Before first drawdown Clause Samples

Before first drawdown. On a Ship becoming a Total Loss or suffering damage or being involved in an incident which in the reasonable opinion of the Agent may result in such Ship being subsequently determined to be a Total Loss or on the Contract for a Ship being assigned, transferred, sold or novated to and in favour of any person, in each case before any Contract Instalment Advance for such Ship is drawn down, the obligation of the Banks to advance any Contract Instalment Advance for such Ship (or part thereof) shall immediately cease and the Total Commitment shall be reduced accordingly.

Before first drawdown. On a Borrower’s Ship becoming a Total Loss (or suffering damage or being involved in an incident which, in the opinion of the Agent, may result in such Ship subsequently being determined to be a Total Loss) or on or prior the date falling immediately prior to the completion of the novation, transfer or assignment of any Contract by the relevant Borrower in favour of another person (with the prior written consent of the Agent as and when required by the Security Documents), in each case before any Advance relevant to such Borrower’s Ship or Contract has been drawn down, then, the obligation of the Banks to make such Advance available shall immediately cease and the Total Commitment shall be reduced by the aggregate amount of all the Advances for such Borrower’s Ship.

Before first drawdown. On a Ship becoming a Total Loss (or suffering damage or being involved in an incident which in the opinion of the Bank may result in such Ship being subsequently determined to be a Total Loss) or sold (other than under the relevant Contract) before any Advance is drawn down, the obligation of the Bank to make available the Commitment (or part thereof) shall immediately cease and the Commitment shall be reduced to zero (0).