Sale of Ship after Total Loss Clause Samples
The 'Sale of Ship after Total Loss' clause defines the procedures and rights related to selling a vessel that has been declared a total loss. Typically, this clause outlines who is entitled to sell the ship, how the proceeds from the sale are to be distributed, and any notification or approval requirements that must be met before the sale occurs. For example, it may specify that the insurer or owner has the authority to dispose of the wreck and that any salvage value is credited against insurance claims. The core function of this clause is to provide a clear process for handling the remains of a lost vessel, ensuring that all parties understand their rights and obligations, and preventing disputes over the disposition and value of the ship after a total loss event.
Sale of Ship after Total Loss. If the insurers of the Ship have:
14.7.1 satisfied or admitted in full their obligations under the Insurances; and
14.7.2 waived any rights they have in the Ship, the Lessor shall as soon as practicable after the Total Loss Payment Date use all reasonable endeavours to sell the Ship and such sale shall, save for the foregoing obligation as to timing, be concluded in accordance with the provisions of clause 2.9.