Common use of Monthly retentions Clause in Contracts

Monthly retentions. The Borrowers undertake with each Creditor Party to ensure that, on and from the date falling one month after the Drawdown Date and at monthly intervals thereafter during the Security Period, there are transferred to the Retention Account out of the Earnings received in the relevant Earnings Account during the preceding month: (a) one-third of the amount of the relevant Instalment falling due under Clause 8.1 on the next Repayment Date; and (b) the relevant fraction of the aggregate amount of interest which is payable on the next due date for payment of interest under this Agreement, and the Borrowers irrevocably authorise the Agent to make those transfers (in its sole discretion and without any obligation) if the Borrowers fail to do so. The “relevant fraction”, in relation to paragraph (b), is a fraction of which the numerator is 1 and the denominator the number of months comprised in the then current Interest Period (or if the current Interest Period ends after the next due date for payment of interest under this Agreement, the number of months from the later of the commencement of the current Interest Period or the last due date for payment of interest to the next due date for payment of interest under this Agreement).

Monthly retentions. The Borrowers undertake Borrower undertakes with each Creditor Party to ensure that, on and from the date falling one month after the Drawdown Date and at monthly intervals thereafter during the Security Period, there are transferred in respect of each Advance drawn on the Drawdown Date to the Retention Account out of the Earnings received in the relevant Earnings Account during the preceding month: (a) one-third of the amount of the relevant Repayment Instalment falling due under Clause 8.1 on the next Repayment Date; and (b) the relevant fraction of the aggregate amount of interest on the Loan which is payable on the next due date for payment of interest under this Agreement, and the Borrowers Borrower irrevocably authorise authorises the Agent to make those transfers (in its sole discretion and without any obligation) if the Borrowers fail Borrower fails to do so. The “relevant fraction”, in relation to paragraph (b), is a fraction of which the numerator is 1 and the denominator the number of months comprised in the then current Interest Period (or if the current Interest Period ends after the next due date for payment of interest under this Agreement, the number of months from the later of the commencement of the current Interest Period or the last due date for payment of interest to the next due date for payment of interest under this Agreement).

Monthly retentions. The Borrowers undertake Each Borrower undertakes with each Creditor Party the Lender to ensure that, throughout the Security Period commencing on and from the date falling one month after the Drawdown Date of the Delivery Advance for the first Ship to be delivered and at monthly intervals thereafter during on the Security Periodsame day in each subsequent month, there are is transferred to the Retention Account out of the Earnings received in the relevant Earnings Account Accounts during the preceding calendar month: (a) one-third of the aggregate amount of the relevant Instalment repayment instalments falling due under Clause 8.1 7.1 on the next Repayment Date; and (b) the relevant fraction of the aggregate amount of interest accruing on the Loan which is payable on the next due date for payment of interest under this Agreement, and Agreement (increased or reduced to the Borrowers irrevocably authorise the Agent extent necessary to make those transfers (in its sole discretion and without any obligation) if the Borrowers fail to do sotake account of all Designated Transactions then operative). The “relevant fraction”, in relation to paragraph (b), ” is a fraction of which the numerator is 1 one and the denominator the number of months comprised in the then current Interest Period (or or, if the current Interest Period ends after the next due date for payment of interest under this Agreementperiod is shorter, the number of months from the later of the commencement of the current Interest Period or the last due date for payment of interest to the next due date for payment of interest under this Agreement).