (which shall not be unreasonably or arbitrarily withheld) from the Ceding Company to withdraw the excess. For the purposes of the foregoing sentence, in the event that a Recapture Triggering Event has occurred, the Parties acknowledge and agree that it shall not be unreasonable for the Ceding Company to withhold its consent to any such withdrawal of any amounts over one hundred and two percent (102%).

Adjustment of Security and Withdrawals. The Reinsurer shall maintain Eligible Assets in the SLDI Reserve Trust Account with an aggregate fair market value at least equal to the Required Balance. The amount of security provided by assets held in the Reinsurer SLDI Reserve Trust Account shall be adjusted following the end of each Accounting Period as provided hereincalendar quarter. (a) If the aggregate Fair Market Value fair market value of the Eligible Assets held in the SLDI Reserve Trust Account at the end of any Accounting Period calendar quarter is less than the Required Balance, calculated based on the most recent Accounting Report, the Reinsurer shall, no later than five fifteen (515) calendar days following delivery of the Accounting Report reserve report included in the quarterly report provided pursuant to the terms hereofAdministrative Services Agreement, transfer additional Eligible Assets to the SLDI Reserve Trust Account so that the aggregate Fair Market Value fair market value of the Eligible Assets held in the SLDI Reserve Trust Account is not less than the Required Balance. (b) If the aggregate Fair Market Value fair market value of the Eligible Assets in the SLDI Reserve Trust Account at the end of any Accounting Period calendar quarter exceeds one hundred and two percent (102%) % of the Required Balance, then the Reinsurer shall have the right to seek approval (which shall not be unreasonably or arbitrarily withheld) from the Ceding Company to withdraw the excess. For the purposes of the foregoing sentence, in the event that a Recapture Triggering Event has occurred, the Parties parties acknowledge and agree that it shall not be unreasonable for the Ceding Company to withhold its consent to any such withdrawal of any amounts over one hundred and two percent (102%)withdrawal.