Common use of Subsequent Encumbrances Clause in Contracts

Subsequent Encumbrances. If the Agent receives notice of any subsequent Encumbrance (other than any Permitted Encumbrance) affecting the Vessel or all or any part of the Insurances, Earnings or Requisition Compensation, the Agent may open a new account in its books for the Borrower. If the Agent does not open a new account, then (unless the Encumbrance is a Permitted Encumbrance or the Agent gives written notice to the contrary to the Borrower) as from the time of receipt by the Agent of notice of such subsequent Encumbrance, all payments made to the Agent shall be treated as having been credited to a new account of the Borrower and not as having been applied in reduction of the Lender Indebtedness.

Subsequent Encumbrances. If the Agent receives notice of any subsequent Encumbrance (other than any Permitted EncumbranceEncumbrance permitted by the terms of this Agreement) affecting the Vessel either Vessel, or all or any part of the Insurances, Earnings or Requisition Compensation, the Agent may open a new account in its books for the Borrower. If the Agent does not open a new account, then (unless the Encumbrance is a Permitted Encumbrance permitted by the terms of this Agreement or the Agent gives written notice to the contrary to the Borrower) as from the time of receipt by the Agent of notice of such subsequent Encumbrance, all payments made to the Agent shall be treated as having been credited to a new account of the Borrower and not as having been applied in reduction of the Lender Indebtedness.

Subsequent Encumbrances. If the Agent receives notice of any subsequent Encumbrance (other than any Permitted EncumbranceEncumbrance permitted by the terms of this Agreement) affecting the any Vessel or all or any part of the Insurances, Earnings or Requisition Compensation, the Agent may open a new account in its books for the BorrowerBorrowers. If the Agent does not open a new account, then (unless the Encumbrance is a Permitted Encumbrance permitted by the terms of this Agreement or the Agent gives written notice to the contrary to the BorrowerBorrowers) as from the time of receipt by the Agent of notice of such subsequent Encumbrance, all payments made to the Agent shall be treated as having been credited to a new account of the Borrower Borrowers and not as having been applied in reduction of the Lender Indebtedness.