Common use of RECAPTURE CHARGE Clause in Contracts

RECAPTURE CHARGE. The Recapture Charge shall be calculated recursively according to the following formula: (a) The Recapture Charge on the Effective Date of this Agreement shall be zero; (b) The Recapture Charge at the end of any Accounting Period shall equal the greater between zero and the Recapture Charge at the end of the prior Accounting Period plus (i) minus (ii) plus (iii), where: (i) equals interest on the Recapture Charge at the end of the Prior Accounting period for the number of days between the end of the prior Accounting Period and the end of the current Accounting Period calculated at an annualized rate equal to 7.00%; (ii) equals amounts payable by the Cedent to the Reinsurer according to Article VII, Paragraph 3(a); and (iii) equals amounts payable by the Reinsurer to the Cedent according to Article VII, Paragraphs 3(b)(i), (ii) and (iii).