Collateral in Trust. 2.1 In the event that the coinsured premium as of December 31, 2007 exceeds 10% of the Coinsurance Premium (as defined in Subsection (E)(2)), REINSURER shall establish a trust for the benefit of CEDENT and deposit in said trust collateral in an amount equal to the reserve liabilities of the CEDENT; said trust shall be adjusted quarterly to maintain collateral sufficient to equal all reserve liabilities. Collateral assets shall be cash, cash equivalents or securities of a quality equivalent to NAIC 1 or 2 rated securities.
Appears in 4 contracts
Samples: Coinsurance Agreement (Utg Inc), Coinsurance Agreement (Utg Inc), Coinsurance Agreement (Utg Inc)
