Common use of Credit Review Clause in Contracts

Credit Review. The Lessor shall be entitled during the period between the dates falling one hundred and eighty (180) and ninety (90) days prior to the Credit Review Date (in this clause 3.7 the "Credit Review Period") to carry out a review of the security arrangements constituted by the Relevant Documents and the creditworthiness of the Lessee and the Lessee Parent (taking into account the exposure of the Lessee and the Lessee Parent under the Relevant Documents having regard to any Relevant Bank Documents which will continue in full force and effect after the Credit Review Date, any new valuations of the Ships and the Other Ships provided to the Lessor at such time and any surplus amounts available in respect of the Ships and the Other Ships as security to the Lessor and the Other Lessors at that time) and, at the absolute discretion of the Lessor, to determine whether such security arrangements and/or creditworthiness are adequate to secure the Strip Liability Amount and any other unsecured obligations of the Lessee under this Lease and the other Lease Documents in respect of the period falling after the Credit Review Date. The Lessor agrees that it shall consult with the Lessee during the Credit Review Period when considering the matters to be considered by the Lessor pursuant to this clause. Following such review the Lessor shall notify the Lessee of its decision on or before the expiry of the Credit Review Period and, if it considers that such security arrangements and/or creditworthiness are inadequate, the Lessor will initially notify the Lessee in writing and during the period from the date of such notification up to the date falling forty five (45) days prior to the Credit Review Date and if the Lessee so requests, the Lessor and the Lessee shall discuss in good faith alternative arrangements which, if implemented, would cause the Lessor to be comfortable with the security arrangements and/or creditworthiness of the Lessee and the Lessee Parent and if agreement in principle can be reached on such alternative arrangements then such alternative arrangements shall be documented on terms and in a form acceptable to the Lessor on or prior to the Credit Review Date. If, notwithstanding the said good faith discussions, the Lessor is still not satisfied that the security arrangements and/or creditworthiness of the Lessee and the Lessee Parent, even on a modified basis, are adequate, the Lessee will be entitled at the Lessee's option to either: