Interim Payment Percentage and Equalizing Payments Sample Clauses

Interim Payment Percentage and Equalizing Payments. After the Effective Date of the First Amended Plan, as described above, the Rehabilitator increased the portion of Permitted Policy Claims to be paid in cash from 25% to 45% (the “Interim Payment Percentage”) effective July 21, 2014. Accordingly, on and after July 21, 2014, (i) holders of Permitted Policy Claims receive Cash Payments equal to 45% of their claims, and (ii) the Segregated Account records Deferred Amounts on its books in favor of the respective holders in an amount equal to 55% of such claims, which accretes in accordance with the Payment Guidelines at an effective annual rate of 5.1%.4 In order to maintain parity among all policyholders, including those whose Permitted Policy Claims were accepted and paid prior to July 21, 2014, a Deferred Payment (the “Equalizing Deferred Payment”) was made on December 4 There are certain limited situations involving under-collateralized obligations where Deferred Amounts may not accrete at an effective annual rate 5.1%, as set forth in more detail in the First Amended Plan. The Rehabilitator provided notice of the Equalizing Deferred Payment and the increase in Interim Payment Percentage, as required by the Plan, on June 20, 2014. With the Rehabilitator’s permission, the proportionate Surplus Note redemption payments required by the First Amended Plan and the Bank Settlement Agreement to be made in conjunction with any Deferred Payment were made on November 20, 2014, rather than on December 22, 2014 when the Equalizing Deferred Payment was made. This early payment date for Surplus Notes resulted in interest savings to AAC that benefit all policyholders, and facilitated the orderly processing and disbursement of all payments to policyholders.