Capital and Surplus Clause Samples
The 'Capital and Surplus' clause defines the minimum financial thresholds an entity, typically an insurer or financial institution, must maintain to be eligible under the agreement. This clause specifies that the party must have a certain amount of capital (invested funds) and surplus (excess of assets over liabilities), often referencing regulatory requirements or specific monetary amounts. For example, an insurance company may be required to maintain a minimum surplus to ensure it can meet policyholder obligations. The core function of this clause is to ensure the financial stability and solvency of the party, thereby protecting the other party from the risk of default or inability to perform contractual obligations.
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Capital and Surplus. MetLife agrees that it shall cause Beneficiary to have ------------------- at all times during the term of this Agreement the greater of:
(a) A capital and surplus of $10 million; or
(b) the amount of capital and surplus as shall be necessary to maintain a total adjusted capital of Beneficiary at a level not less than 150% of the company action level RBC of Beneficiary. For purposes of this Paragraph 1, "total adjusted capital" and "company action level RBC" shall be as defined in the Risk-Based Capital (RBC) for Insurers Model Act adopted by the National Association of Insurance Commissioners."
Capital and Surplus. The Corporation agrees that the capital of the Corporation (as such term is used in Section 154 of the General Corporation Law of Delaware) in respect of the Common Stock issued pursuant to this Agreement will be equal to the aggregate par value of such shares. The Corporation further agrees that, except as contemplated herein, it will not increase the capital of the Corporation with respect to any shares of the Corporation's capital stock at any time on or after the date of this Agreement.
Capital and Surplus. Subject to the provisions of these Articles, the Memorandum (which includes the Preemptive Rights) and any resolution of members, the unissued shares of the Company shall be at the disposal of the Board of Directors who may, without limiting or affecting any rights previously conferred on the holders of any existing shares or class or series of shares offer, allot, grant options over or otherwise dispose of shares to such persons, at such times and upon such terms and conditions as the Company may by resolution of directors determine.
Capital and Surplus. AARe agrees that it shall cause, at all times during the term of this Agreement, AAIA to have and maintain minimum capital and surplus in an amount sufficient to satisfy the insurance laws of the State of New Jersey as of the Effective Date. AARe agrees that its undertaking provided herein shall be an absolute, unconditional and continuing obligation during the term of this Agreement. AARe and AAIA shall notify the Iowa Insurance Division anytime AARe is required to make a capital contribution to AAIA in accordance with the terms and conditions of this Section 1. 2.
Capital and Surplus. The capital and surplus of the Company, as provided in Section 1.2, shall consist only of Securities on Deposit and cash or investments in debt obligations of the United States government or any agency or instrumentality thereof that have maturities of six (6) months or less.
Capital and Surplus. 15 6.6 Indebtedness . . . . . . . . . . . . . . . . . . . 15 6.7
Capital and Surplus. (a) The Company shall not permit the Statutory Capital and Surplus of Universal and its Subsidiaries to be less than Six Million Five Hundred Thousand and No/100 Dollars ($6,500,000) on any date.
(b) The Company shall not permit the sum of its cash or cash equivalents plus Adjusted Statutory Capital and Surplus of Universal to be less than Fifteen Million and No/100 Dollars ($15,000,000) on any date.
Capital and Surplus. The Statutory Capital and Surplus of the Company shall satisfy the requirements as provided in Section 1.2(b).
Capital and Surplus. MetLife agrees that it shall cause General American to have at all times during the term of this Agreement the greater of:
(a) A minimum capital and surplus of $10 million; or
(b) the amount of capital and surplus as shall be necessary to maintain a total adjusted capital of General American at a level not less than 250% of the company action level RBC (or 500% of the authorized control level RBC) of General American. For purposes of this Paragraph 1(b), "total adjusted capital", "company action level RBC" and "authorized control level RBC" shall be as defined in the Risk-Based Capital (RBC) for Insurers Model Act adopted by the National Association of Insurance Commissioners.
Capital and Surplus. TIAA agrees that it shall cause T-C Life to have at all times during the term of this Agreement the greater of:
(a) a minimum capital and surplus of $250 million; or
(b) the amount of capital and surplus as shall be necessary to maintain the capital and surplus of T-C Life at a level not less than 150% of the NAIC Risk Based Capitalization Model, or such other amount as necessary to maintain T-C Life’s rating that is the same as, or better than TlAA’s rating from ▇▇▇▇▇’▇ Investors Service, S&P Global Ratings, Fitch Credit Ratings, Inc., and A.M. Best (“the rating agencies”).