Common use of Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking Clause in Contracts

Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking. With respect to hull and machinery, war risk and increased value coverage, the Borrower in respect of each Mortgaged Vessel bareboat chartered by it shall ensure that the brokers for such coverage provide IFC with true and correct copies of (i) all cover notes and/or certificates of entry and, if requested by IFC, pro forma copies of all policies relating to such insurances which they are to effect or renew and (ii) a letter or letters of undertaking in a form acceptable to IFC and provided that this is not inconsistent with market practice such letter or letters of undertaking shall include undertakings by such brokers that: (A) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in an agreed form and complying with the provisions of paragraph (c)(ii) of Annex C; (B) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (C) they will advise IFC and/or the Security Trustee immediately of any material change to the terms of the obligatory insurances; (D) they will notify IFC and/or the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify IFC and/or the Security Trustee of the terms of the instructions; and (E) they will not set off against any sum recoverable in respect of a claim relating to such Mortgaged Vessel under such obligatory insurances any premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for other insurances, they waive any lien on the policies relating to such Mortgaged Vessel or, any sums received under them, which they might have in respect of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and they will not cancel such obligatory insurances by reason of non-payment of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and will arrange for a separate policy to be issued in respect of that Mortgaged Vessel forthwith upon being so requested by IFC and/or the Security Trustee.

Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking. With respect to hull and machinery, war risk and increased value coverage, the Borrower in respect of each Mortgaged Vessel bareboat chartered by it shall ensure that the brokers for such coverage provide IFC OFID with true and correct copies of (i) all cover notes and/or certificates of entry and, if requested by IFCOFID, pro forma copies of all policies relating to such insurances which they are to effect or renew and (ii) a letter or letters of undertaking in a form acceptable to IFC OFID and provided that this is not inconsistent with market practice such letter or letters of undertaking shall include undertakings by such brokers that: (A) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in an agreed form and complying with the provisions of paragraph (c)(ii) of Annex C; (B) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (C) they will advise IFC OFID and/or the Security Trustee immediately of any material change to the terms of the obligatory insurances; (D) they will notify IFC OFID and/or the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify IFC OFID and/or the Security Trustee of the terms of the instructions; and (E) they will not set off against any sum recoverable in respect of a claim relating to such Mortgaged Vessel under such obligatory insurances any premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for other insurances, they waive any lien on the policies relating to such Mortgaged Vessel or, any sums received under them, which they might have in respect of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and they will not cancel such obligatory insurances by reason of non-payment of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and will arrange for a separate policy to be issued in respect of that Mortgaged Vessel forthwith upon being so requested by IFC OFID and/or the Security Trustee.

Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking. With respect to hull and machinery, war risk and increased value coverage, each of the Borrower Borrowers in respect of each Mortgaged Vessel bareboat chartered owned by it shall ensure that the brokers for such coverage provide IFC OFID with true and correct copies of (i) all cover notes and/or certificates of entry and, if requested by IFCOFID, pro forma copies of all policies relating to such insurances which they are to effect or renew and (ii) a letter or letters of undertaking in a form acceptable to IFC OFID and provided that this is not inconsistent with market practice such letter or letters of undertaking shall include undertakings by such brokers that: (A) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in an agreed form and complying with the provisions of paragraph (c)(ii) of Annex C; (B) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (C) they will advise IFC OFID and/or the Security Trustee immediately of any material change to the terms of the obligatory insurances; (D) they will notify IFC OFID and/or the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the such Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify IFC OFID and/or the Security Trustee of the terms of the instructions; and (E) they will not set off against any sum recoverable in respect of a claim relating to such Mortgaged Vessel under such obligatory insurances any premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for other insurances, they waive any lien on the policies relating to such Mortgaged Vessel or, any sums received under them, which they might have in respect of premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for such other insurances, and they will not cancel such obligatory insurances by reason of non-payment of premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for such other insurances, and will arrange for a separate policy to be issued in respect of that Mortgaged Vessel forthwith upon being so requested by IFC OFID and/or the Security Trustee.

Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking. With respect to hull and machinery, war risk and increased value coverage, each of the Borrower Borrowers in respect of each Mortgaged Vessel bareboat chartered owned by it shall ensure that the brokers for such coverage provide IFC with true and correct copies of (i) all cover notes and/or certificates of entry and, if requested by IFC, pro forma copies of all policies relating to such insurances which they are to effect or renew and (ii) a letter or letters of undertaking in a form acceptable to IFC and provided that this is not inconsistent with market practice such letter or letters of undertaking shall include undertakings by such brokers that: (A) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in an agreed form and complying with the provisions of paragraph (c)(ii) of Annex C; (B) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (C) they will advise IFC and/or the Security Trustee immediately of any material change to the terms of the obligatory insurances; (D) they will notify IFC and/or the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the such Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify IFC and/or the Security Trustee of the terms of the instructions; and (E) they will not set off against any sum recoverable in respect of a claim relating to such Mortgaged Vessel under such obligatory insurances any premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for other insurances, they waive any lien on the policies relating to such Mortgaged Vessel or, any sums received under them, which they might have in respect of premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for such other insurances, and they will not cancel such obligatory insurances by reason of non-payment of premiums or other amounts due to them or any other Person in respect of any Vessel vessel not subject to a Mortgage or premiums due for such other insurances, and will arrange for a separate policy to be issued in respect of that Mortgaged Vessel forthwith upon being so requested by IFC and/or the Security Trustee.

Hull and Machinery, War Risk and Increased Value Coverage; Letters of Undertaking. With respect to hull and machinery, war risk and increased value coverage, the each Borrower in respect of each that owns a Mortgaged Vessel bareboat chartered by it shall ensure that the brokers for such coverage provide IFC with true and correct copies of (i) all cover notes and/or certificates of entry and, if requested by IFC, pro forma copies of all policies relating to such insurances which they are to effect or renew and (ii) a letter or letters of undertaking in a form acceptable to IFC and provided that this is not inconsistent with market practice such letter or letters of undertaking shall include undertakings by such brokers that: (A) they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment in an agreed form and complying with the provisions of paragraph (c)(ii) of Annex C; (B) they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; (C) they will advise IFC and/or the Security Trustee immediately of any material change to the terms of the obligatory insurances; (D) they will notify IFC and/or the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from the relevant Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify IFC and/or the Security Trustee of the terms of the instructions; and (E) they will not set off against any sum recoverable in respect of a claim relating to such Mortgaged Vessel under such obligatory insurances any premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for other insurances, they waive any lien on the policies relating to such Mortgaged Vessel or, any sums received under them, which they might have in respect of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and they will not cancel such obligatory insurances by reason of non-payment of premiums or other amounts due to them or any other Person in respect of any Vessel not subject to a Mortgage or premiums due for such other insurances, and will arrange for a separate policy to be issued in respect of that Mortgaged Vessel forthwith upon being so requested by IFC and/or the Security Trustee.