EXECUTORY CONTRACT AND INSOLVENCY-SETOFF. 9.1. INSOLVENCY-SETOFF (OR OFFSET). In the event either party to the Assumption Agreement shall be the subject of insolvency proceedings ("Insolvency Proceedings") all independent debts on unrelated contracts between the parties shall be setoff to the extent: (a) the debt from the creditor to the insolvent arose pre-petition. (b) the debt from the insolvent to the creditor arose pre-petition. (c) the debts are mutual, meaning they are between the two parties to this Assumption Agreement, and in the same right and the same capacity. The cash payment due on each reinsurance agreement between the parties shall constitute the "debt" on such agreement.
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Sources: Assumption Reinsurance Agreement (United Income Inc), Assumption Reinsurance Agreement (First Commonwealth Corp), Assumption Reinsurance Agreement (United Trust Inc /Il/)
EXECUTORY CONTRACT AND INSOLVENCY-SETOFF. 9.1. INSOLVENCY9.1 Insolvency-SETOFF Setoff (OR OFFSETor Offset). In the event either party to the Assumption Agreement shall be the subject of insolvency proceedings ("Insolvency Proceedings") all independent debts on unrelated contracts between the parties shall be setoff to the extent:
(a) the debt from the creditor to the insolvent arose pre-petition.
(b) the debt from the insolvent to the creditor arose pre-petition.
(c) the debts are mutual, meaning they are between the two parties to this Assumption Agreement, and in the same right and the same capacity. The cash payment due on each reinsurance agreement between the parties shall constitute the "debt" on such agreement.
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