Common use of Policy Proceeds Clause in Contracts

Policy Proceeds. Subject to the provisions of Section 8, upon the death of the Insured, the proceeds of the Policy shall be divided in the following manner: (a) The Insured’s beneficiary(ies) designated in accordance with Section 3 above shall be entitled to receive an amount equal to the lesser of (i) the Death Benefit, determined in accordance with Exhibit A hereto, or (ii) one hundred percent (100%) of the difference between the total death proceeds payable under the Policy and the cash surrender value of the Policy, as determined in accordance with Section 7 below (such difference in the total death proceeds and the cash surrender value of the policy is defined as the “net amount at-risk.”). (b) The Bank shall be entitled to any death proceeds remaining payable under the Policy after payment to the Insured’s beneficiaries pursuant to Section 6(a) above. (c) The Bank and the Insured’s beneficiaries shall share in any interest due and payable on the death proceeds of the Policy on a pro rata basis, based on the amount of death proceeds due each party, excluding any such interest.

Policy Proceeds. Subject to the provisions of Section 8, upon the death of the Insured, the death proceeds of the Policy Policies shall be divided in the following manner: (a) The Insured’s beneficiary(ies) designated in accordance with Section 3 above shall be entitled to receive an amount equal to the lesser of (i) the Death Benefit, determined Benefit (as defined in accordance with Exhibit A B hereto, ) or (ii) one hundred percent (100%) of the difference between the total death proceeds payable under the Policy Policies and the cash surrender value “Cash Surrender Value of the Policy, Policies” (as determined defined in accordance with Section 7 below (below); such difference in the total death proceeds and the cash surrender value Cash Surrender Value of the policy Policies is defined as the “net amount at-riskNet at Risk Amount.”). (b) The Bank shall be entitled to any death proceeds remaining payable under the Policy Policies remaining after payment to the Insured’s beneficiaries pursuant to beneficiary(ies) under Section 6(a) above. (c) The Bank and the Insured’s beneficiaries beneficiary(ies) shall share in any interest due and payable on the death proceeds of the Policy Policies on a pro rata basis, basis based on upon the amount of death proceeds due each partyperson divided by the total amount of proceeds, excluding any such interest.