Common use of SALE OF SHIPS ON CREDIT TERMS Clause in Contracts

SALE OF SHIPS ON CREDIT TERMS. Where a Shipowner sells its Mortgaged Ship on Credit Terms, the relevant Shipowner shall before completion of the sale (in the case of a credit sale) or delivery of the Ship to the relevant charterer (in the case of a hire purchase or conditional sale) execute and deliver to the Security Agent an assignment in substantially the form of the Receivables Assignment of the amounts receivable in respect of the sale or letting of the Ship and all security granted to such Shipowner in respect of the obligation of the buyer to pay the outstanding balance of the purchase price or rentals and the option price under any relevant hire purchase agreement in respect of such Ship. Where the Ship is sold pursuant to a credit sale or other arrangement under which the purchaser acquires title to the Ship, such security shall in any event include either:-