Security imperilled; flag instability Clause Samples

Security imperilled; flag instability. (a) Subject to the Legal Reservations, any Security created or intended to be created by a Finance Document is in any way imperilled or in jeopardy. (b) The state of the Approved Flag of the Vessel is or becomes involved in hostilities or civil war or there is a seizure of power in such state by unconstitutional means, or any other event occurs in relation to the Vessel, the Mortgage or the Approved Flag and in the reasonable opinion of the Facility Agent such event is likely to have a Material Adverse Effect unless the Borrower, within 14 days of the occurrence of such event (or such longer period as may be agreed by the Facility Agent acting with the authorisation of all of the Lenders) re-registers the Vessel on an alternative flag approved pursuant to Clause 24.2 (Vessel’s names and registration) and subject to: (i) the Vessel remaining subject to Security created by a first priority or preferred ship mortgage on the Vessel and, if appropriate, a first priority deed of covenant collateral to that mortgage (or equivalent first priority security) on substantially the same terms as the Mortgage and if applicable, a Deed of Covenant and on such other terms and in such other form as the Facility Agent, acting with the authorisation of all of the Lenders, shall reasonably approve or require; and (ii) the execution of such other documentation amending and supplementing the Finance Documents, as the Facility Agent, acting with the authorisation of all of the Lenders, shall reasonably approve or require.