Common use of Permissible Withdrawals of Escrow Principal Clause in Contracts

Permissible Withdrawals of Escrow Principal. In compliance with the NPM Statute and state law(s) of the Beneficiary States, the Escrow Agent shall release QEF Principal to the Company from the applicable Beneficiary State’s QEF Sub-Account(s) only in the limited circumstances identified below when the listed conditions have been fully satisfied: a. Released Claim I. QEF Principal may be used to pay a judgment or settlement on any Released Claim brought against the Company by the applicable Beneficiary State or by any Releasing Party located or residing in the applicable Beneficiary State. II. Promptly after receiving a written request for release of funds under this subsection and prior to any such release, the Escrow Agent shall provide written notice to the Company, the Releasing Party, and the Attorney General or Attorney General’s designee of the applicable Beneficiary State as set forth and defined in Section 6 herein. The notice shall specify in reasonable detail the amount of the funds to be released, the payee and the basis for the requested release (which shall be provided to the Escrow Agent by the person requesting payment). The Company and the Attorney General or Attorney General’s designee of the applicable Beneficiary State whose QEF Sub-Account would be reduced by the requested release of funds shall provide a written response to the Escrow Agent with copies to each other, within forty-five (45) calendar days from the date of receipt of this notice. III. Should the Company or the applicable Beneficiary State timely object in writing to a requested release of funds under this subsection, the Escrow Agent shall not authorize the requested release of funds until such objection has been finally resolved. IV. If no objection is received, the Escrow Agent shall pay the Released Claim after the expiration of the forty-five