Redemption upon Loss of the Mortgaged Rig. If an Event of Loss occurs at any time with respect to the Mortgaged Rig attributable to the Loan, the Company shall apply funds in an amount (the "Loss Redemption Amount") equal to the principal amount of the Loan outstanding on the date (the "Loss Date") on which such Event of Loss was deemed to have occurred, together with all accrued and unpaid interest (including Special Interest, if any, and Additional Amounts, if any) thereon, to the prepayment of the Loan. If an Event of Loss occurs at any time with respect to any Other Mortgaged Rig, the Indenture and the applicable Other Loan Agreement require that the Company shall apply funds to the principal amount of the applicable Other Loan secured by the Other Mortgaged Rig outstanding on the Loss Date for such other Mortgaged Rig, together with all accrued and unpaid interest (including Special Interest, if any, and Additional Amounts, if any) thereon, to the payment of such Other Loan. If a Default under the Indenture shall have occurred and be continuing at the time of the receipt of the Event of Loss Proceeds with respect to such Other Mortgaged Rig, the Indenture requires, and the Company hereby agrees, that it shall prepay the Loan and the remaining Other Loans on a pro rata basis in an aggregate amount equal to the excess of the Net Event of Loss Proceeds over the Loss Redemption Amount, if any, together with all accrued and unpaid interest (including Special Interest, if any, and Additional Amounts, if any) thereon for the Other Loan which is secured by such Other Mortgaged Rig. All payments on the Loan shall be allocated on a pro rata basis between the Tranches and shall be made directly to the Trustee for deposit into the Issuer Escrow Account.
Appears in 20 contracts
Samples: Senior Secured Loan Agreement (R&b Falcon Corp), Senior Secured Loan Agreement (R&b Falcon Corp), Senior Secured Loan Agreement (R&b Falcon Corp)
