FUNDING OF RESERVES. (This Article is only applicable if the Reinsurer cannot qualify for credit by each governmental authority having jurisdiction over the Company's reserves.) As regards Policies issued by the Company coming within the scope of this Contract, the Company agrees that, when it files with the Insurance Department or sets up on its books reserves for losses (including Loss and Loss Expense paid by the Company but not recovered from the Reinsurer, Loss and Loss Expense reported and outstanding, and an allowance for Incurred But Not Reported Losses and Loss Expenses as determined by the Company) covered hereunder and/or unearned premium, which it is required by law to set up, it shall forward to the Reinsurer a statement showing the proportion of such reserves applicable to it. The Reinsurer hereby agrees that it shall apply for and secure delivery to the Company of a clean, irrevocable, unconditional Letter of Credit, dated on or before December 31 of the year in which the request is made, issued by a member of the Federal Reserve System or any bank approved for use by the NAIC Securities Valuation Office, and containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company's reserves in an amount equal to the Reinsurer's proportion of reserves as shown in the statement prepared by the Company. The Letter of Credit shall be issued for a period of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days prior to any expiration date the issuing bank notifies the Company by registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. An issuing bank, not a member of the Federal Reserve System or not chartered in the state of domicile of the Company, shall provide 60 days notice to the Company prior to any expiration in the event of nonextension. Notwithstanding any other provisions of this Contract, the Company or its court-appointed successor in interest may draw upon such credit at any time without diminution because of the insolvency of the Company or of any Reinsurer for one or more of the following purposes only:
A. To reimburse the Company for the Reinsurer's share of unearned premium on Policies reinsured hereunder on account of cancellations of such policies.
B. To pay the Reinsurer's share or to reimburse the Company for the Reinsurer's share of any Loss reinsured by th...
FUNDING OF RESERVES. It is Also Agreed that as respects the above Subscribing Reinsurer in the attached Contract, the following shall be added to the Contract:
FUNDING OF RESERVES. (a) Pursuant to Section 6.3 of the Loan Agreement, on the date hereof, the Closing Date Borrowers shall deposit with Central Account Bank $3,471,849 for deposit in the Impositions and Insurance Reserve as required in connection with the Addition of the Additional Borrower Sites hereunder, and has delivered to Lender an Officer’s Certificate setting forth in reasonable detail the calculation of the forgoing.
(b) Pursuant to Section 6.2 of the Loan Agreement, on the date hereof, the Closing Date Borrowers shall deposit with Central Account Bank $651,783 for deposit in the Advance Rents Reserve Sub-Account in connection with the Addition of the Additional Borrower Sites hereunder.
(c) The Lender shall designate a Sub-Account of the Central Account to be the “2013 Loan Increase Reserve Account”. On the date hereof, the Closing Date Borrowers shall deposit an amount equal to the amount of interest that will accrue on the 2013-1 Components and the 2013-2C Component from the date hereof to but excluding the Distribution Date in May 2013 (such amount, the “Closing Date Loan Increase Reserve”). The Closing Date Loan Increase Reserve shall be a Reserve under the Loan Agreement, and shall be applied by the Lender on the Due Date in May 2013 to the payment of such interest.
(d) The deposits into the Reserves described in clauses (a), (b) and (c) above shall occur by deduction from the amount of the Fifth Mortgage Loan Increase and the Sixth Mortgage Loan Increase disbursed to the Closing Date Borrowers pursuant to Section 3.02 hereof on the date hereof. Notwithstanding such deductions, the Sixth Mortgage Loan Increase contemplated hereby shall be deemed for all purposes to be fully disbursed.
FUNDING OF RESERVES. (a) With respect to the Liquidating Trust Expense Reserve, the amount of cash deposited into such reserve shall be equal to the amount of cash necessary to fund the expenses expected to be incurred by the Liquidating Trust as determined, in the Liquidating Trustee’s discretion with the approval of the Liquidating Trust Advisory Board.
(b) With respect to the Disputed Administrative, Priority Tax, Priority Non-Tax and Secured Claims Reserve, the Disputed General Unsecured Claims Reserve and the Disputed Noteholders’ Securities Claims Reserve, the amount of cash deposited into each of the foregoing reserves shall be equal to the percentage of cash or other distributable property that Holders of Disputed Claims in each reserve would be entitled under the Plan if such Disputed Claims were Allowed Claims in the amount of such Disputed Claim or such lesser amount as authorized in Article 7.2(c) of the Plan and Article 6.2(c) hereof. To the extent that the Liquidating Trustee determines, in his discretion, to establish one or more reserves for Shareholders’ Securities Claims or Equity Interests, such reserves would be similarly funded.
(c) For the purposes of effectuating the provisions of Article VII of the Plan and Article VI hereof and the Distributions to Holders of Allowed Claims, the Liquidating Trustee may, at any time and regardless of whether an objection to a Disputed Claim has been brought, request that the Bankruptcy Court estimate, set, fix, or liquidate the amount of such Disputed Claims pursuant to section 502(c) of the Bankruptcy Code, in which event the amounts so estimated, fixed, or liquidated shall be deemed the Allowed amounts of such Claims for purposes of Distribution under the Plan and establishment of the necessary Reserve. In lieu of estimating, fixing or liquidating the amount of any Disputed Claims or Disputed Equity Interests, the Bankruptcy Court may determine the amount to be reserved for such Disputed Claims or Disputed Equity Interests (singularly or in the aggregate), or such amount may be fixed by an agreement in writing by and between the Liquidating Trustee and the Holder of such Disputed Claims or Disputed Equity Interests. The amount at which a Disputed Claim or Disputed Equity Interest is fixed based upon an estimation or reserve established by the Bankruptcy Court under this Article 6.2(c) shall be the cap on the amount the Holder of such Claim or Equity Interest may recover on account of such Claim or Equity Interest unde...
FUNDING OF RESERVES shall read as follows: The Reinsurer agrees to fund its share of the Reinsured’s ceded unearned premium (including, but not limited to, the unearned portion of any deposit premium installment as calculated by the Reinsured) and outstanding loss and Loss Adjustment Expense reserves (including all case reserves plus any reasonable amount estimated to be unreported from known Loss Occurrences) by:
FUNDING OF RESERVES. Currency. Taxes.
FUNDING OF RESERVES. (This Article does not apply to a Reinsurer authorized in both the United States and Canada. This Article applies only to a Reinsurer who does not qualify for credit by Canadian Insurance Authorities and/or United States governmental authorities having jurisdiction over the Company’s loss reserves. If the Reinsurer is authorized in the United States but not Canada, the United States funding requirements noted below shall not apply; likewise, if the Reinsurer is authorized in Canada but not the United States, the Canadian funding requirements noted below shall not apply.)
1. The Reinsurer shall provide collateral (“Collateral”) sufficient to permit both the Company, pursuant to Canadian requirements, and Continental Casualty Company (“CCC”), pursuant to Illinois requirements, to take credit for the reinsurance provided under this Reinsurance Agreement and to avoid any penalties. The Reinsurer recognizes that this may require the Reinsurer to provide collateral in an amount exceeding the Reinsurer’s liability to the Company under this Reinsurance Agreement. Surety Canada Quota Share Treaty Effective: January 1, 2011 Page 9 of 15
2. The required Collateral hereunder shall be both:
(a) at least such amount of collateral as is required to be vested in trust under the Office of the Superintendent of Financial Institutions Canada (“OSFI”) Reinsurance Collateral Trust in order to permit the Company to take full credit for the reinsurance herein under Canadian requirements; and
(b) at least the estimated amount needed to prevent a Schedule F penalty to CCC under Illinois requirements.
3. For purposes of Canadian requirements, the Reinsurer shall deliver to the Company, within thirty (30) calendar days of the effective date of this Reinsurance Agreement, a fully executed and funded reinsurance trust agreement in the form required by OSFI, in the amount determined in paragraph 2(a), for the purpose of securing the Reinsurer’s Obligations under this Reinsurance Agreement. “Reinsurer’s Obligations” shall mean unearned premium, known outstanding losses that have been reported to the Reinsurer and loss expense relating thereto, losses and loss expenses paid by the Canadian branch but not recovered from the Reinsurer, plus reserves for losses and loss expenses incurred but not reported. Such Collateral shall comply with all OSFI requirements, the requirements of this Article, and the guidelines for eligible assets.
FUNDING OF RESERVES. As regards policies issued by the Company coming within the scope of this Agreement, the Company agrees that when it shall file with the South Dakota Insurance Division or set up on its books reserves for unearned premium and losses covered hereunder which it shall be required by law to set up, it will forward to the Reinsurer a statement showing the proportion of such reserves which is applicable to the Reinsurer. The Reinsurer hereby agrees to fund such reserves in respect of unearned premium and known outstanding losses that have been reported to the Reinsurer and allocated loss expenses relating thereto (excluding reserves for losses incurred but not reported ("IBNR")), as shown in the statement prepared by the Company, by either funds withheld or cash advances deposited with a bank or trust company pursuant to the terms of a separate Trust Agreement. The Reinsurer shall have the option of determining the method of funding provided it is acceptable to the insurance regulatory authorities involved. Notwithstanding any other provision of this Agreement, the Company or its successors in interest may draw upon such reserve funding at any time without diminution because of the insolvency of the Company or of the Reinsurer for one or more of the following purposes only, unless otherwise provided for in a separate Trust Agreement:
FUNDING OF RESERVES. Funding of Reserves 5 Section 3.02 Deduction 6 Section 4.01 Addition of Additional Issuers 6 Section 4.02 Election 6 Section 4.03 Pledge 7 Section 4.04 Further Assurances 7
FUNDING OF RESERVES. (a) On the date hereof, the Issuers shall deposit with the Collection Account Bank $2,566,849 for deposit in the Impositions and Insurance Reserve Sub-Account.
(b) On the date hereof, the Issuers shall deposit with the Collection Account Bank $1,754,142 for deposit in the Advance Rents Reserve Sub-Account.
