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:- (i) a first priority mortgage in favour of the seller of the Ship constituted under the laws of an Approved Flag State and a first priority assignment in favour of the seller of the Insurances of the Ship which shall be placed on terms which are not materially less favourable to the seller than the terms set out in the form of Deed of Covenant in Schedule 6 to the Agreed Form Certificate in the case of mortgage covenants and the terms set out in Schedule 10 to the Agreed Form Certificate in the case of an Insurance Assignment; or (ii) a bank guarantee from a first class international bank guaranteeing to the seller of the Ship repayment of the full amount of the deferred consideration for the sale of the Ship. The Borrowers and Stena AB shall procure that without the consent of the Banks no Ship is sold on Credit Terms for a consideration the principal or capital amount of which is less than the sale value that would be obtained at the time the Ship is sold in an arm's-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy;

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:- (i) a first priority mortgage in favour of the seller of the Ship constituted under the laws of an Approved Flag State and a first priority assignment in favour of the seller of the Insurances of the Ship which shall be placed on terms which are not materially less favourable to the seller than the terms set out in the form of Deed of Covenant in Schedule 6 7 to the Agreed Form Certificate in the case of mortgage covenants and the terms set out in Schedule 10 to the Agreed Form Certificate in the case of an Insurance Assignment; or (ii) a bank guarantee from a first class international bank guaranteeing to the seller of the Ship repayment of the full amount of the deferred consideration for the sale of the Ship. The Borrowers Borrower and Stena AB shall procure that without the consent of the Banks no Ship is sold on Credit Terms for a consideration the principal or capital amount of which is less than the sale value that would be obtained Fair Market Value of the Ship at the time the Ship is sold in an arm's-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy;sold.

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:- (i) a first priority mortgage in favour of the seller of the Ship constituted under the laws of an Approved Flag State and a first priority assignment in favour of the seller of the Insurances of the Ship which shall be placed on terms which are not materially less favourable to the seller than the terms set out in the form of Deed of Covenant in Schedule 6 to the Agreed Form Certificate 11.1 in the case of mortgage covenants and the terms set out in Schedule 10 to the Agreed Form Certificate 9 in the case of an Insurance Assignment; or (ii) a bank guarantee from a first class international bank guaranteeing to the seller of the Ship repayment of the full amount of the deferred consideration for the sale of the Ship. The Borrowers Borrower and Stena AB shall procure that without the consent of the Banks no Ship is sold on Credit Terms for a consideration the principal or capital amount of which is less than the sale value that would be obtained Fair Market Value of the Ship at the time the Ship is sold in an arm's-length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer under no compulsion to buy;sold.