Non-NAIC Approved Banks Clause Samples
The 'Non-NAIC Approved Banks' clause defines the treatment of banks that have not been approved by the National Association of Insurance Commissioners (NAIC) within the context of a contract or agreement. Typically, this clause outlines restrictions or additional requirements for using such banks as custodians, depositories, or counterparties in financial transactions involving insurance companies. For example, it may prohibit the use of non-NAIC approved banks for holding certain assets or require additional safeguards if such banks are used. The core function of this clause is to ensure that only banks meeting specific regulatory standards are involved, thereby reducing risk and promoting compliance with industry regulations.
Non-NAIC Approved Banks. If, on or at any time after the Closing Date, a Lender is not or ceases to be a NAIC Approved Bank, such Lender shall promptly notify the Administrative Agent and the Borrowers thereof and, upon the Borrowers’ request, (a) Bank of America will act as the Limited Fronting Lender for such Lender with respect to any Several Letters of Credit issued during the period that such Lender is a Non-NAIC Approved Bank (and/or as a Confirming Bank for such Lender with respect to any Several Letters of Credit issued prior to such Lender becoming an Non-NAIC Approved Bank), or (b) another Lender that is a NAIC Approved Bank may agree to act as the Limited Fronting Lender for such Lender with respect to any Several Letters of Credit issued during the period that such Lender is a Non-NAIC Approved Bank (and/or as a Confirming Bank for such Lender with respect to any Several Letters of Credit issued prior to such Lender becoming an Non-NAIC Approved Bank) upon such terms and conditions as such Non-NAIC Approved Bank and such other Lender may agree. If Bank of America or such other Lender, as applicable, becomes a Confirming Bank, it shall enter into a confirming bank agreement with such Non-NAIC Approved Bank upon such terms as the applicable parties may agree (and furnish a copy thereof to the Borrowers and the Administrative Agent). Each Lender (other than Bank of America) that agrees to act as a Limited Fronting Lender and/or Confirming Bank for any Non-NAIC Approved Bank shall promptly notify the Administrative Agent of such agreement and of any termination or expiration of such agreement.
Non-NAIC Approved Banks. If, at any time from and after the Closing Date, any Lender is not or ceases to be a NAIC Approved Bank, such Lender shall promptly notify the Company and the Administrative Agent thereof. Each Lender agrees to use commercially reasonable efforts, at all times from and after the Closing Date, (a) to be a NAIC Approved Bank or (b) if such Lender is not or ceases to be a NAIC Approved Bank, to agree with another Lender which is a NAIC Approved Bank, as provided in Section 3.8(c), that such NAIC Approved Bank shall (in its sole discretion) act as the Limited Fronting Lender for such Non-NAIC Approved Bank with respect to any Several Letters of Credit which are outstanding at the time such Lender becomes a Non-NAIC Approved Bank and/or are issued during the period that such Lender is a Non-NAIC Approved Bank.
Non-NAIC Approved Banks. If, at any time after the Effective Date, a Lender ceases to be a NAIC Approved Bank, such Lender shall promptly notify the Administrative Agent and the Borrower thereof. At any time after the Effective Date in the event any Lender shall qualify as a NAIC Approved Bank hereunder by reason of entering into an agreement as contemplated hereby with a Confirming Lender which is a NAIC Approved Bank and such Confirming Lender ceases to be a NAIC Approved Bank, such Lender and such Confirming Lender shall promptly notify the Administrative Agent and the Borrower thereof.