Common use of Excess Reserves Clause in Contracts

Excess Reserves. (a) As of the end of each calendar quarter, the Debtor shall calculate the fair market value of the Assets held in the Collateral Accounts as of the last day of such quarter (such amount, the "Ending Asset Value") and the aggregate loss, loss adjustment expense reserves, unearned premium reserves, Retrocedant Ceding Commission and other reserves related to the Reinsurance Contracts as reflected in Debtor's management accounts, as of the last day of such quarter (the "Ending Reserves") and shall provide such calculation to the Secured Party within forty-five days of the end of such quarter. (b) The excess of the Ending Reserves over the Ending Asset Value, if any, shall be the "Excess Reserves". To the extent the Ending Reserves exceed the Ending Asset Value, the Debtor shall within 3 Local Business Days deposit sufficient Qualifying Assets with a fair market value equal to such Excess Reserves. To the extent the Ending Asset Value exceeds the Ending Reserves, the Secured Party shall upon the Debtor's request, join the Debtor in instructing the Custodian to release Collateral with a fair market value equal to the amount of such excess, provided, however, that no Relevant Event has occurred and is continuing.

Excess Reserves. (a) As of the end of each calendar quarter, the Debtor shall calculate the fair market value of the Assets held in the Collateral Accounts as of the last day of such quarter (such amount, the "Ending Asset Value") and the aggregate loss, loss adjustment expense reserves, unearned premium reserves, Retrocedant Ceding Commission and other reserves related to the Reinsurance Contracts as reflected in Debtor's management accounts, as of the last day of such quarter (the "Ending Reserves") and shall provide such calculation to the Secured Party within forty-five days of the end of such quarter. (b) The excess of the Ending Reserves over the Ending Asset Value, if any, shall be the "Excess Reserves". To the extent the Ending Reserves exceed the Ending Asset Value, the Debtor shall within 3 Local Business Days deposit sufficient Qualifying Assets with a fair market value equal to such Excess Reserves. To the extent the Ending Asset Value exceeds the Ending Reserves, the Secured Party shall shall, upon the Debtor's request, join the Debtor in instructing the Custodian to release Collateral with a fair market value equal to the amount of such excess, provided, however, that no Relevant Event has occurred and is continuing.