Common use of Mandatory Loss Prepayment Clause in Contracts

Mandatory Loss Prepayment. Subject to Article XVII of the Agreement, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner shall promptly give notice thereof to the Administrator. (b) The Shipowner shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator within three (3) Business Days after receipt by the Shipowner. (c) Within three (3) Business Days after receipt by the Administrator of the amounts referred to in Subsection (b) above, the Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Administrator, and, within three (3) Business Days of such verification by the Administrator, the Shipowner shall deposit with the Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator pursuant to Subsection (b) above. (d) After the Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default (A) within five (5) Business Days after receipt by the Administrator of the funds referred to in Subsections (b) and (c) above, the Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Administrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner shall pay to the Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; (C) on the Intended Payment Date, the Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; and (D) the balance, if any, shall be promptly paid by the Administrator to the Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Administrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of the Agreement or if the Administrator shall have assumed the Shipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreement; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of the Agreement, such amounts shall be paid by the Administrator to the Shipowner. Provided that, notwithstanding the foregoing, the Shipowner shall not be required to pay the Administrator any amount which the Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Subject to Article XVII of the Agreement, upon Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner Mortgagor shall promptly give notice thereof to the AdministratorMortgagee. (b) The Shipowner Mortgagor shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator Mortgagee within three (3) Business Days after receipt by the ShipownerMortgagor. (c) Within three (3) Business Days after receipt by the Administrator Mortgagee of the amounts referred to in Subsection (b) above, the Shipowner Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the AdministratorMortgagee, and, and within three (3) Business Days of such verification by the AdministratorMortgagee, the Shipowner Mortgagor shall deposit with the Administrator Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator Mortgagee pursuant to Subsection (b) above. (d) After the Administrator Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default Default, (A) within five (5) Business Days after receipt by the Administrator Mortgagee of the funds referred to in Subsections (b) and (c) above, the Shipowner Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the AdministratorMortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; , (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner Mortgagor shall pay to the Administrator Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; , (C) on the Intended Payment Date, the Administrator Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; , and (D) the balance, if any, shall be promptly paid by the Administrator Mortgagee to the Shipowner Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d)Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the AdministratorMortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of Annex C of the Agreement or if the Administrator Mortgagee shall have assumed the ShipownerMortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreement5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of Annex C of the Agreement, such amounts shall be paid by the Administrator Mortgagee to the ShipownerMortgagor. Provided that, notwithstanding the foregoing, the Shipowner Mortgagor shall not be required to pay the Administrator Mortgagee any amount which the Administrator Mortgagee agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Subject to Article XVII of the Agreementhereof, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner shall promptly give notice thereof to the Administrator. (b) The Shipowner shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator within three (3) Business Days after receipt by the Shipowner. (c) Within three (3) Business Days after receipt by the Administrator of the amounts referred to in Subsection (b) above, the Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Administrator, and, within three (3) Business Days of such verification by the Administrator, the Shipowner shall deposit with the Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator pursuant to Subsection (b) above. (d) After the Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default (A) within five (5) Business Days after receipt by the Administrator of the funds referred to in Subsections (b) and (c) above, the Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Administrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner shall pay to the Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; (C) on the Intended Payment Date, the Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; and (D) the balance, if any, shall be promptly paid by the Administrator to the Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of the Agreementhereof, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Administrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of the Agreement hereof or if the Administrator shall have assumed the Shipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreementhereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of the Agreementhereof, such amounts shall be paid by the Administrator to the Shipowner. Provided that, notwithstanding the foregoing, the Shipowner shall not be required to pay the Administrator any amount which the Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Subject to Article XVII of the Agreementhereof, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner shall promptly give notice thereof to the Administrator. (b) The Shipowner shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator within three (3) Business Days after receipt by the Shipowner. (c) Within three (3) Business Days after receipt by the Administrator of the amounts referred to in Subsection (b) above, the Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Administrator, and, within three (3) Business Days of such verification by the Administrator, the Shipowner shall deposit with the Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator pursuant to Subsection (b) above. (d) After the Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default (A) within five (5) Business Days after receipt by the Administrator of the funds referred to in Subsections (b) and (c) above, the Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Administrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner shall pay to the Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; (C) on the Intended Payment Date, the Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; and (D) the balance, if any, shall be promptly paid by the Administrator to the Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of the Agreementhereof, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Administrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of the Agreement hereof or if the Administrator shall have assumed the Shipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreementhereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(12.04(a), (2b), or (4d) of the Agreementhereof, such amounts shall be paid by the Administrator to the Shipowner. Provided that, notwithstanding the foregoing, the Shipowner shall not be required to pay the Administrator any amount which the Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Subject to Article XVII of the Agreement, upon Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner Mortgagor shall promptly give notice thereof to the AdministratorMortgagee. (b) The Shipowner Mortgagor shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator Mortgagee within three (3) Business Days after receipt by the ShipownerMortgagor. (c) Within three (3) Business Days after receipt by the Administrator Mortgagee of the amounts referred to in Subsection (b) above, the Shipowner Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the AdministratorMortgagee, and, and within three (3) Business Days of such verification by the AdministratorMortgagee, the Shipowner Mortgagor shall deposit with the Administrator Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator Mortgagee pursuant to Subsection (b) above. (d) After the Administrator Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default Default, (A) within five (5) Business Days after receipt by the Administrator Mortgagee of the funds referred to in Subsections (b) and (c) above, the Shipowner Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the AdministratorMortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; , (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner Mortgagor shall pay to the Administrator Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; , (C) on the Intended Payment Date, the Administrator Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; , and (D) the balance, if any, shall be promptly paid by the Administrator Mortgagee to the Shipowner Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d)Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the AdministratorMortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of Annex C of the Agreement or if the Administrator Mortgagee shall have assumed the ShipownerMortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreement5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(12.04(a), (2), b) or (4d) of Annex C of the Agreement, such amounts shall be paid by the Administrator Mortgagee to the ShipownerMortgagor. Provided that, notwithstanding the foregoing, the Shipowner Mortgagor shall not be required to pay the Administrator Mortgagee any amount which the Administrator Mortgagee agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Subject to Article XVII of the Agreement, upon Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Shipowner Mortgagor shall promptly give notice thereof to the AdministratorMortgagee. (b) The Shipowner Mortgagor shall pay all amounts it receives by reason of such Loss Event up to the amount of the principal amount of the Note then Outstanding to the Administrator Mortgagee within three (3) Business Days after receipt by the ShipownerMortgagor. (c) Within three (3) Business Days after receipt by the Administrator Mortgagee of the amounts referred to in Subsection (b) above, the Shipowner Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the AdministratorMortgagee, and, and within three (3) Business Days of such verification by the AdministratorMortgagee, the Shipowner Mortgagor shall deposit with the Administrator Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Administrator Mortgagee pursuant to Subsection (b) above. (d) After the Administrator Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default Default, (A) within five (5) Business Days after receipt by the Administrator Mortgagee of the funds referred to in Subsections (b) and (c) above, the Shipowner Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the AdministratorMortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder; , (B) one (1) Business Day prior to the Intended Payment Date, the Shipowner Mortgagor shall pay to the Administrator Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election; , (C) on the Intended Payment Date, the Administrator Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and Clause clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice; , and (D) the balance, if any, shall be promptly paid by the Administrator Mortgagee to the Shipowner Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection (d)Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the AdministratorMortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of Annex C of the Agreement or if the Administrator Mortgagee shall have assumed the ShipownerMortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 14.04 of the Agreement5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of the Agreement, such amounts shall be paid by the Administrator to the Shipowner. Provided that, notwithstanding the foregoing, the Shipowner shall not be required to pay the Administrator any amount which the Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.