Common use of Release of Mortgages Clause in Contracts

Release of Mortgages. If: 17.6.1 the Borrowers make a voluntary prepayment in accorordance with Clause 7.3 (Voluntary Prepayment of Loan) in respect of a certain Tranche; or 17.6.2 the Borrowers make a balloon payment on the Termination Date in respect of a certain Tranche in accordance with Schedule 9, (each a "Payment") the Borrowers may require that the Mortgage(s) over one or more of the Vessels financed by that Tranche and the other Security Documents in respect of such Vessel(s) (but not any Vessels financed by other Tranches) be released after such Payment, provided that (a) the Borrowers notify the Agent of such requirement no later than 10 Business Days prior to the such Payment; (b) the LTV Coverage after such Payment and such release does not exceed the LTV Coverage immediately prior to such payment and release; (c) the LTV Coverage exceeds 133% after such Payment and release; (d) the LTV Coverage for the purpose of this Clause shall be calculated on the basis of the Market Value of the Vessels (as determined by the most recent valuation provided to the Agent pursuant to Clause 20.2.3); and (e) no Default has occurred and is continuing.

Release of Mortgages. If: : 17.6.1 the Borrowers make a voluntary prepayment in accorordance accordance with Clause 7.3 7.2 (Voluntary Prepayment of Loan) in respect of a certain Tranche; or or 17.6.2 the Borrowers make a balloon payment on the Termination Date in respect of a certain Tranche in accordance with Schedule 9, (each a "Payment") the Borrowers may require that the Mortgage(s) over one or more of the Vessels financed by that Tranche and the other Security Documents in respect of such Vessel(s) (but not any Vessels financed by other Tranches) be released after such Payment, provided that that (a) the Borrowers notify the Agent of such requirement no later than 10 Business Days prior to the such Payment; ; (b) the LTV Coverage after such Payment and such release does is not exceed less than the LTV Coverage immediately prior to such payment and release; ; (c) the LTV Coverage exceeds 133% after such Payment and release; ; (d) the LTV Coverage for the purpose of this Clause shall be calculated on the basis of the Market Value of the Vessels (as determined by the most recent valuation provided to the Agent pursuant to Clause 20.2.3); and and (e) no Default has occurred and is continuing.