Common use of Foreign Account Tax Compliance Act (FATCA) Clause in Contracts

Foreign Account Tax Compliance Act (FATCA). A. Each Reinsurer hereby acknowledges the requirements of Sections 1471-1474 US Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder (“FATCA”) and the obligation of each of them to provide to the Intermediary a valid Internal Revenue Service (“IRS”) Form X0-XXX-X, X-0 or other documentation meeting the requirements of the FATCA regulations to establish they are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”). B. Furthermore: 1. If a Reinsurer becomes non-compliant with FATCA during the Contract period or has not provided the Intermediary with the Required Documentation fourteen (14) days prior to any reinsurance premium due date, the Withholding Agent (as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)) shall withhold thirty percent (30%) of the reinsurance premium (to the extent all or a portion of that reinsurance premium is subject to withholding pursuant to FATCA) due to that Reinsurer under this Contract on that reinsurance premium due date and shall promptly notify that Reinsurer via the Intermediary. 2. The withholding of reinsurance premium by virtue of 1. above shall not be, and shall not be treated by the Reinsurer as a breach of any reinsurance premium payment condition, warranty or other clause whether or not entitling the Reinsurer to cancel, terminate or restrict this Contract, refuse, restrict or delay payment of any claim or invoke any interest, penalty or other late payment provision. The Reinsurer shall be liable under this Contract as if no such withholding had been made. 3. The Reinsurer shall not recoup sums withheld under 1. above by deducting equivalent sums from any payments due to the Company or by set off against any other sums owed by the Reinsurer and any general or contractual right of set-off enjoyed by the Reinsurer is hereby varied and qualified to that extent. 4. Where reinsurance premium is withheld in error, has not yet been paid to the IRS and the underwriter has been paid only the net reinsurance premium following such withholding, the Intermediary will cooperate with the Reinsurer to process the requisite refund.

Foreign Account Tax Compliance Act (FATCA). A. Each (a) As a condition precedent to the payment of amounts due to Reinsurer hereby acknowledges under the requirements terms of Sections 1471this Agreement, Reinsurer agrees to provide Ceding Company in a timely manner with a valid and properly completed and signed form W-8BEN, W-8BEN-1474 US E, or W-9, as applicable, and/or any other documentation reasonably requested by Ceding Company or otherwise required by U.S. law, including but not limited to the U.S. Internal Revenue Code of 1986, as amended, and the Treasury regulations and other guidance issued from time to time thereunder (“FATCAIRC”) and the obligation related U.S. Treasury regulations, for compliance with Chapters, 3, 4, and 61 of each of them the IRC and the related regulations. To the extent that any payment to provide Reinsurer under this Agreement (including but not limited to the Intermediary a valid Internal Revenue Service (“IRS”reinsurance premium) Form X0-XXX-X, X-0 or other documentation meeting the requirements of the FATCA regulations to establish they are not subject to any withholding requirement pursuant to FATCA (the “Required Documentation”). B. Furthermore: 1. If a Reinsurer becomes non-compliant with FATCA during the Contract period or has not provided the Intermediary with the Required Documentation fourteen (14) days prior to any reinsurance premium due date, the Withholding Agent (as defined in U.S. Treasury Regulation Section 1.1471-1(b)(147)) shall withhold thirty percent (30%) of the reinsurance premium (to the extent all or a portion of that reinsurance premium is subject to the deduction and withholding of taxes or is otherwise required to be withheld, in whole or in part, pursuant to FATCA) the IRC and the related regulations (a “Tax Withholding”), Reinsurer acknowledges and agrees that such Tax Withholding shall be allowed with respect to any such payments under this Agreement and shall be calculated based on the gross payment amount due to that Reinsurer without reduction for expense allowances or other offsets such as claims reimbursements. Said Tax Withholding on behalf of Ceding Company shall not diminish or otherwise affect Reinsurer’s liability for the reinsured obligations under this Contract on that reinsurance premium due date Agreement, and Ceding Company shall promptly notify that not be responsible for or bear any additional costs related to such loss of income to Reinsurer via as a result of Reinsurer’s non-compliance with the IntermediaryIRC and the related regulations. 2. The withholding (b) In the event of any return of reinsurance premium by virtue of 1. above shall not bebecoming due hereunder, the return premium will be determined and shall not be treated by the Reinsurer paid in full to Ceding Company without regard to any amounts previously deducted or withheld as a breach of Tax Withholding under this section. In the event Ceding Company or its agent recovers any such prior Tax Withholdings with respect to the returned reinsurance premium payment conditionfrom the United States Government, warranty or other clause whether or not entitling the Reinsurer to cancel, terminate or restrict this Contract, refuse, restrict or delay payment of any claim or invoke any interest, penalty or other late payment provision. The Reinsurer shall be liable under this Contract as if no such withholding had been made. 3. The Reinsurer shall not recoup sums withheld under 1. above by deducting equivalent sums from any payments due to the Ceding Company or by set off against any other sums owed by the its agent will reimburse Reinsurer and any general or contractual right of set-off enjoyed by the Reinsurer is hereby varied and qualified to that extentfor such recovered prior Tax Withholding amounts. 4. Where reinsurance premium is withheld in error, has not yet been paid to the IRS and the underwriter has been paid only the net reinsurance premium following such withholding, the Intermediary will cooperate with the Reinsurer to process the requisite refund.