Discharge of Security Interests. Upon payment by the Optionor to the Creditor of the Settlement Payment, the Creditor will promptly, but in any event, no later than two (2) Business Days following payment of the Settlement Payment, discharge all security interest it has in the assets and property of the Optionor and its subsidiaries, and the Optionor and the Creditor agree that until such time as the Settlement Payment is paid by the Optionee in full, the Creditor will remain the senior secured creditor of the Optionor. Upon such discharge, the Creditor shall provide the Optionor and the Optionee with evidence and confirmation in writing of such discharge.
Discharge of Security Interests. Except for the lien of the Statutory Mortgage, this Deed and Permitted Liens, Shipowner will not create or suffer to be continued any Security Interest on the Vessel and will cause the Vessel to be released or discharged from each such Security Interest. If the Vessel is attached, levied upon, or taken into custody or detained by any proceeding in any court or tribunal or by any government or other authority, Shipowner will promptly notify Mortgagee thereof and will, within twenty-one (21) days of said event, cause the Vessel to be released and all such Security Interests to be discharged. Notwithstanding the above, no Security Interest need be discharged if (i) Shipowner is contesting such Security Interest in good faith through appropriate proceedings and (ii) the non-discharge thereof does not in any way hinder the operation or trading of the Vessel or impair Shipowner's ownership of the Vessel or the rights of Mortgagee under the Statutory Mortgage and this Deed.
Discharge of Security Interests. Seller shall provide evidence, satisfactory to Purchaser, that there shall be no lien or Encumbrances on any of the Transferred Assets.
Discharge of Security Interests. (a) Except for the lien of this Mortgage and Permitted Liens, Shipowner will not create or suffer to be continued any Security Interest on the Vessel and in due course and in any event within thirty (30) days after the same becomes due and payable will pay or cause to be discharged all claims or demands which, if not paid or discharged, might result in the creation of a Security Interest on the Vessel and will cause the Vessel to be released or discharged from each such Security Interest. Similarly, if a Security Interest is filed against the Vessel or if the Vessel is otherwise attached, levied upon, or taken into custody or detained by any proceeding in any court or tribunal or by any government or other authority, Shipowner will promptly notify Mortgagee thereof and will, within fourteen (14) days of said event, cause the Vessel to be released and all Security Interests thereon other than that of this Mortgage and the Permitted Liens, to be discharged. Notwithstanding the above, no Security Interest need be discharged if (i) Shipowner shall contest such Security Interest in good faith through appropriate proceedings, (ii) Shipowner sets aside with Mortgagee adequate reserves reasonably acceptable to Mortgagee in accordance with generally accepted accounting principles, or otherwise obtains a protection and indemnity club letter of assurance reasonably acceptable to Mortgagee, with respect to any such Security Interest so contested, and (iii) the non-discharge thereof does not in any way hinder the operation or trading of the Vessel or impair Shipowner's ownership of the Vessel or the rights of Mortgagee under this Mortgage.
