Common use of Return of Assets Clause in Contracts

Return of Assets. In the event that the Ceding Insurer withdraws assets from the Reinsurance Trust Account for the purposes set forth in Section 10.05(b)(i) in excess of actual amounts required to meet the Reinsurer’s obligations to the Ceding Insurer, or in excess of amounts determined to be due under Section 10.05(b)(ii) (in each case, a “Ceding Insurer Additional Withdrawal”), the Ceding Insurer shall promptly pay the Ceding Insurer Additional Withdrawal Return Amount relating to such Ceding Insurer Additional Withdrawal to the Reinsurer (which hereby directs such payment to be made to the Reinsurance Trust Account). If the Ceding Insurer fails to return such excess, the Ceding Insurer will be required to pay the Reinsurer, on the last Business Day of each month, interest on such excess amounts not yet returned at a per annum rate equal to the Prime Rate and calculated by the Ceding Insurer on the basis of the actual number of days elapsed in the applicable period and a 360-day year comprised of twelve 30-day months (“Ceding Insurer Additional Withdrawal Interest”), until such excess amounts are returned and any interest owed thereon is paid. The Ceding Insurer shall notify the Reinsurer on the date of any such payment that it has made such payment, stating the amount thereof.