Additional Vessel Covenants Sample Clauses
Additional Vessel Covenants. The Borrower further covenants with the Agent in respect of the Vessel:-
(a) at and from the Delivery Date to effect and maintain registration of the Mortgage at the Vessel’s Vessel Registry; and not cause nor permit to be done any act or omission as a result of which that registration or the registration set out in clause 9.1.23 above might be defeated or imperilled; and
(b) in the event of any requisition or seizure of the Vessel, to take all lawful steps to recover possession of the Vessel as soon as it is entitled to do so; and
(c) to give to the Agent from time to time during the Facility Period on request such information as the Agent may reasonably require with regard to the Vessel’s employment, position and state of repair; and
(d) not during hostilities (whether or not a state of war shall formally have been declared and including, without limitation, any civil war) to permit the Vessel to be employed in carrying any goods which may be declared to be contraband of war or which may render that Vessel liable to confiscation, seizure, detention or destruction, nor to permit the Vessel to enter any area which is declared a war zone by any governmental authority or by the Vessel’s insurers unless the Borrower has effected at its own expense such additional insurances as shall be necessary or customary for first class ship owners. The Borrower shall promptly notify the Agent thereof and, if required by the Agent, specifically assign those insurances to the Security Trustee by such documents as the Agent, acting reasonably, may require; and
(e) not without the prior written consent of the Agent to enter into any agreement or arrangement for sharing the Earnings; and
(f) to take all reasonable precautions to prevent any infringements of any anti drug legislation in any jurisdiction in which the Vessel shall trade and in particular (if the Vessel is to trade in the United States of America) to take all reasonable precautions to prevent any infringements of the Anti-Drug Abuse Act of 1986 of the United States of America and for this purpose, if required, to enter into a “Carrier Initiative Agreement” with the United States’ Customs Service and to procure that the same or a similar agreement is maintained in full force and effect and that the Borrower’s obligations thereunder are performed in respect of the Vessel.
Additional Vessel Covenants. With respect to the Vessel, the Borrower hereby covenants and agrees:
(i) to only use the Vessel in the territorial waters of nations which recognize the rights of vessels registered under M▇▇▇▇▇▇▇ Islands and U.S. flag and only in locations where the Vessel’s operating specifications allow it to operate safely and within its technical capacities and certification and within the limits of its insurance coverages;
(ii) to provide to the Lender forthwith copies of all material notices and information received by it in relation to the Vessel and her Insurances and operations, unless such notices or information state they have been provided directly to the Lender;
(iii) to cause the Vessel at all times to comply with any of the Oil Majors crew matrix requirements to the extent that the Vessel is subject to a time charter with such Oil Major;
(iv) to promptly notify the Lender if at any time the Vessel is rejected by any Oil Major and thereafter, within forty-five (45) days thereof, to restore the Vessel’s Acceptability provided that the Vessel’s trading patterns and the relevant Oil Major’s risks permit a re-inspection (if required);
(v) to ensure that at all times after January 31, 2022, the Vessel has Acceptability from at least one (1) Oil Major;
(vi) to assign and provide that any Requisition Compensation is applied in accordance with Section 6 of the First Preferred Mortgage as if received on the basis of a sale of a Vessel;
Additional Vessel Covenants. With respect to each Vessel, the Borrowers hereby covenant and agree:
1. to keep the Vessels duly registered under the laws and flag of The Republic of the ▇▇▇▇▇▇▇▇ Islands;
2. to not do, omit to do or allow to be done, anything as a result of which such registration might be cancelled or imperiled;
3. to not change the name or port of registry of the Vessels;
4. to provide to the Lender forthwith copies of all material notices and information received by it in relation to the Vessels, their Earnings and Insurances, or operations unless such notices or information state they have been provided directly to the Lender;
5. to assign and provide that any Requisition Compensation is applied in accordance with the provisions of the relevant Mortgage as if received on the basis of a sale of such Vessel;
6. to keep each Vessel free and clear of all liens, charges, mortgages and encumbrances, other than (1) liens in favor of the Lender, (2) liens for current crew’s wages, general average and salvage (including contract salvage), (3) liens incurred in the ordinary course of business for repairs, supplies, bunkers, services, wharfage, harbor dues and canal tolls that are repayable in accordance with customary trade terms but in no event later than sixty (60) days from date of incurrence unless the same are being contested in good faith through legal proceedings being diligently pursued and for which appropriate reserves have been set aside in accordance with GAAP, (4) liens for personal injury sustained aboard such Vessel which are wholly insured and which are being contested in good faith by appropriate legal proceedings being diligently pursued and pending resolution thereof could not reasonably be expected to result in sale, forfeiture or loss of such Vessel and liens permitted by the Mortgage, and (5) liens for taxes not yet due and payable which are being contested in good faith through legal proceedings being diligently pursued and for which appropriate reserves have been set aside in accordance with GAAP (collectively, “Permitted Liens”), and not to 4822-8289-8388 pledge, charge, assign or otherwise encumber (in favor of any Person other than the Lender) the Earnings or Insurances of such Vessel, or to suffer the creation of any such pledge, charge, assignment or encumbrance as aforesaid to or in favor of any Person other than the Lender;
7. without the prior written consent of the Lender (and then only subject to such terms as the Lender may impose), not to s...
Additional Vessel Covenants. Until such time as the Credit Parties have granted the Security Trustee Mortgages over, and executed and delivered to the Security Trustee Security Documents in relation to, Additional Vessels with an aggregate Appraised Value of at least Fifty Million Dollars (US$50,000,000), the Borrower shall deliver to the Administrative Agent each of the following upon delivery of each Additional Vessel to a Credit Party: