Common use of Notification of defaults (etc) Clause in Contracts

Notification of defaults (etc). The Borrowers shall promptly notify the Agent, upon becoming aware of the same, of: (i) the occurrence of an Event of Default or of any Potential Event of Default or any other event (including any litigation) which might adversely affect its ability or the Time Charterer’s ability to perform its obligations under the Time Charter, the Time Charter Guarantor’s ability to perform its obligations (if any) under the Time Charter, the Time Charterer’s or the Sub-Time Charterer’s ability to perform its obligations under the Sub-Time Charter, or any Security Party’s ability to perform its obligations under each Finance Document to which it is or is to become a party; (ii) any default, or any interruption in the performance whether or not the same constitutes a default, by any party to the Time Charter or the Sub-Time Charter; and (iii) any damage or injury caused by or to the Ship in excess of $1,500,000.