Common use of Further Novation Events Clause in Contracts

Further Novation Events. Each of the following shall be a Further Novation Event for the purpose of this Agreement: 17.3.1 any Termination Event or Mandatory Prepayment Event occurs prior to the Delivery Date; 17.3.2 the Delivery Date does not occur on or before the Commitment Expiry Date; 17.3.3 if (a) the Ship is rejected by the Lessor upon the request of the Supervisor or (b) the Novated Building Contract is terminated or rescinded for any reason or becomes capable of immediate termination or rescission in accordance with article VIII thereof or (c) consequent upon a total loss of the Ship as envisaged by article XVII of the Novated Building Contract unless the Lessor is satisfied in its reasonable opinion that the Ship can be rebuilt in accordance with the specification by the Commitment Expiry Date or (d) the Builder becomes entitled to terminate or rescind the Novated Building Contract or the Builder purports to rescind or terminate the Novated Building Contract under article XI thereof; 17.3.4 the Lessee fails to pay when due any Contribution Payment due to the Lessor under clause 3.10 of this Agreement; 17.3.5 prior to the Delivery Date the Builder makes a claim against the Lessor under the Novated Building Contract (unless the claim arises as a result of Lessor Misconduct) and: (a) such claim is not settled in a manner acceptable to the Lessor acting reasonably on the earlier of the Delivery Date and the date falling thirty (30) days after the making of that claim; and (b) the Lessor is not secured to its reasonable satisfaction in respect of any Loss it may suffer as a direct result of that claim; 17.3.6 prior to the Delivery Date the Supervisor commences proceedings against the Builder under the Novated Building Contract and the Lessor has not given its consent to such proceedings pursuant to clause 4.9 of the Supervision Agreement; 17.3.7 the Supervisor is in breach of any of its obligations to the Lessor pursuant to the Supervision Agreement or the Supervisor is otherwise acting outside the scope of its authority under the Supervision Agreement in a manner materially detrimental to the rights and interests of the Lessor; 17.3.8 the Refund Guarantor fails to comply with any of its obligations under the Refund Guarantee; or 17.3.9 the conditions precedent to the Lessor’s obligation to make payment of any Instalment or to Delivery are not fulfilled or waived and such failure has, or in the reasonable opinion of the Lessor, is reasonably likely to have a material adverse effect upon the Lessor, or its rights and/or obligations and liabilities in respect of the Ship or under this Agreement and the other Transaction Documents.