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ITEM 8 / NOTE 16. CONTINGENCIES, COMMITMENTS AND GUARANTEES.....................................................................................................................................................................................representations and warranties that extend to the expiration of the statute of limitations and are subject to anaggregate deductible of $50 million.In connection with the indemnity obligations described above, as of December 31, 2012, approximately $567 millionof proceeds from the sale of ALICO were on deposit in an escrow arrangement. Under the terms of a letteragreement between MetLife and us entered into on April 26, 2012, $44 million was released to us on April 30, 2012which represented funds that were initially held back from the release of escrow to us on November 1, 2011. Underthe terms of a letter agreement between MetLife and us entered into on July 13, 2012, $950 million was released tous on August 31, 2012 instead of November 1, 2012 as originally provided under the ALICO stock purchaseagreement. An additional $33 million was released on November 8, 2012. The amount required to be held in escrowdeclines to zero in May 2013, although indemnification claims then pending will reduce the amount that can bereleased to us.Other ..............................................................................................................................................................................................• See Note 11 herein for commitments and guarantees associated with VIEs.• See Note 12 herein for disclosures on derivatives.• See Note 27 herein for additional disclosures on guarantees of outstanding debt...................................................................................................................................................................................................................................AIG 2012 Form 10-K 303