Common use of Fifth Instalment Clause in Contracts

Fifth Instalment. Upon the cost adjustment to the Contract Price in accordance with the provisions of the Contract, the Buyer shall, at least two (2) banking days prior to the anticipated delivery of the Vessel, remit by bank transfer telex or cable the fifth instalment as adjusted, if any, to the Bank with an irrevocable instruction valid for a period of ten (10) banking days that the amount so remitted shall be payable to the Builder against presentation by the Builder to the Bank a copy of PROTOCOL OF DELIVERY AND ACCEPTANCE of the Vessel executed by the Buyer and the Builder and countersigned by a representative of the Buyer’s bank if presented together with an invoice for the amount due under this instalment. If the Builder fails to present a copy of the signed PROTOCOL OF DELIVERY AND ACCEPTANCE (and duly countersigned by a representative of the Buyer’s bank if presented) to the Bank within the said period of ten (10) banking days or unless the validity of the instruction is further extended by the Buyer based on a mutual understanding reached with the Builder within the said ten (10) days validity period, the Bank shall remit the said amount of the fifth instalment to the Buyer’s bank account immediately upon expiry of the said initial ten (10) days validity period of the instruction. In the event of the fifth instalment having been so returned by the Bank to the Buyer, the Buyer shall remit the fifth instalment again to the Bank as laid down in this Paragraph upon receipt of a further notice from the Builder for readiness of the Vessel for delivery.