Common use of Approved Mortgagee Clause in Contracts

Approved Mortgagee. 56.1 The Sub-Charterers hereby acknowledge that the Owners intend to obtain a loan from Marfin Egnatia Bank S.A. of Greece (referred to in this Sub-Charter as the “Approved Mortgagee” to enable the Owners to finance or refinance the purchase of the Vessel and enter into the Head-Charter. 56.2 It is noted and agreed that the said loan will be secured by, inter alia, a mortgage and as the case may be collateral deed or deeds of covenant over the Vessel (referred to in this Sub-Charter as an “Approved Mortgage”), and an assignment or assignments of all the Owners and the Head-Charterers’ rights in the Insurances, earnings and the proceeds of any requisition of the Vessel and of the benefit of this Sub-Charter. 56.3 The Sub-Charterers hereby confirm their agreement to the provision by the Head-Charterers of the securities referred to in Clause 56.2 and undertake, at the request of the Owners and/or the Head-Charterers and (with respect to the Sub-Charterers’ own costs, including legal costs) at the Sub-Charterers’ expense, to execute all such documents and instruments and to do all such acts and things as the Approved Mortgagee may reasonably require to create and perfect, or otherwise in relation to, such security, and hereby acknowledges that their rights as Sub-Charterers of the Vessel shall in all respects be subordinate to the rights of the Approved Mortgagee. Without limitation, the Sub-Charterers will on request by the Head-Charterers additionally assign all their rights in the obligatory Insurances and the freights, hires or other earnings of the Vessel to the Head-Charterers, or to the Approved Mortgagee as assignee of the Head-Charterers’ rights under this Sub-Charter, as the Approved Mortgagee may require, as security for the performance by the Sub-Charterers of their obligations under this Sub-Charter and the Time Charter.