Common use of FIRST LOSS TRANCHE Clause in Contracts

FIRST LOSS TRANCHE. The Assuming Bank has submitted to the Receiver an asset premium (discount) bid of ($299,400,000.00) and a Deposit premium bid of 0%. The Deposit premium bid will be applied to the total of all Assumed Deposits except for brokered, CDARS, and any market place or similar subscription services Deposits. The First Loss Tranche shall be determined by adding (i) the asset premium (discount) bid, (ii) the Deposit premium bid, and (iii) the Equity Adjustment. If the First Loss Tranche is a positive number, then this is the Losses on Single Family Shared-Loss Loans and Net Charge-offs on Shared Loss Assets that the Assuming Bank will incur before loss-sharing commences under Exhibits 4.15A and 4.15B. If the First Loss Tranche is a negative number, the Corporation shall pay such amount by wire transfer to the Assuming Bank by the end of the first business day following Bank Closing, together with interest determined in accordance with Section 8.4, and loss sharing shall commence immediately. Module 1 Whole Bank w/ Loss Share – P&A Version 1.12 November 17, 2009 27 FIRST REGIONAL BANK Los Angeles, CA