Common use of Constructive Total Loss Clause in Contracts

Constructive Total Loss. In the case of an Event of Loss that is a constructive total loss of the Vessel, Mortgagee shall have the right (but only with prior written consent of Mortgagor unless an Indenture Event of Default has occurred and is continuing) to join in Mortgagor's claim for a constructive total loss of the Vessel, and if both (i) such claims are accepted by all underwriters under all policies then in force as to the Vessel and (ii) payment in full is made in cash under such policies to Mortgagee in an amount at least equal to the then outstanding amount of the Obligations, then Mortgagee shall have the right to abandon the Vessel to the underwriters under such policies, free from the Lien of this Mortgage.