First loss Clause Samples
The 'First loss' clause establishes that a specific party will bear the initial portion of any losses arising from a particular event or transaction, up to a predetermined amount. In practice, this means that if a loss occurs, the designated party is responsible for covering the first segment of the loss, such as the first $100,000, before any other parties or insurers are required to contribute. This clause is commonly used in insurance and lending agreements to allocate risk and incentivize careful behavior by ensuring that the party with the first loss exposure has a direct financial stake in minimizing potential losses.
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First loss. The Company covenants and agrees that it ---------- will not make any drawing under the Letter of Credit unless (and then only to the extent that) at the time of such drawing the aggregate amount then due from the Reinsurer with respect to the Coinsured Policies under the Coinsurance Agreement which the Reinsurer has failed to pay exceeds the sum of (i) $113,000,000 plus (ii) the aggregate unreimbursed amount of any prior drawings under the Letter of Credit.
First loss. In the event that the amount at risk in any one vessel, conveyance or location exceeds the limit applicable and the actual value has not been declared prior to attachment or prior to loss, accident or arrival, claims will be settled on a “first loss” basis up to the amount of the agreement limit.
First loss. If at any time any part of a Purchased Receivable falls within First Loss, the relevant Seller agrees promptly to notify the Bank. The Bank and the relevant Seller agree that the loss suffered by the Bank in respect of any part of a Purchased Receivable falling within First Loss will be a sum equal to the reduction in the Net Value arising as a result. At the Bank’s determination in its sole discretion and upon the Bank’s request, the relevant Seller undertakes to promptly on demand pay the amount of that reduction to the Bank, in discharge of the loss suffered by the Bank as a result of any part of a Purchased Receivable falling within First Loss.
First loss. The Customer must pay the first $150 (including GST) of any amount claimed from Eclipx under clause 18.2 to compensate Eclipx for its processing costs.
First loss. The Guarantee is payment of the first loss of the Guaranteed Loan after the Lender’s completion of the Default Procedures in this Agreement. Lender shall follow the Default Procedures in this Agreement and submit a Claim as set forth in Section 11 to obtain collection on a Guaranteed Loan.