Common use of Limitation and application of Advances Clause in Contracts

Limitation and application of Advances. 2.3.1 The amount of the Loan shall not exceed USD 126,000,000 and shall be equal to the aggregate of: (a) the lesser of (i) USD17,000,000 and (ii) 50% of the Valuation Amount of Vessel A in respect of Advance A; (b) the lesser of (i) USD17,000,000 and (ii) 50% of the Valuation Amount of Vessel B in respect of Advance B; (c) the lesser of (i) USD44,500,000 and (ii) 60% of the Valuation Amount of Vessel C in respect of Advance C; (d) the lesser of (i) USD47,500,000 and (ii) 60% of the Valuation Amount of Vessel D in respect of Advance D provided that the fourth Advance to be drawn down shall be in an amount of no more than the lesser of (A) the amount relative to that Advance referred to above in this clause 2.3.1 and (B) such amount as, when drawn down, will make the Loan equal to 55% of the aggregate Valuation Amounts of the Mortgaged Vessels at that Drawdown Date. (the Valuation Amount in each case being determined no more than 10 days prior to the relevant Drawdown Date). If an Advance is not drawn in full the undrawn amount shall be cancelled and the amount of each repayment instalment for that Advance shall be reduced proportionately. 2.3.2 Each Advance shall be paid forthwith upon drawdown to such account or accounts as the Borrower shall stipulate in the Drawdown Notice for that Advance.

Limitation and application of Advances. 2.3.1 The 2.5.1 Subject to clauses 5.2.2 and 5.3.3, the principal amount of specified in the Loan shall not exceed USD 126,000,000 and shall be equal relevant Drawdown Notice for borrowing on the relevant Drawdown Date shall, subject to the aggregate ofterms of this Agreement be: (a) in respect of Advance A, USD3,055,000; (b) in respect of Advance B, USD6,180,000; (c) in respect of Advance C, the lesser of (i) USD17,000,000 USD6,000,000 and (ii) 50% of the Valuation Amount of Vessel A C as at the relevant Drawdown Date; (d) in respect of Advance A; (b) D, the lesser of (i) USD17,000,000 USD6,000,000 and (ii) 50% of the Valuation Amount of Vessel B D as at the relevant Drawdown Date; and (e) in respect of Advance B; (c) E, the lesser of (i) USD44,500,000 USD4,000,000 and (ii) 6050% of the Valuation Amount of Vessel C in respect E as at the relevant Drawdown Date. 2.5.2 The amount of each Advance C; (d) shall not exceed the lesser of (i) USD47,500,000 the relevant maximum amount available under such Advance and (ii) 6050% of the Valuation Amount of the relevant Vessel D in respect of Advance D provided that as at the fourth Advance to be drawn down shall be in an relevant Drawdown Date and the amount of no more than the Loan shall not exceed the lesser of (Ai) the amount relative to that Advance referred to above in this clause 2.3.1 twenty five million two hundred and thirty five thousand Dollars (USD25,235,000) and (Bii) such amount as, when drawn down, will make the Loan equal to 5540% of the aggregate Valuation Amounts of the Mortgaged Vessels at that Drawdown Date. (the Valuation Amount in each case being determined no more than 10 days prior to of the relevant Vessels as at the final Drawdown Date). If an Advance is not drawn in full the undrawn amount shall be cancelled and the amount of each repayment instalment for that Advance shall be reduced proportionately. 2.3.2 2.5.3 Each Advance shall be paid forthwith upon drawdown to such account or accounts as the Borrower Borrowers shall stipulate in the relevant Drawdown Notice for that AdvanceNotice.