Collateral; Remedy Clause Samples

Collateral; Remedy. (i) In the event that Cedent would be unable to take Credit For Reinsurance (a “Credit Event”), then Reinsurer, at its own expense, shall provide collateral to ensure Cedent’s ability to take Credit For Reinsurance (“Credit Collateral”) or otherwise provide an accommodation, either of which must be reasonably acceptable to Cedent and under Applicable Law of Cedent’s Domicile (the “Credit Laws”) to enable Cedent to take Credit For Reinsurance, in each case, no later than the earlier of: (i) thirty (30) calendar days from the occurrence of the Credit Event and (ii) the last day of the then current Accounting Period. Such Credit Collateral or accommodations may, at the Reinsurer’s option, take the form of: (A) a clean, unconditional, irrevocable and qualifying letter of credit at Reinsurer’s sole expense for Cedent’s benefit which complies with the Credit Laws for Cedent to take Credit For Reinsurance; (B) the establishment of a trust complying with Credit Laws to permit Cedent to take Credit For Reinsurance; (C) the provision of some other Credit Collateral acceptable under the Credit Laws; (D) the amendment of this Agreement to provide for the withholding of funds by Cedent and the transfer by Reinsurer of the appropriate amount of cash and/or assets (such asset selection subject to Cedent’s approval, not to be unreasonably withheld) with an aggregate fair market value at the time of transfer equal to the amount necessary for Cedent to take Credit For Reinsurance; (E) a novation, to be consented to by Cedent in its sole discretion, to another reinsurer that would enable Cedent to take Credit For Reinsurance under the Credit Laws; or (F) some other accommodation acceptable to Cedent in its sole discretion for it to be able to take Credit For Reinsurance under the Credit Laws. The remedy may be in the form of any one of the aforementioned alternatives, or, with the consent of Cedent (not to be unreasonably withheld), a combination of such alternatives, so long as Cedent is able to take Credit For Reinsurance. (ii) In the event that Reinsurer fails to satisfy its obligations in Section 4(b)(i) above and Cedent would not be able to take Credit for Reinsurance under the Credit Laws, Cedent may recapture, by delivery of a Cedent Recapture Notice, all of the reinsurance ceded hereunder. In lieu of a full recapture, Cedent may also recapture, by delivery of a Cedent Recapture Notice, a pro rata share of each Reinsured Policy such that, after giving effect to such r...