Surplus Notes; Repayment Sample Clauses

Surplus Notes; Repayment. (a) The Surplus Notes to be issued pursuant to this Agreement are subject to the Illinois Insurance Laws. Notwithstanding anything to the contrary in this Agreement, any payment of principal of, interest on or any monies due with respect to the Surplus Notes, whether at their stated maturity, by court action or otherwise, may only be made out of KILICO’s free and divisible surplus with the prior approval of the Director in accordance with Illinois Insurance Laws. (b) If the Director does not approve the making of any payment of principal of, interest on or any monies due with respect to the Surplus Notes on the due date therefore, such payment shall be made by KILICO on the next following date on which KILICO shall have the approval of the Director to make such payment. Interest will continue to accrue on any such principal during the period while payment thereof is extended through the actual date of payment at the rate specified in the Surplus Note.