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Common use of Security shortfall Clause in Contracts

Security shortfall. If, at any time after the Drawdown Date of the first Delivery Advance to be drawn down, the Security Value shall be less than the Security Requirement, the Bank may give notice to the Borrowers requiring that such deficiency be remedied and then the Borrowers shall at its discretion either: (a) prepay within a period of fourteen (14) days of the date of receipt by the Borrowers of the Bank’s said notice such sum in Dollars as will result in the Security Requirement after such prepayment (taking into account any other repayment made in accordance with clause 4.1 between the date of the notice and the date of such prepayment) being at least equal to the Security Value; or (b) within fourteen (14) days of the date of receipt by the Borrowers of the Bank’s said notice constitute to the satisfaction of the Bank such further security for the Loan as shall be acceptable to the Bank having a value for security purposes (as determined by the Bank in its discretion) at the date upon which such further security shall be constituted which, when added to the Security Value, shall not be less than the Security Requirement as at such date. The provisions of clauses 4.4 and 4.5 shall apply to prepayments made under clause 8.2.1(a).

Appears in 3 contracts

Samples: Loan Agreement (Aegean Marine Petroleum Network Inc.), Loan Agreement (Aegean Marine Petroleum Network Inc.), Loan Agreement (Aegean Marine Petroleum Network Inc.)

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Security shortfall. If, If at any time on or after the first Drawdown Date of the first Delivery Advance to be drawn down, the Security Value shall be less than the relevant Security Requirement, the Bank Agent may give notice to the Borrowers Borrower requiring that such deficiency be remedied and then the Borrowers Borrower shall at its discretion (unless a Ship has become a Total Loss) either: (a) prepay within a period of fourteen fifteen (1415) days of the date of receipt by the Borrowers Borrower of the BankAgent’s said notice such sum in Dollars as will result in the Security Requirement after such prepayment (taking into account any other repayment of the Loan made in accordance with clause 4.1 between the date of the notice and the date of such prepayment) being at least equal to the Security Value; or (b) within fourteen thirty (1430) days of the date of receipt by the Borrowers Borrower of the BankAgent’s said notice constitute to the satisfaction of the Bank Banks such further security for the Loan as shall be acceptable to the Bank Banks having a value for security purposes (as determined by the Bank Banks in its their absolute discretion) at the date upon which such further security shall be constituted which, when added to the Security Value, shall not be less than the Security Requirement as at such date. The provisions of clauses 4.4 and 4.5 Clause 4.6 shall apply to prepayments made under clause 8.2.1(a).

Appears in 2 contracts

Samples: Facilities Agreement (Aries Maritime Transport LTD), Facilities Agreement (Omega Navigation Enterprises, Inc.)

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Security shortfall. If, at any time after the Drawdown Date of the first Delivery Advance to be drawn down, down the Security Value shall be less than the Security Requirement, the Bank may give notice to the Borrowers requiring that such deficiency be remedied and then the Borrowers shall at its discretion either: (a) prepay within a period of fourteen (14) days of the date of receipt by the Borrowers of the Bank’s said notice such sum in Dollars as will result in the Security Requirement after such prepayment (taking into account any other repayment made in accordance with clause 4.1 between the date of the notice and the date of such prepayment) being at least equal to the Security Value; or (b) within fourteen (14) days of the date of receipt by the Borrowers of the Bank’s said notice constitute to the satisfaction of the Bank such further security for the Loan as shall be acceptable to the Bank having a value for security purposes (as determined by the Bank in its discretion) at the date upon which such further security shall be constituted which, when added to the Security Value, shall not be less than the Security Requirement as at such date. The provisions of clauses 4.4 and 4.5 shall apply to prepayments made under clause 8.2.1(a).

Appears in 1 contract

Samples: Loan Agreement (Aegean Marine Petroleum Network Inc.)

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