RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will: (a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma; (b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled; (c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig; (d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time; (e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage; (f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof; (g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections; (h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require; (i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require; (j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her; (k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of: (i) any casualty to the Rig which is or is likely to be a Major Casualty, and (ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and (iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and (iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and (v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and (vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee; (l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress; (m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis; (n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise; (o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 2 contracts
Samples: Mortgage Agreement (Reading & Bates Corp), Mortgage Agreement (Reading & Bates Corp)
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Xxx Xxxxxxx Xxxx Xxxxxxx Xxxxxxxx Xxxxxx Xxxxxx Dollars (XX$0,000,000US$2,500,000) (xx xxx xxxxxxxxxx xx xxx or the equivalent in any other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating M Column Stabilized Drilling UnitUnit Ice Strengthening Class IC) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling UnitBarge) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Dxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:will:-
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Column Stabilized Drilling UnitUnit with Ice Strengthening Class 1C) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the Trustee's request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:of:-
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the Trustee's prior written consent of the Trusteeconsent;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Statex Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx any other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:will:-
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:of:-
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Statxx Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx any other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Indenture Trustee that throughout the Credit Facility Period the Owner will:will:-
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Indenture Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling UnitA1) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Indenture Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Indenture Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Indenture Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Indenture Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Indenture Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the Indenture Trustee's request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Indenture Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:of:-
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Indenture Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Indenture Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Indenture Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Indenture Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(mi) observe the obligations contained in Sections 7 and 8 Clause 12 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis; and
(ii) not without the previous written consent of the Indenture Trustee de-activate or lay up the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned);
(n) not without the previous consent in writing of the Indenture Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two One Million Five Hundred Thousand United States Doxxxxx Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx in any other currency) unless such person shall first have given to the Indenture Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Indenture Trustee from time to time such proof as the Indenture Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the th e Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Dxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:will:-
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling UnitBarge) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:of:-
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Statxx Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx any other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Indenture Trustee that throughout the Credit Facility Period the Owner will:will:-
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Indenture Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling UnitA1) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Indenture Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Indenture Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Indenture Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Indenture Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Indenture Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the Indenture Trustee's request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Indenture Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:of:-
(i) any casualty to the Rig which is or is likely to be a Major Casualty, and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Indenture Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Indenture Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Indenture Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Indenture Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(mi) observe the obligations contained in Sections 7 and 8 Clause 12 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis; and
(ii) not without the previous written consent of the Indenture Trustee de-activate or lay up the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned);
(n) not without the previous consent in writing of the Indenture Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx Xxxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx in any other currency) unless such person shall first have given to the Indenture Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Indenture Trustee from time to time such proof as the Indenture Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
RIG COVENANTS. 7.01 The Owner covenants with the Trustee that throughout the Credit Facility Period the Owner will:
(a) maintain its existence as a corporation in good standing duly organized under the laws of the State of Oklahoma;
(b) keep the Rig documented in its name as a United States vessel and to do or allow to be done nothing whereby such documentation may be forfeited or imperilled;
(c) not without the previous consent in writing of the Trustee, change the name of the Rig or make any modification to the Rig which would or might materially alter the structure or type or reduce the performance characteristics of the Rig or materially reduce the value of the Rig;
(d) keep the Rig in a good and efficient state of repair consistent with the ownership and operating practices of first-class rig owners and operators so as to maintain her present class (namely +A1 Self-Elevating Drilling Unit) at the American Bureau of Shipping free of recommendations and qualifications and change of class, save those notified to and approved in writing by the Trustee and so as to comply with all laws, regulations and requirements (statutory or otherwise) from time to time applicable to vessels documented under the laws and flag of the United States and applicable to vessels trading to any jurisdiction to which the Rig may, subject to the provisions of this Mortgage, trade from time to time;
(e) procure that all repairs to or replacement of any damaged, worn or lost parts or equipment be effected in such manner (both as regards workmanship and quality of materials) as to not diminish the value of the Rig and not to remove any material part of, or item of equipment installed on, the Rig unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than Permitted Liens) in favor of any person other than the Trustee and becomes on installation on the Rig the property of the Owner and subject to the security constituted by this Mortgage;
(f) submit the Rig to such periodical or other surveys as may be required for classification purposes and if so required to supply to the Trustee and the Administrative Agent copies of all survey reports issued in respect thereof;
(g) permit the representatives of the Administrative Agent or independent surveyors representing the Trustee to board the Rig at all reasonable times and upon reasonable notice for the purpose of inspecting her condition or for the purpose of satisfying themselves in regard to proposed or executed repairs and to afford all proper facilities for such inspections;
(h) promptly pay and discharge all debts, damages and liabilities whatsoever which have given or may give rise to maritime or possessory liens (other than Permitted Liens) on or claims enforceable against the Rig and all tolls, dues, taxes, assessments, governmental charges, fines and penalties lawfully charged on or in respect of the Rig and all other outgoings expenses whatsoever in respect of the Rig and in the event of arrest of the Rig pursuant to legal process, or in the event of her detention in exercise or purported exercise of any such lien or claim as aforesaid, procure the release of the Rig from such arrest or detention forthwith upon receiving notice thereof by providing bail or otherwise as the circumstances may require;
(i) not employ the Rig or allow her employment in any trade or business which is unlawful under the laws of any relevant jurisdiction or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to destruction, seizure or confiscation and in the event of hostilities in any part of the world (whether war be declared or not) not employ the Rig or suffer her employment in carrying any contraband goods or to enter or trade to any zone which is declared a war zone by any government or by the war risks insurers of the Rig unless there shall have been effected by the Owner (at its expense) such special, additional or modified insurance cover as the Administrative Agent may require;
(j) promptly furnish to the Trustee all such information as it may from time to time require regarding the Rig, her employment, position and engagements, particulars of all towages and salvages and, upon the request of the Trustee in writing, copies of all charters and other contracts for her employment or otherwise howsoever concerning her;
(k) notify both the Trustee and the Administrative Agent forthwith by telex or telecopy thereafter confirmed by letter of:
(i) any casualty to the Rig which is or is likely to be a Major Casualty, ; and
(ii) any occurrence in consequence whereof the Rig has become or is, by the passing of time or otherwise, likely to become a Total Loss, ; and
(iii) any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with, ; and
(iv) any arrest of the Rig or the exercise or purported exercise of any lien on the Rig or any requisition of the Rig for hire, ; and
(v) any intended dry docking of the Rig, as to which the Owner shall give the Trustee ten (10) days prior notice, provided, that in the event of any emergency dry docking of the Rig, the Owner shall immediately notify the Trustee; and
(vi) any intended deactivation or lay-up of the Rig (other than for normal periods of inactivity between contracts for the Rig during which periods the Rig remains manned) and obtain the prior written consent of the Trustee;
(l) keep proper books of account in respect of the Rig and as and when the Trustee or the Administrative Agent may so reasonably require make such books available for inspection on behalf of the Trustee and furnish satisfactory evidence that the wages and allotments and the insurance of the master and crew are being regularly paid and that all deductions from crew's wages in respect of tax and/or social security liability are being properly accounted for and that the master has no claim for disbursements other than those incurred by him in the ordinary course of trading on the voyage then in progress;
(m) observe the obligations contained in Sections 7 and 8 of the Credit Agreement which apply to the Rig and the Owner, and in pursuance thereof such obligations shall be incorporated in and deemed to form part of this Mortgage mutatis mutandis;
(n) not without the previous consent in writing of the Trustee (such consent not to be unreasonably withheld), put the Rig into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed Two Million Five Hundred Thousand United States Doxxxxx (XX$0,000,000) (xx xxx xxxxxxxxxx xx xxx other currency) unless such person shall first have given to the Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on the Rig for the cost of such work or otherwise;
(o) comply with and satisfy all the requirements and formalities established by the Ship Mortgage Act and any other pertinent legislation of the United States to perfect this Mortgage as a legal, valid and enforceable first and preferred lien upon the Rig and promptly to furnish to the Trustee from time to time such proof as the Trustee may request for its satisfaction with respect to the Owner's compliance with the provisions of this sub-clause;
Appears in 1 contract
