Common use of Other methods Clause in Contracts

Other methods. In respect to all risks other than Xxxxxx Act perform- ance and payment bonds running to the United States, which must be coin- sured or reinsured in accord with para- graph (a) or (b)(1) of this section re- spectively, the excess liability may otherwise be protected: (1) By the deposit with the company in pledge, or by conveyance to it in trust for its protection, of assets ad- mitted by the Treasury the current market value of which is at least equal to the liability in excess of its under- writing limitation, or (2) If such obligation was incurred on behalf of or on account of a fiduciary holding property in a trust capacity, by a joint control agreement which provides that the whole or a sufficient portion of the property so held may not be disposed of or pledged in any way without the consent of the insuring company. [34 FR 20188, Dec. 24, 1969, as amended at 40 FR 6499, Feb. 12, 1975; 41 FR 10605, Mar. 12, 1976; 42 FR 8637, Feb. 11, 1977; 43 FR 39089, Sept. 1, 1978; 79 FR 62000, Oct. 16, 2014]

Other methods. In respect to all risks other than Xxxxxx Act perform- ance and payment bonds running to the United States, which must be coin- sured or reinsured in accord with para- graph (a) or (b)(1) of this section re- spectively, the excess liability may otherwise be protected: (1) By the deposit with the company in pledge, or by conveyance to it in trust for its protection, of assets ad- mitted by the Treasury the current market value of which is at least equal to the liability in excess of its under- writing limitation, or (2) If such obligation was incurred on behalf of or on account of a fiduciary holding property in a trust capacity, by a joint control agreement which provides that the whole or a sufficient portion of the property so held may not be disposed of or pledged in any way without the consent of the insuring company. [34 FR 20188, Dec. 24, 1969, as amended at 40 FR 6499, Feb. 12, 1975; 41 FR 10605, Mar. 12, 1976; 42 FR 8637, Feb. 11, 1977; 43 FR 39089, Sept. 1, 1978; 79 FR 62000, Oct. 16, 2014]