Funds Withheld Account Clause Samples

Funds Withheld Account. (a) Prior to the Initial Settlement Date, the Ceding Company shall establish a funds withheld account (the “Funds Withheld Account”) to secure the payment liability of the Reinsurer on the books and records of the Ceding Company, which shall consist of a custody account established by the Ceding Company with the Custodian. (b) The Funds Withheld Account and the assets maintained therein will be owned and maintained by the Ceding Company and will be used exclusively for the purposes set forth in this Agreement. The assets maintained in the Funds Withheld Account shall be invested by the Investment Manager and consist only of Permitted Assets, and the Permitted Assets shall be valued, for the purposes of this Agreement, according to their Statutory Carrying Value. (c) Notwithstanding any other provision hereof, assets held in the Funds Withheld Account may be withdrawn by the Ceding Company at any time and shall be utilized and applied by the Ceding Company or any of its successors in interest by operation of law, including any liquidator, rehabilitator, receiver or conservator of the Ceding Company, without diminution because of insolvency on the part of the Ceding Company or the Reinsurer, only in accordance with Section 7.03. (d) Determinations of statutory impairments of assets maintained in the Funds Withheld Account shall be made by the Ceding Company and shall be (i) based upon the statutory rules and guidelines and the impairment policy used by the Ceding Company and its auditors for purposes of calculating statutory impairments reflected in the Ceding Company’s statutory financial statements and (ii) subject to consultation between the Investment Manager, the Reinsurer and the Ceding Company. The Ceding Company shall promptly notify the Reinsurer in writing if the Ceding Company determines that any assets maintained in the Funds Withheld Account have become impaired for purposes of determining Statutory Carrying Value. Such notice shall describe any such assets, the reason for the impairment and the effect on Statutory Carrying Value of such assets. (e) The Ceding Company shall bear the administrative costs and expenses related to the establishment and maintenance of the Funds Withheld Account, including the fees of the Custodian to the extent relating to the Funds Withheld Account. (f) The performance of the assets maintained in the Funds Withheld Account, including of all investment income paid or accrued, investment gains or losses, defaults and/...

Funds Withheld Account. (a) From and after the Effective Time, the Cedant shall establish and maintain on its books and records a funds withheld account, which, from and after the Closing Date, shall consist of two (2) segregated custody accounts (collectively, the “Funds Withheld Account”) with The Bank of New York Mellon (the “Custodian”) (i) which shall (A) be clearly designated as a segregated funds withheld account on the books and records (and in the information systems) of the Cedant and (B) be separate and apart from the general and other accounts of the Cedant (ii) into which the Initial Funds Withheld Assets shall be deposited or, solely with respect to the Boxed Assets and the Transferred Notes, allocated on the Closing Date in accordance with Section 3.03(b). The assets held in or, with respect to the Boxed Assets and the Transferred Notes, allocated to, the Funds Withheld Account shall be invested in and consist only of Funds Withheld Permitted Investments and shall be valued, for the purposes of this Agreement, according to their Statutory Book Value. In accordance with Cedant SAP, the Cedant elects to cede to the Reinsurer all capital gains and losses in respect of the Initial Funds Withheld Assets from and after the Effective Time and any other assets held in or, with respect to the Boxed Assets and the Transferred Notes, allocated to, the Funds Withheld Account from and after the Closing Date. (b) The Cedant shall retain, maintain, control and own all assets in the Funds Withheld Account. The assets in the Funds Withheld Account shall be managed in accordance with the Funds Withheld Investment Guidelines by Apollo Insurance Solutions Group LP as initial investment manager to provide investment management services with respect to the assets maintained in or, with respect to the Boxed Assets and the Transferred Notes, allocated to, the Funds Withheld Account (the “Investment Manager”) appointed by the Cedant pursuant to an investment management agreement in the form attached as Exhibit E (the “Investment Management Agreement”). If the Cedant and the Reinsurer agree to any amendments, modifications or changes to the Funds Withheld Investment Guidelines, then the Cedant shall instruct the Investment Manager to comply with such amendments, modifications or changes in writing in accordance with the terms of the Investment Management Agreement. The Cedant shall not propose any additional limitations (including with respect to asset allocations) on the assets maintained ...

Funds Withheld Account. On (i) November 11, 2011, the Ceding Company transferred assets received from the Borrower into the Funds Withheld Account with a Book Value (as defined in the Reinsurance Agreement) equal to or greater than the Original Block Initial Funds Withheld Amount and (ii) the UILIC Closing Date, the Funds Withheld Balance was equal to or greater than $[****], and the Ceding Company recorded on its books and records and its statutory financial statements a payable to the Borrower in an amount equal to or greater than $[****].

Funds Withheld Account. (a) On the Effective Date, the Ceding Company and the Reinsurer shall enter into the Funds Withheld Trust Agreement to establish a funds withheld trust account (the “Funds Withheld Account”) under which Permitted Assets supporting the Funds Withheld Amount may be deposited (the “Funds Withheld Account Assets”). (b) The Ceding Company shall, no later than ten (10) Business Days prior to the end of each Quarterly Accounting Period, estimate (i) the aggregate Statutory Value of the Funds Withheld Account Assets (as reflected on the Ceding Company’s statutory financial statements prepared in accordance with SAP) and (ii) the Required Amount, in each case as of the end of such Quarterly Accounting Period, and shall provide such information in a written notice to the Reinsurer. If the Ceding Company and the Reinsurer agree to set the Funds Withheld Amount at an amount lower than the Required Amount at the end of such Quarterly Accounting Period, then the Funds Withheld Amount shall be such mutually agreed amount. If the Ceding Company and the Reinsurer do not agree on such a lower amount, the Funds Withheld Amount at the end of such Quarterly Accounting Period shall be an amount equal to the Required Amount as of such date. If the aggregate estimated Statutory Value of the Funds Withheld Account Assets is less than the Funds Withheld Amount as so determined or estimated, the Ceding Company shall transfer to the Funds Withheld Account cash or other Permitted Assets in an amount sufficient to increase the aggregate Statutory Value of the Funds Withheld Account Assets to an amount that equals or exceeds the Funds Withheld Amount as so determined or estimated as of the end of such Quarterly Accounting Period. (c) If the aggregate estimated Statutory Value of the Funds Withheld Account Assets exceeds the Funds Withheld Amount as so determined or estimated, the Ceding Company may withdraw from the Funds Withheld Account cash or other assets in an amount equal to such excess; provided, that, after any such withdrawal, the estimated aggregate Statutory Value of the remaining Funds Withheld Account Assets equals or exceeds the Funds Withheld Amount as so determined or estimated as of the end of such Quarterly Accounting Period.

Funds Withheld Account. (a) Pursuant to the Reinsurance Contract, PMA is obligated to maintain a funds withheld account (the "FUNDS WITHHELD ACCOUNT") for the benefit of Retrocedant for each underwriting year for which coverage under the Reinsurance Contract is in place, until the commutation of, the final loss settlement under or the termination of the Reinsurance Contract. Pursuant to this Agreement, Retrocedant shall maintain a notional funds withheld account ("NOTIONAL ACCOUNT") for the underwriting year January 1, 2002 through December 31, 2002. "PRIOR UNDERWRITING YEARS" shall mean all underwriting years between 1986 and 2001.

Funds Withheld Account. The Ceding Company shall have transferred assets received from the Borrower into the Funds Withheld Account with a Book Value (as defined in the Reinsurance Agreement) equal to or greater than the Initial Funds Withheld Amount.

Funds Withheld Account. On the (i) Prior Closing Date, the Ceding Company shall have transferred assets received from the Borrower into the Funds Withheld Account with a Book Value (as defined in the Reinsurance Agreement) equal to or greater than the Original Block Initial Funds Withheld Amount and (ii) Amendment Closing Date, the Funds Withheld Balance shall be equal to or greater than $[****], and the Ceding Company shall have recorded on its books and records and its statutory financial statements a payable to the Borrower in an amount equal to or greater than $[****].

Funds Withheld Account. The Funds Withheld Account shall be established by the Ceding Company, subject to and in accordance with the terms of the Reinsurance Agreement.

Funds Withheld Account. (a) Pursuant to the Reinsurance Contract, TRC is obligated to maintain a funds withheld account (the "FUNDS WITHHELD ACCOUNT") for the benefit of Retrocedant until the commutation of, the final loss settlement under or the termination of] the Reinsurance Contract. Pursuant to this Agreement, Retrocedant shall maintain a notional funds withheld account ("NOTIONAL ACCOUNT"). The initial balance in the Notional Account shall equal the balance of the Funds Withheld Account as of the Effective Date plus an additional [$775,000] The balance of Notional Account shall never be less than zero. (b) Pursuant to the Reinsurance Contract, losses payable by Retrocedant will be offset by funds held in the Funds Withheld Account and the balance of the Funds Withheld Account reduced accordingly. The balance in the Notional shall first be applied to ultimate losses corresponding to losses relating to accident years 2001 and prior before being applied to losses relating to the 2002 accident year.