Common use of Bank Accounts and Lockboxes Clause in Contracts

Bank Accounts and Lockboxes. (a) During the term of this Agreement, and subject to Sections 3.04(b) and 3.04(c), the Administrator shall ensure that all amounts collected from Policyholders with respect to the Administered Business are deposited in bank accounts and lockboxes owned by the Company and not in any accounts or lockboxes owned by the Administrator. (b) Provided that a Recapture Event shall not have occurred and be continuing, the Company shall give the Administrator non-exclusive authority over the bank accounts and lockboxes of the Company used in the operation of the Administered Business. Upon the occurrence of any Recapture Event, the Company shall be entitled to revoke such authority; provided, however, that, if the Administrator’s non-exclusive authority is so revoked, then the Administrator shall no longer have any obligations hereunder with respect to (i) transfers of cash and other assets as described in this Section 3.04 or (ii) the payment of any other disbursements to be made by the Company with respect to the Administered Business. The Administrator shall, on each Business Day, transfer (i) amounts deposited in such bank accounts and lock boxes of the Company that are attributable to the Administered Business to Administrator’s bank accounts and lockboxes, and (ii) amounts deposited in such bank accounts and lock boxes of the Company that are not attributable to the Administered Business to other bank accounts and lock boxes of the Company designated by the Company. For the avoidance of doubt, the Administrator shall not be responsible for any funds withdrawn by the Company from any bank account and lockbox owned by Company. In the event the Company inappropriately withdraws and fails to pay over any such funds withdrawn from any bank account or lockbox owned by the Company, the Administrator shall be entitled to offset the amount thereof against any amounts due the Company through the Quarterly Accounting. (c) The Administrator shall be permitted to utilize the Company’s names on check stock in making disbursements in accordance with this Agreement.

Bank Accounts and Lockboxes. (a) During the term of this Agreement, and subject to Sections 3.04(b) and 3.04(c), the Administrator shall ensure that all amounts collected from Policyholders ceding companies and retrocessionaires with respect to the Administered Business are deposited in bank accounts and lockboxes owned by the Company Companies and not in any accounts or lockboxes owned by the Administrator. (b) Provided that a Recapture Triggering Event shall not have occurred and be continuing, the Company SLD shall give the Administrator non-exclusive authority over the bank accounts and lockboxes of the Company SLD used in the operation of the Administered Business. Upon the occurrence of any Recapture Triggering Event, the Company SLD shall be entitled to revoke such authority; provided, however, that, if the Administrator’s non-exclusive authority is so revoked, then the Administrator shall no longer have any obligations hereunder with respect to (i) transfers of cash and other assets as described in this Section 3.04 or (ii) the payment of any other disbursements to be made by the Company with respect to the Administered Business. The Administrator shall, on each Business Daya daily basis, transfer (i) amounts deposited in such bank accounts and lock boxes of the Company SLD that are attributable to the Administered Business to Administrator’s 's bank accounts and lockboxes, and (ii) amounts deposited in such bank accounts and lock boxes of the Company SLD that are not attributable to the Administered Business to other bank accounts and lock boxes of the Company SLD designated by the CompanySLD. For the avoidance of doubt, the Administrator shall not be responsible for any funds withdrawn by the Company SLD from any bank account and lockbox owned by CompanySLD. In the event the Company SLD inappropriately withdraws and fails to pay over any such funds withdrawn from any bank account or lockbox owned by the CompanySLD, the Administrator shall be entitled to offset the amount thereof against any amounts due the Company SLD through the Quarterly Accounting. (c) Provided that a Triggering Event shall not have occurred and be continuing, SLDI shall pay over to the Administrator on a daily basis all funds deposited in any SLDI bank account or lockbox that are attributable to the Administered Business. If SLDI establishes any bank accounts or lockboxes to be used exclusively for the Administered Business, SLDI shall give the Administer non-exclusive authority over such bank accounts and lockboxes, and upon the occurrence of any Triggering Event, SLDI shall be entitled to revoke such authority. For the avoidance of doubt, the Administrator shall not be responsible for any funds withdrawn by SLDI from any bank account and lockbox owned by SLDI. In the event SLDI inappropriately withdraws and fails to pay over any such funds withdrawn from any bank account or lockbox owned by SLDI, the Administrator shall be entitled to offset the amount thereof against any amounts due SLDI through the Quarterly Accounting. (d) The Administrator shall be permitted to utilize the Company’s Companies' names on check stock in making disbursements in accordance with this Agreement.