Common use of Application of Proceeds of Insurance Clause in Contracts

Application of Proceeds of Insurance. All insurance proceeds in ------------------------------------ respect of insurance maintained by Charterer hereunder with respect to the Vessel under Article 16(a)(i) and payable under circumstances not constituting an Event of Loss shall be payable to Charterer. All insurance proceeds (up to an amount not exceeding the applicable Termination Value) in respect of insurance maintained by Charterer hereunder with respect to the Vessel under Article 16(a)(i) and payable as the result of an Event of Loss will be paid to the Owner (or, subject to the provisions of the Head Lease, to the Indenture Trustee so long as this Charter Party is subject to the Lien of the Indenture) and shall be applied in reduction of Charterer's obligation to pay Termination Value and the other amounts payable under Article 14 hereof in connection with such Event of Loss, if not already paid by Charterer, or, if already paid by Charterer, shall be applied to reimburse Charterer for its payment of such Termination Value and the other amounts payable under Article 14 hereof, and the balance, if any, of such payments remaining thereafter will be paid over to, or retained by, Charterer.