Exhibit 10.1
Summary of Terms
Letter of Credit Facility
Account Party: | Alterra Bermuda Limited | |
Facility Amount: Letter of Credit fee: | GBP 30,000,000 Uncommitted 15bps per annum payable quarterly in arrears in respect of LOCs collateralized by cash. | |
Facility: | Letter of Credit facility will be available in US and Canadian dollars and British Pounds Sterling. Other currencies available with appropriate currency margins as defined in the Reinsurance Deposit Agreement. | |
Purpose of facility: | To provide Letters of Credit in support of the Account Party’s Funds at Lloyds (FAL) obligations. | |
Maturity date of each Letter of Credit: | The maximum tenor of each Letter of Credit will be up to 4 years inclusive of any notice period to the beneficiaries. Each Letter of Credit, if requested by the Account Party, may include a clause to the effect that the Letter of Credit will automatically be extended for successive periods that may vary from time to time but which in no event is greater than 1 calendar year. | |
Facility collateral monitoring: Letter of Credit issuer: Collateral Custodian: | Citibank Europe Plc. Citibank N.A. Citibank N.A. London | |
Collateral: Documentation: Legal Expenses: | The Account Party will provide collateral over a Charged Portfolio in an amount equal to the Required Value (as defined in the Reinsurance Deposit Agreement). Cash deposits are to be held in an account(s) held with Citibank N.A., London The Facility shall remain subject to the following executed documentation (each as amended, varied, supplemented, novated or assigned as the case may be) and comprising the following:- Form 3 Master Reimbursement Agreement Form 12 Reinsurance Deposit Agreement Bank Mandate; and Contingent communications documents. All Citibank’s legal costs will be for the Account Party. |
For and on behalf of Alterra Bermuda Limited