Actual Total Loss. In the event a Container is lost, stolen, destroyed, or damaged beyond structural or economic repair (an “Actual Total Loss”), Lessee will notify CAI in writing of the event of Actual Total. Provided Lessee is in compliance with its obligations under this Agreement at the time notice of Actual Total Loss is received by CAI, CAI will issue an invoice to Lessee for the Depreciated Replacement Value (“DRV”) of the Actual Total Loss Container calculated in accordance with Subsection 7 (d). If payment of the DRV is received by CAI within 30 days of the invoice date, daily rental charges will retroactively terminate on the date of CAI’s receipt of written notice of Actual Total Loss. If payment of the DRV is not received as aforesaid, daily rental charges shall continue to accrue until payment of the DRV is made in full. Upon receipt of payment of the DRV and written request from Lessee, title to the Actual Total Loss Container will be transferred to Lessee. Any taxes, duties or charges which become payable by virtue of the transfer of title to Lessee will be for Lessee’s account.
Actual Total Loss. This is a type of loss which occurs when the goods are completely destroyed by fire, when a ship sinks after collision or when the goods have been affected by sea water such that they are no more fit for the purpose intended.
