Common use of Amount of Indemnity Clause in Contracts

Amount of Indemnity. (a) Subject to the Maximum Aggregate Liability, the amount of indemnity payable to the Policyholder by EXIM Bank shall be the Insured Percentage of the Policyholder’s Loss where such Loss is caused by Non- Payment. Such indemnity shall be less the pro-rated portion of any amounts (such pro-rata based on the Insured Percentage and the Minimum Retained Uninsured Percentage) which are recovered in respect of the Scheduled Payment to which the Loss relates. (b) Prior to the payment of indemnity: (i) if the Policyholder has extended credits to the Borrower that are not insured by EXIM Bank; and subsequent to the Due Date, the Borrower (or, in the event of the Insolvency of the Borrower, any receiver or administrator thereof) intends to make a payment to the Policyholder, the Policyholder will use its reasonable endeavours to ensure that such payment is allocated equitably between insured payments and other payments owed to the Policyholder by the Borrower, and without preference to payment obligations not covered hereunder by EXIM Bank; and (ii) all monies received by the Policyholder in respect of the Facility Agreement and the Export Receivables shall be allocated according to the Facility Agreement or, if not specified therein, according to the State Bank of Pakistan’s instructions and normal practice applied by the Policyholder. (c) In conjunction with the above, the Policyholder agrees that it will not specifically instruct the Borrower to channel monies due to the Policyholder to any facility or guarantee not covered hereunder by EXIM Bank. (d) After payment of indemnity, allocation of monies shall be as per Article 19 (Recoveries).