Common use of Application of Assets Clause in Contracts

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor to the Beneficiary under the Reinsurance Agreements not otherwise reimbursed to the Beneficiary by the Grantor. (ii) to reimburse the Beneficiary for the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor; (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this Agreement, to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the United States, in trust for the uses and purposes specified in this paragraph (a). (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (a) of this Section 3.

Application of Assets. (a) The Each Beneficiary hereby covenants to the Grantor that it shall withdraw Assets from the Trust Account, and use and apply any such withdrawn Assets, without diminution because of the insolvency of the such Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor to the Beneficiary under the Reinsurance Agreements not otherwise reimbursed to the Beneficiary by the Grantor. (ii) to reimburse the such Beneficiary for the Grantor's ’s share under the Reinsurance Agreement with such Beneficiary of any losses and allocated loss expenses paid or incurred by such Beneficiary, but not recovered from the Policy Liabilities and Ultimate Net Losses paid by Grantor pursuant to the terms of such Reinsurance Agreement, or for unearned premiums due to such Beneficiary and which has under the terms of such Reinsurance Agreement if not otherwise been paid by the Grantor; (iiiii) to reimburse pay the Beneficiary for Grantor any amounts held in the Grantor's share Trust Account that exceed 102% of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the GrantorObligations; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (viiii) where the a Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all of the Obligations have been liquidated or discharged ten days prior to the Termination Date (as hereinafter defined), to make payment to the Grantor of any amounts held in the Trust Account; and (iv) where a Beneficiary has received a Termination Notice pursuant to Section 10 of this Agreement and where all or any part of the Obligations remain unliquidated and undischarged ten days prior to the Termination Date, to withdraw amounts Assets equal to such the Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assetsaccount (the “Termination Account”), in the name of the Beneficiary, Beneficiaries in any bank or trust company organized in Qualified Fiduciary United States Financial Institution (as hereinafter defined), apart from the United StatesBeneficiaries’ other assets, in trust for the uses and purposes specified in subparagraphs (i) – (iii) of this paragraph (a)Section as may remain executory after such withdrawal and for any period after such Termination Date. The relative rights and obligations of the Grantor and the Beneficiaries under this Agreement shall apply to the Termination Account. The Beneficiaries shall pay interest in cash to the Grantor on the amount withdrawn, equal to the actual amount of interest, dividends and other income earned on the assets in the Termination Account. The Beneficiaries may at any time substitute or exchange any assets held in the Termination Account and invest or reinvest such assets, provided that the assets so substituted or exchanged and all reinvestment assets are in cash equivalents. (b) The Trustee In the event that Assets are withdrawn in excess of amounts due under Sections (a)(i) – (a)(iv) above, the Beneficiaries or the Grantor, as applicable, shall have no responsibility whatsoever promptly return to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (a) of this Section 3such excess Assets withdrawn.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor to the Beneficiary Grantor’s share under the Reinsurance Agreements Agreement regarding any losses and allocated loss adjustment expenses paid by the Beneficiary but not recovered from the Grantor (or any third party reinsurer), if not otherwise reimbursed to the Beneficiary paid by the Grantor.Grantor in accordance with the terms of the Reinsurance Agreement; (ii) to reimburse the Beneficiary for the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;pay Grantor pursuant to Section 2(g) or (h); or (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 11 of this AgreementAgreement and where the Grantor’s entire Obligations remain unliquidated and undischarged ten (10) days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified Fiduciary United StatesStates Financial Institution, apart from its other assets, in trust for the uses and purposes specified in clauses (i) and (ii) of this paragraph (a)Section as may remain executory after such withdrawal and for any period after such Termination Date. (b) The Trustee existence of the Trust Account, as security for the Obligations, shall have no responsibility whatsoever to determine that any not affect the Grantor’s liabilities under the Reinsurance Agreement, nor shall the Assets withdrawn from of the Trust Account pursuant to Section 2 of this Agreement will be used and applied in as an offset by the manner contemplated by paragraph (a) of this Section 3Grantor against any Obligations.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assetsassets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreements regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, and unearned premiums due to the Beneficiary under the Reinsurance Agreements if not otherwise reimbursed to the Beneficiary paid by the Grantor., or for other amounts due to the Beneficiary, if not otherwise paid by the Grantor in accordance with the terms of the Retrocession Agreements; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the trust fund that exceed 102% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (a). i) and (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aii) of this Section 3as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the trust fund" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii), (iv) For purposes of this subsection (a), all assets shall be valued at their current fair market value.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreement regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, or unearned premiums due to the Beneficiary under or for other amounts due to the Reinsurance Agreements Beneficiary, if not otherwise reimbursed to the Beneficiary paid by the Grantor.Grantor in accordance with the terms of the Retrocession Agreement; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the Trust Account that exceed 100% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as defined in Section 11 hereof), and (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defineddefined in Section 10 hereof) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as defined in Section 10 hereof), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized Qualified United States Financial Institution (as defined in the United StatesSection 11 hereof), apart from its other assets, in trust for the uses and purposes specified in subparagraphs (i) and (ii) of this paragraph Section as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (aiii), the phrase "the Trust Account" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii). (b) The Trustee In the event Assets are withdrawn and held by the Beneficiary prior to being applied pursuant to this Section 3, such Assets shall have no responsibility whatsoever be deposited in an interest bearing account to determine that any Assets withdrawn be held separate from the Trust Account pursuant Beneficiary's other assets and interest thereon shall accrue to Section 2 the benefit of this Agreement will be used and applied in the manner contemplated by paragraph Grantor. (ac) For purposes of this Section 3, all Assets shall be valued at their current fair market value.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor to the Beneficiary Grantor's share under the Reinsurance Agreements Agreement regarding any losses and allocated and commercially reasonable unallocated loss expenses paid by the Beneficiary but not recovered from the Grantor, or for unearned premiums due to the Beneficiary, if not otherwise reimbursed to the Beneficiary paid by the Grantor.Grantor in accordance with the terms of the Reinsurance Agreement; (ii) to reimburse the Beneficiary for the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;pay Grantor pursuant to Section 2(e) or (f); or (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 11 of this AgreementAgreement and where the Grantor's entire Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any United States bank or trust company organized in the United Statescompany, apart from its other assets, in trust for the uses and purposes specified in subparagraphs (i) and (ii) of this paragraph (a)Section as may remain executory after such withdrawal and for any period after such Termination Date. (b) The Trustee existence of the Trust Account, as security for the Obligations, shall have no responsibility whatsoever to determine that any not affect the Grantor's liabilities under the Reinsurance Agreement, nor shall the Assets withdrawn from of the Trust Account pursuant to Section 2 of this Agreement will be used and applied in as an offset by the manner contemplated by paragraph (a) of this Section 3Grantor against any Obligations to the Beneficiary.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreements regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, and unearned premiums due to the Beneficiary under the Reinsurance Agreements if not otherwise reimbursed to the Beneficiary paid by the Grantor., or for other amounts due to the Beneficiary, if not otherwise paid by the Grantor in accordance with the terms of the Retrocession Agreements; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the trust fund that exceed 102% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (a). i) and (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aii) of this Section 3as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the trust fund" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii), (iv) For purposes of this subsection (a), all Assets shall be valued at their current fair market value.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreements regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, and unearned premiums due to the Beneficiary under the Reinsurance Agreements if not otherwise reimbursed to the Beneficiary paid by the Grantor., or for other amounts due to the Beneficiary, if not otherwise paid by the Grantor, in accordance with the terms of the Retrocession Agreements; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the Trust Account that exceed 100% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iii) to reimburse except in the Beneficiary for event of a liquidation of the Grantor's share of premium and commission returned trust under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (ivSection 1(e) to fund an account with the Beneficiary in an amount at least equal to the deductionhereof, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (a). i) and (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aii) of this Section as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the Trust Account" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii), (iv) For purposes of this Section 3, all Assets shall be valued at their current fair market value.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreements regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, and unearned premiums due to the Beneficiary under the Reinsurance Agreements if not otherwise reimbursed to the Beneficiary paid by the Grantor., or for other amounts due to the Beneficiary, if not otherwise paid by the Grantor, in accordance with the terms of the Retrocession Agreements; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the Trust Account that exceed 100% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iii) to reimburse except in the Beneficiary for event of a liquidation of the Grantor's share of premium and commission returned trust under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (ivSection l(e) to fund an account with the Beneficiary in an amount at least equal to the deductionhereof, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (a). i) and (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aii) of this Section as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the Trust Account" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii), (iv) For purposes of this Section 3, all Assets shall be valued at their current fair market value.

Application of Assets. (a) The Each Beneficiary hereby covenants to the Grantor Grantors that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the such Beneficiary or the GrantorGrantors, for the following purposes only: (i) to pay or reimburse fund the Beneficiary for all Obligations of the Grantor to the Beneficiary under Loss Escrow Account(s) (as defined in the Reinsurance Agreements not otherwise reimbursed to the Beneficiary by the Grantor.Agreement); (ii) to reimburse the Beneficiary pay for the Grantor's Grantors’ share of the Policy Liabilities and Ultimate Net Losses Loss (as defined in the Reinsurance Agreement) not otherwise paid by the Beneficiary and which has not otherwise been paid by the GrantorGrantors when due; (iii) to reimburse pay the Beneficiary for Grantors any amounts held in the Grantor's share of premium and commission returned under policies reinsured under Trust Accounts that exceed the Minimum Funding Requirement (as defined in the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the GrantorAgreement); (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has Beneficiaries have received a Termination Notice (as hereinafter defined) pursuant to Section 10 11 of this AgreementAgreement and where the Grantors’ obligations under the Reinsurance Agreement remain unliquidated and undischarged ten (10) calendar days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements obligations and deposit such amounts in a separate accountaccounts, apart from its their other assets, in the name of the BeneficiaryBeneficiaries, in any bank or trust company organized in the United States, in trust for the uses and purposes specified in subparagraphs (ii) or (v) of this paragraph (a). For purposes of this subparagraph (iv), the phrase “the Trust Accounts” in subparagraph (v) of this paragraph (a) shall be deemed to read “the separate accounts” established pursuant to this subparagraph (iv); (v) to pay any other amounts due and payable (X) to the Beneficiaries or (Y) by the Grantors or otherwise permitted to be withdrawn from any Trust Account under the Reinsurance Agreement; and (vi) to transfer Assets held in a Trust Account to another Trust Account. (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account Accounts pursuant to Section 2 3 of this Agreement will be used and applied in the manner contemplated by paragraph (a) of this Section 34.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreements with the Beneficiary regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, and unearned premiums due to the Beneficiary under the Reinsurance Agreements if not otherwise reimbursed to the Beneficiary paid by the Grantor., or other amounts due to the Beneficiary, if not otherwise paid by the Grantor, in accordance with the terms of the Retrocession Agreements; (ii) to pay or reimburse the Beneficiary for any amounts paid by the Beneficiary under the Guarantee corresponding to the Grantor's share of under the Policy Liabilities Retrocession Agreements with St. Xxxx Re UK regarding any losses and Ultimate Net Losses allocated loss expenses paid by St. Xxxx Re UK but not recovered by Beneficiary or St. Xxxx Re UK from the Beneficiary Grantor, and which has unearned premiums due to St. Xxxx Re UK if not otherwise been paid by the Grantor, or for other amounts due to St. Xxxx Re UK, if not otherwise paid by the Grantor, in accordance with the terms of the Retrocession Agreements; (iii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the Trust Account that exceed 100% of the actual amount required to fund the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iv) to fund an account with except in the Beneficiary in an amount at least equal to event of a liquidation of the deductiontrust under Section l(e) hereof, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (ai). , (bii) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aiii) of this Section as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the Trust Account" in subparagraph (iii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iv), (v) For purposes of this Section 3, all Assets shall be valued at their current fair market value.

Application of Assets. (a) The Beneficiary hereby covenants to the Grantor that it shall use and apply any withdrawn Assets, without diminution because of the insolvency of the Beneficiary or the Grantor, for the following purposes only: (i) to pay or reimburse the Beneficiary for all Obligations of the Grantor Grantor's share under the Retrocession Agreement regarding any losses and allocated loss expenses paid by the Beneficiary but not recovered from the Grantor, or unearned premiums due to the Beneficiary under or for other amounts due to the Reinsurance Agreements Beneficiary, if not otherwise reimbursed to the Beneficiary paid by the Grantor.Grantor in accordance with the terms of the Retrocession Agreement; (ii) to reimburse make payment to the Beneficiary for Grantor of any amounts held in the Trust Account that exceed 102% of the actual amount required to fund the Grantor's share of the Policy Liabilities and Ultimate Net Losses paid by the Beneficiary and which has not otherwise been paid by the Grantor;entire Obligations (as hereinafter defined), and (iii) to reimburse the Beneficiary for the Grantor's share of premium and commission returned under policies reinsured under the Reinsurance Agreements on account of cancellation of such policies and which has not otherwise been paid by the Grantor; (iv) to fund an account with the Beneficiary in an amount at least equal to the deduction, for reinsurance ceded, from the Beneficiary's liabilities for amounts ceded under the Reinsurance Agreements. Such amount shall include, but not be limited to, amounts for reserves for claims and losses incurred, including losses incurred but not reported, loss adjustment expenses, and unearned premiums; and (v) to pay any other amounts the Beneficiary claims are due under the Reinsurance Agreements. (vi) where the Beneficiary has received a Termination Notice (as hereinafter defined) pursuant to Section 10 of this AgreementAgreement and where all or a portion of the Grantor's Obligations remain unliquidated and undischarged ten days prior to the Termination Date (as hereinafter defined), to withdraw amounts equal to such Obligations and any other amounts owed Beneficiary under the Reinsurance Agreements and deposit such amounts in a separate account, apart from its other assets, in the name of the Beneficiary, in any bank or trust company organized in the Qualified United StatesStates Financial Institution (as defined herein), apart from its other assets, in trust for the uses and purposes specified in this paragraph subparagraphs (a). i) and (b) The Trustee shall have no responsibility whatsoever to determine that any Assets withdrawn from the Trust Account pursuant to Section 2 of this Agreement will be used and applied in the manner contemplated by paragraph (aii) of this Section 3as may remain executory after such withdrawal and for any period after such Termination Date. For the purposes of this subparagraph (iii), the phrase "the Trust Account" in subparagraph (ii) of this Section shall be deemed to read "the separate account" established pursuant to this subparagraph (iii), (iv) For purposes of this subsection (a), all Assets shall be valued at their current fair market value.