Common use of Letters of undertaking Clause in Contracts

Letters of undertaking. In relation to all Insurances effected from time to time under and in accordance with this clause 9.5.7, the Borrower shall ensure that all brokers and/or insurers and any protection and indemnity or war risks associations in which the Vessel is entered, in each case being approved under clause 9.5.18, provide the Agent with letters of undertaking: (a) in the case of an approved broker in the form of the L.I.B.C. Recommended Brokers’ Letter of Undertaking of October 1984 or, if such form no longer represents the then current market practice in the insurance market in which the approved broker operates, in such form as the Agent and the Borrower shall agree, having regard to the then current market practice in the insurance market in which the approved broker operates, and any professional association of which that approved broker is a member; and (b) in the case of a protection and indemnity association, having regard to the current market practice and the practices prescribed by the International Group of Protection and Indemnity Associations or, if the relevant protection and indemnity association is not a member of the International Group of Protection and Indemnity Associations but has otherwise been approved by the Agent in accordance with clause 9.5.18, the current practice of that association (and which will for all purposes provide for notification to the Agent prior to the cancellation of any such entry); and (c) in the case of a war risks association, having regard to the current market practice in the insurance market in which such association operates.