Common use of Time and Manner of Settlement of Payments Clause in Contracts

Time and Manner of Settlement of Payments. No later than fifteen (15) days after the Reinsurer’s receipt of the quarterly reports referenced in Section 7.01, the Reinsurer and the Ceding Company, as applicable, shall settle the balance due to the other party with respect to the quarter just concluded based on premiums actually received and Losses paid by the Ceding Company and any adjustments to the Initial Reinsurance Premium and the Ceding Commission. Any payment to be made by the Ceding Company to the Reinsurer shall be deposited by the Ceding Company into the Trust Account. Any payment to be made by the Reinsurer to the Ceding Company shall be deducted by the Ceding Company from the Trust Account to the extent of the balance therein, after first deducting from such amount any amounts previously or otherwise paid by the Reinsurer (through setoff against premiums owed to the Reinsurer hereunder, or otherwise already paid by or credited to the Reinsurer), and any further amount due shall be paid in cash by the Reinsurer to the Ceding Company. In addition, the Ceding Company shall direct the Trustee to distribute to the Ceding Company any Profit Commission due to be paid to the Ceding Company and to distribute to the Reinsurer any Profit Distribution Amount due to be paid to the Reinsurer.