Common use of Eligible Assets Clause in Contracts

Eligible Assets. The assets held in the Trust Account shall be valued at their Statutory Book Value as of the date as of which such assets are required to be valued. The assets that may be held in the Trust Account shall consist of cash and/or investments consistent with the requirements for authorized investments and admitted assets in the Ceding Company’s state of domicile and the Reinsurer’s state of domicile; provided, that (x) each such investment that is a security is issued by an institution that is not the Reinsurer, the Ceding Company or an Affiliate of either Party and (y) such investments comply with the Investment Guidelines; provided, further, that, following and during the continuation of a Recapture Event, in addition to complying with the Investment Guidelines, such investments shall also meet all requirements under the Ceding Company state of domicile’s insurance law and regulations with respect to providing Reserve Credit to the Ceding Company (the assets meeting the requirements of this sentence being the “Eligible Assets”). From time to time, subject to Section 4.7, the Reinsurer may direct the Trustee to substitute assets held in the Trust Account, provided that (i) at the time of such substitution, the withdrawn assets are replaced with other Eligible Assets having a Statutory Book Value at least equal to the Statutory Book Value of the assets withdrawn, and (ii) the Market-to-Book Requirement is satisfied; provided that for purposes of clause (ii), during the period when the Hedge Account Control Agreements are in effect, in determining the Market-toBook Ratio, the Fair Market Value of Eligible Assets in the Trust Account shall include the Hedging Assets Value, and subject to Section 4.11(e) the Ceding Company will cooperate with the Reinsurer in good faith on any substitution or disposition of any Eligible Asset risks which are hedged under any Hedging Asset.

Eligible Assets. The Subject to Section 4.6, the assets held in the Trust Account shall be valued at their Statutory Book Value as of the date as of which such assets are required to be valued. The assets that may be held in the Trust Account shall consist of cash and/or investments (including Commercial Mortgage Loans) consistent with the requirements for authorized investments and admitted assets in the Ceding CompanyReinsurer’s state of domicile and that meet the Reinsurer’s state requirements for the composition of domicilecollateral stipulated in NAIC Accounting Practices and Procedures Manual Appendix A-785, Credit for Reinsurance, as amended from time to time, including paragraph 18 thereof; provided, that (xi) each such investment that is a security is issued by an institution that is not the Reinsurer, the Ceding Company or an Affiliate of either Party and (yii) such investments comply with the Investment Guidelines; provided, further, that, that following and during the continuation of a Recapture Triggering Event, in addition to complying with the Investment Guidelines, such investments shall also meet all requirements under the Ceding Company state of domicile’s Domiciliary State insurance law and regulations with respect to providing Reserve Credit to the Ceding Company Company, including, for the avoidance of doubt, any durational limits therein (the assets assets, other than Commercial Mortgage Loans pledged to the Trustee, meeting the requirements of this sentence being the “Eligible Assets”). The Parties agree that Eligible Assets shall be deposited into the Trust Account and that, prior to a Triggering Event, Commercial Mortgage Loans shall be pledged to the Trustee by the Reinsurer, in each case to be held by the Trustee in the Trust Account. From time to time, subject to Section 4.74.6, the Reinsurer may direct the Trustee to substitute assets held in the Trust Account; provided, provided that (i) at the time of such substitution, the withdrawn assets are replaced with other Eligible Assets or Commercial Mortgage Loans having a Statutory Book Value at least equal to the Statutory Book Value of the assets withdrawn, and (ii) . The Trustee shall have no responsibility whatsoever to determine the Market-to-Book Requirement is satisfied; provided value of such substituted assets or that for purposes of clause (ii), during the period when the Hedge Account Control Agreements are in effect, in determining the Market-toBook Ratio, the Fair Market Value of such substituted assets constitute Eligible Assets in the Trust Account shall include the Hedging Assets Value, and subject to Section 4.11(e) the Ceding Company will cooperate with the Reinsurer in good faith on any substitution or disposition of any Eligible Asset risks which are hedged under any Hedging Asseteligible Commercial Mortgage Loans.

Eligible Assets. The assets held in the Trust Account shall be valued at their Statutory Book Value as of the date as of which such assets are required to be valued. The assets that may be held in the Trust Account shall consist of cash and/or or investments of the type consistent with the requirements for authorized investments and admitted assets in under the insurance laws of the Ceding Company’s state of domicile and the Reinsurer’s state of domicileCompany Domiciliary State; provided, that during the continuation of a Reserve Credit Triggering Event such assets shall consist only of cash (xUnited States legal tender), certificates of deposit (issued by a United States bank and payable in United States legal tender), and other assets that qualify as investments of the types specified in paragraphs (1), (2), (3), (8), or (10) of subsection (a) of Section 1404 of the New York Insurance Law or any successor thereto (assets meeting the requirements of this proviso and the requirement in clause (a) below, “Regulation 114 Assets”); provided, further, that at all times, (a) each such investment that is a security is issued by an institution that is not the Reinsurerparent, subsidiary or Affiliate of either the Reinsurer or the Ceding Company or an Affiliate of either Party and (yb) such investments comply with the Investment GuidelinesGuidelines set forth in Schedule B; provided, further, that, following and during the continuation of a Recapture Event, in addition to complying with the Investment Guidelines, such investments shall also meet all requirements under the Ceding Company state of domicile’s insurance law and regulations with respect to providing Reserve Credit to the Ceding Company (the assets meeting the requirements of this sentence being the “Eligible Assets”). From time to time, subject to Section 4.7, the Reinsurer may direct the Trustee to substitute assets held in the Trust Account, provided that (i) at the time of such substitution, the withdrawn assets are replaced with other Eligible Assets having a Statutory Book Value at least equal to the Statutory Book Value of the assets withdrawn, and (ii) the Market-to-Book Requirement is satisfied; provided that for purposes of clause (ii), during the period when the Hedge Account Control Agreements are in effect, in determining the Market-toBook Ratio, the Fair Market Value of Eligible Assets Any Restricted Asset in the Trust Account shall include the Hedging Assets Value, and also be subject to Section 4.11(e) the limitations set forth in the Trust Agreement. No later than eight (8) Business Days following the end of each Monthly Accounting Period, the Reinsurer shall provide to the Ceding Company will cooperate with a monthly report listing each asset in the Trust Account and the Fair Market Value and Statutory Book Value of each such asset as of the end of the relevant Monthly Accounting Period and certify that each such asset is an Eligible Asset. In addition, during the continuation of a Reserve Credit Triggering Event, each monthly asset listing shall indicate for each asset in the Trust Account whether or not such asset is a Regulation 114 Asset. The Parties acknowledge that the statutory financial statement credit for the reinsurance ceded to the Reinsurer under this Agreement in good faith on any substitution or disposition the Ceding Company’s Statutory Financial Statements in respect of any Eligible Asset risks which are hedged under any Hedging Assetthe assets in the Trust Account shall not exceed the aggregate Fair Market Value of the Regulation 114 Assets in the Trust Account.

Eligible Assets. The Subject to Section 4.6, the assets held in the Trust Account shall be valued at their Statutory Book Value as of the date as of which such assets are required to be valued. The assets that may be held in the Trust Account shall consist of cash and/or investments (including Commercial Mortgage Loans) consistent with the requirements for authorized investments and admitted assets in the Ceding CompanyReinsurer’s state of domicile and that meet the Reinsurer’s state requirements for the composition of domicilecollateral stipulated in New York Regulation 20; provided, that (xi) each such investment that is a security is issued by an institution that is not the Reinsurer, the Ceding Company or an Affiliate of either Party and (yii) such investments comply with the Investment Guidelines; provided, further, that, that following and during the continuation of a Recapture Triggering Event, in addition to complying with the Investment Guidelines, such investments shall also meet all requirements under the Ceding Company state of domicile’s Domiciliary State insurance law and regulations with respect to providing Reserve Credit to the Ceding Company Company, including, for the avoidance of doubt, any durational limits therein (the assets assets, other than Commercial Mortgage Loans pledged to the Trustee, meeting the requirements of this sentence being the “Eligible Assets”). The Parties agree that Eligible Assets shall be deposited into the Trust Account and that, prior to a Triggering Event, Commercial Mortgage Loans shall be pledged to the Trustee by the Reinsurer, in each case to be held by the Trustee in the Trust Account. From time to time, subject to Section 4.74.6, the Reinsurer may direct the Trustee to substitute assets held in the Trust Account; provided, provided that (i) at the time of such substitution, the withdrawn assets are replaced with other Eligible Assets or Commercial Mortgage Loans having a Statutory Book Value at least equal to the Statutory Book Value of the assets withdrawn, and (ii) . The Trustee shall have no responsibility whatsoever to determine the Market-to-Book Requirement is satisfied; provided value of such substituted assets or that for purposes of clause (ii), during the period when the Hedge Account Control Agreements are in effect, in determining the Market-toBook Ratio, the Fair Market Value of such substituted assets constitute Eligible Assets in the Trust Account shall include the Hedging Assets Value, and subject to Section 4.11(e) the Ceding Company will cooperate with the Reinsurer in good faith on any substitution or disposition of any Eligible Asset risks which are hedged under any Hedging Asseteligible Commercial Mortgage Loans.