Common use of Offset and Recoupment Rights Clause in Contracts

Offset and Recoupment Rights. Any debits or credits, matured or unmatured, in favor of or against either the Ceding Company or the Reinsurer with respect to this Agreement are deemed mutual debits or credits, as the case may be, and shall be set off and/or recouped from any amounts due to the Ceding Company or the Reinsurer hereunder, as the case may be, and only the net balance shall be allowed or paid. This Section 3.5 will not be affected, modified or reconstrued due to the insolvency, liquidation, rehabilitation, conservatorship, receivership or comparable proceeding by or against the Ceding Company or the Reinsurer, and set off and recoupment hereunder shall be permitted and enforced to the maximum extent provided under Applicable Law.