Common use of Application of Retention Account Clause in Contracts

Application of Retention Account. (a) In the event that a mandatory prepayment obligation arises under Clause 6.5 (a) upon a sale, Total Loss or non delivery of a Vessel, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan any amounts as may be required pursuant to Clause 6.5 and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale, Total Loss or non delivery of the relevant Vessel, following the transfer referred to above, may be released to such other account as the Borrower shall designate. (b) In the event that a charter termination event arises under Clause 16.25 in which charter termination fees are payable, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorizes the Facility Agent to instruct the Account Bank to transfer from the Retention Account) (i) if the Borrower arranges a substitute charterer in accordance with Clause 16.25, to such other account as the Borrower may designate, the charter termination fee relating to the relevant Vessel; or (ii) if a mandatory prepayment obligation arises under Clause 6.4(b), to the Facility Agent in prepayment of the relevant Loan, an amount necessary to comply with the prepayment required in Clause 6.4(b). (c) Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7 (Payments).

Application of Retention Account. (a) In the event that a mandatory prepayment obligation arises under Clause 6.5 (a) upon a sale, Total Loss or non delivery of a Vessel, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan any amounts as may be required pursuant to Clause 6.5 and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale, Total Loss or non delivery of the relevant Vessel, following the transfer referred to above, may be released to such other account as the Borrower shall designate. (b) In the event that a charter termination event arises under Clause 16.25 16.25(b) in which charter termination fees are payable, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorizes the Facility Agent to instruct the Account Bank to transfer from the Retention Account) (i) if the Borrower arranges a substitute charterer in accordance with Clause 16.2516.25(b), to such other account as the Borrower may designate, the charter termination fee relating to the relevant Vessel; or (ii) if a mandatory prepayment obligation arises under Clause 6.4(b)6.4, to the Facility Agent in prepayment of the relevant Loan, an amount necessary to comply with the prepayment required in Clause 6.4(b)6.4, following which the balance of the charter termination fees, if any, may be released to such other account as the Borrower shall designate. (c) Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7 (Payments).

Application of Retention Account. (a) In the event that a mandatory prepayment obligation arises under Clause 6.5 (a) upon a sale, Total Loss or non delivery of a Vessel, the Borrower Guarantor shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan any amounts as may be required pursuant to Clause 6.5 and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale, Total Loss or non delivery of the relevant Vessel, following the transfer referred to above, may be released to such other account as the Borrower Guarantor shall designate. (b) In the event that a charter termination event arises under Clause 16.25 16.25(b) in which charter termination fees are payable, the Borrower Guarantor shall procure that there is transferred from the Retention Account (and irrevocably authorizes the Facility Agent to instruct the Account Bank to transfer from the Retention Account) (i) if the Borrower Guarantor arranges a substitute charterer in accordance with Clause 16.2516.25(b), to such other account as the Borrower Guarantor may designate, the charter termination fee relating to the relevant Vessel; or (ii) if a mandatory prepayment obligation arises under Clause 6.4(b)6.4, to the Facility Agent in prepayment of the relevant Loan, an amount necessary to comply with the prepayment required in Clause 6.4(b)6.4, following which the balance of the charter termination fees, if any, may be released to such other account as the Guarantor shall designate. (c) Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7 (Payments).

Application of Retention Account. (a) In the event that a mandatory prepayment obligation arises under Clause 6.5 (a) upon a sale, sale or Total Loss or non delivery of a Vessel, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account 37 21 July 2005 Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan: (i) an amount equal to the proportion that the Initial Market Value of the Vessel the subject of the sale or Total Loss bears to the aggregate Initial Market Value of the Vessels actually delivered; and (ii) any amounts as may be required pursuant to Clause 6.5(b) to ensure that the relevant Required Amount is satisfied, and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale or Total Loss of the relevant Vessel, following the transfers in paragraphs (i) and (ii) above, may be released to such other account as the Borrower shall designate. (b) In the event that a charter termination event arises under Clause 16.24(b) (Termination of Time Charter), the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan any amounts as may be required pursuant to Clause 6.5 and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale, Total Loss or non delivery of the relevant Vessel, following the transfer referred to above, may be released to such other account as the Borrower shall designate.): (b) In the event that a charter termination event arises under Clause 16.25 in which charter termination fees are payable, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorizes the Facility Agent to instruct the Account Bank to transfer from the Retention Account) (i) if the Borrower arranges locates a substitute charterer in accordance with Clause 16.2516.24(c) or (d), to such other account as the Borrower may designate, the charter termination fee amount relating to the relevant Vessel; or or (ii) if a mandatory prepayment obligation arises under Clause 6.4(b), to the Facility Agent in prepayment of the relevant Loan, Loan an amount necessary to comply with ensure that the prepayment required Loan to Value Ratio in Clause 6.4(b)respect of such Vessel is no greater than 60 per cent. (c) Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7 (Payments).

Application of Retention Account. (a) In the event that a mandatory prepayment obligation arises under Clause 6.5 6.4 (aMandatory prepayment – Sale or Total Loss of a Secured Vessel) upon a sale, sale or Total Loss or non delivery of a Secured Vessel, the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent Agent, in prepayment of the relevant Loan Loan, any amounts as may be required pursuant to Clause 6.5 and (unless 6.4 to ensure that the Loan to Value Ratio is less than the Borrowing Base Advance Ratio. Unless an Event of Default shall have occurred and be continuing) , the balance of the proceeds of a sale, sale or Total Loss or non delivery of the relevant Vessel, Secured Vessel following such transfer from the transfer referred to above, Retention Account may be released to such other account as the Borrower shall designate. (b) In the event that a charter termination event arises under Clause 16.25 in which charter termination fees are payable16.25(b) (Termination of Time Charter), the Borrower shall procure that there is transferred from the Retention Account (and irrevocably authorizes authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) ): (i) if the Borrower arranges locates a substitute charterer in accordance with Clause 16.2516.25(c) or (d), to such other account as the Borrower may designate, the charter termination fee amount relating to the relevant Secured Vessel; or or (ii) if a mandatory prepayment obligation arises under Clause 6.4(b6.3(b), to the Facility Agent in prepayment of the relevant Loan, Loans an amount necessary to comply with ensure that the prepayment required in Clause 6.4(b)Loan to Value Ratio is no greater than the Borrowing Base Advance Ratio. (c) Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7 (Payments).