Common use of Mandatory prepayment on sale or Total Loss Clause in Contracts

Mandatory prepayment on sale or Total Loss. (a) If a Ship is sold or becomes a Total Loss, the Borrowers shall unless otherwise agreed with the Agent on the Relevant Date prepay the Tranche applicable to that Ship. (b) On the Relevant Date, the Borrowers shall also prepay such part of the Loan as shall eliminate any shortfall arising if the ratio set out in Clause 27 (Security Cover) were applied immediately following the payment referred to in paragraph (a) above but on the basis that the ratio must either (i) be maintained at the Level at which it was immediately prior to such sale or Total Loss or (ii) if, Borrower D (or another Borrower in accordance with Clause 18.6 (Release of Borrower D)) has been released, at 175 per cent. (c) Provided that no Default has occurred and is continuing, any remaining proceeds of the sale or Total Loss of a Ship after the prepayments referred to in paragraph (a) and paragraph (b) above have been made together with all other amounts that are payable on any such prepayment pursuant to the Finance Documents shall be paid to the Borrower that owned the relevant Ship. (d) In this Clause 7.5 (Mandatory prepayment on sale or Total Loss):

Mandatory prepayment on sale or Total Loss. (a) If a Ship is sold (without prejudice to paragraph (a) of Clause 20.12 (Disposals)) or becomes a Total Loss, the Borrowers shall unless otherwise agreed with the Agent on the Relevant Date prepay Relevant Percentage of the Tranche applicable to that ShipLoan. (b) On the Relevant Date, the Borrowers shall also prepay such part of the Loan as shall eliminate any shortfall arising if the ratio set out in Clause 27 24 (Security Cover) were applied immediately following the payment referred to in paragraph (a) above but on the basis that the ratio must either (i) be maintained at the Level at which it was immediately prior to such sale or Total Loss or (ii) if, Borrower D (or another Borrower in accordance with Clause 18.6 (Release of Borrower D)) has been released, at 175 per centabove. (c) Provided that no If an Event of Default has occurred and is continuing, any remaining proceeds of the sale or Total Loss of a Ship after the prepayments prepayment referred to in paragraph (a) and paragraph (b) above have has been made together with all other amounts that are payable on any such prepayment pursuant to the Finance Documents shall be paid by the Borrower that owned the relevant Ship to cure such Event of Default. (d) Provided that no Event of Default has occurred and is continuing, any remaining proceeds of the sale or Total Loss of a Ship after the prepayment referred to in paragraph (a) and paragraph (b) above has been made together with all other amounts that are payable on any such prepayment pursuant to the Finance Documents shall be paid to the Borrower that owned the relevant Ship. (de) In this Clause 7.5 (Mandatory prepayment on sale or Total Loss):

Mandatory prepayment on sale or Total Loss. (a) If a Ship is sold or becomes a Total Loss, the Borrowers shall unless otherwise agreed with the Agent on the Relevant Date Date: (i) cancel the Relevant Percentage of the Revolving Commitments and shall prepay any amount of the Revolving Loan in excess of the Revolving Commitments as so reduced; and (ii) prepay the Tranche applicable to Relevant Percentage of the Accordion Facility, or procure that ShipSecurity over a replacement vessel is provided in accordance with paragraph (f) below. (b) On the Relevant Date, the Borrowers shall also prepay such part of the Loan as shall eliminate any shortfall arising if the ratio set out in Clause 27 29 (Security Cover) were applied immediately following the payment or provision of Security over a replacement vessel (as applicable) referred to in paragraph (a) above but on the basis that the ratio must either (i) be maintained at the Level at which it was immediately prior to such sale or Total Loss or (ii) if, Borrower D (or another Borrower in accordance with Clause 18.6 (Release of Borrower D)) has been released, at 175 per centabove. (c) Provided that no Default has occurred and is continuing, any remaining proceeds of the sale or Total Loss of a Ship after the prepayments referred to in paragraph (a) and paragraph (b) above have been made together with all other amounts that are payable on any such prepayment pursuant to the Finance Documents shall be paid to the Borrower that owned the relevant Ship. (d) In this Clause 7.5 (Mandatory prepayment on sale or Total Loss):