Common use of Asset Value Clause in Contracts

Asset Value. 52.1 Clause 52.2 below applies if the Owners notify the Charterers that: (a) the Market Value of the Vessel; plus (b) the net realisable value of any additional security previously provided under Clause 52.2(a), is at any time below one hundred twenty per cent. (130%) of the Charterhire Principal Balance. 52.2 If the Owners serves a notice on the Charterers under Clause 52.1, the Charterers shall, within fifteen (15) Banking Days after the date on which the Owners' notice is served, either: (a) provide, or ensure that a third party provides, additional security acceptable in form and substance to the Owners which, in the opinion of the Owners, has a net realisable value at least equal to the shortfall and is documented in such terms as the Owners may approve or require; or (b) prepay (at least) such part of the Charterhire Principal Balance as will eliminate the shortfall. 52.3 The Charterers shall promptly provide the Owners and any shipbroker or expert acting under this Clause 52 with any information which the Owners, the Approved Valuer, shipbroker or expert may reasonably request for the purposes of the valuation; and, if the Charterers fail to provide the information by the date reasonably specified in the request, the valuation may be made on any basis and assumptions which the Owners, Approved Valuer, shipbroker or expert consider prudent. 52.4 The Charterers shall at its own cost provide the Owners with valuations addressed to the Owners of the Vessel and any other ship over which additional Security has been created in accordance with Clause 52.2, to enable the Owners to determine the Market Value of the Vessel and such other ship, such valuations to be provided on one occasion in each calendar year during the month of December if no Termination Event or Potential Termination Event has occurred and is continuing, and as many times as required by the Owners if a Termination Event or a Potential Termination Event has occurred and is continuing. 52.5 Any partial prepayment shall be made together with Breakage Costs (if any), and shall be applied towards reducing the Charterhire Principal Balance in the inverse order of maturity.

Asset Value. 52.1 Clause 52.2 below applies if the Owners notify the Charterers that: (a) the Market Value of the Vessel; plus plus (b) the net realisable value of any additional security previously provided under Clause 52.2(a), is at any time below one hundred twenty per cent. (130%) of the Charterhire Principal Balance. 52.2 If the Owners serves a notice on the Charterers under Clause 52.1, the Charterers shall, within fifteen (15) Banking Days after the date on which the Owners' ’ notice is served, either: : (a) provide, or ensure that a third party provides, additional security acceptable in form and substance to the Owners which, in the opinion of the Owners, has a net realisable value at least equal to the shortfall and is documented in such terms as the Owners may approve or require; or or (b) prepay (at least) such part of the Charterhire Principal Balance as will eliminate the shortfall. 52.3 The Charterers shall promptly provide the Owners and any shipbroker or expert acting under this Clause 52 with any information which the Owners, the Approved Valuer, shipbroker or expert may reasonably request for the purposes of the valuation; and, if the Charterers fail to provide the information by the date reasonably specified in the request, the valuation may be made on any basis and assumptions which the Owners, Approved Valuer, shipbroker or expert consider prudent.. BBC Rider Clause (Xxxxxxxxxx) (20180426) 52.4 The Charterers shall at its own cost provide the Owners with valuations addressed to the Owners of the Vessel and any other ship over which additional Security has been created in accordance with Clause 52.2, to enable the Owners to determine the Market Value of the Vessel and such other ship, such valuations to be provided on one occasion in each calendar year during the month of December if no Termination Event or Potential Termination Event has occurred and is continuing, and as many times as required by the Owners if a Termination Event or a Potential Termination Event has occurred and is continuing. 52.5 Any partial prepayment shall be made together with Breakage Costs (if any), and shall be applied towards reducing the Charterhire Principal Balance in the inverse order of maturity.