Common use of TOTAL LOSSES RELATING TO MORTGAGED LINKSPANS Clause in Contracts

TOTAL LOSSES RELATING TO MORTGAGED LINKSPANS. In the event of a Total Loss relating to any Mortgaged Linkspan the proceeds of insurance claims in respect of such Total Loss shall be paid to the Security Agent in accordance with the relevant Loss Payable Clauses and:- (A) if no Event of Default has occurred and is continuing, such proceeds shall be applied by the Security Agent in or towards payment on behalf of the relevant Shipowner for the purchase of a replacement Linkspan (it being a condition of such payment that the relevant Shipowner execute a Linkspan Mortgage in favour of the Security Agent immediately upon its acquisition of title to such replacement Linkspan and that, to the extent that to do so is consistent with market practice, the Shipowner assign to the Security Agent the benefit of the relevant building contract and any refund guarantee (or provide other security acceptable to the Majority Banks) where any proceeds of the Total Loss are paid over to the manufacturer or supplier of the replacement Linkspan before the relevant Shipowner acquires title thereto); and (B) if an Event of Default has occurred and is continuing, and the Agent has given notice in accordance with Clause 19.2 the Security Agent shall be entitled to apply such proceeds in the manner specified in Clause 11.10.

TOTAL LOSSES RELATING TO MORTGAGED LINKSPANS. In the event of a Total Loss relating to any Mortgaged Linkspan the proceeds of insurance claims in respect of such Total Loss shall shall, subject to the rights of any prior assignee under a Prior Security Document, be paid to the Security Agent in accordance with the relevant Loss Payable Clauses and:- (A) if no Event of Default has occurred and is continuing, such proceeds shall be applied by the Security Agent in or towards payment on behalf of the relevant Shipowner for the purchase of a replacement Linkspan (it being a condition of such payment that the relevant Shipowner execute a Linkspan Mortgage in favour of the Security Agent immediately upon its acquisition of title to such replacement Linkspan and that, to the extent that to do so is consistent with market practice, the Shipowner assign to the Security Agent the benefit of the relevant building contract and any refund guarantee (or provide other security acceptable to the Majority Banks) where any proceeds of the Total Loss are paid over to the manufacturer or supplier of the replacement Linkspan before the relevant Shipowner acquires title thereto); and (B) if an Event of Default has occurred and is continuing, and the Agent has given notice in accordance with Clause 19.2 the Security Agent shall be entitled to apply such proceeds in the manner specified in Clause 11.10.

TOTAL LOSSES RELATING TO MORTGAGED LINKSPANS. In the event of a Total Loss relating to any Mortgaged Linkspan the proceeds of insurance claims in respect of such Total Loss shall be paid to the Security Agent in accordance with the relevant Loss Payable Clauses and:- (A) if no Event of Default has occurred and is continuing, such proceeds shall be applied by the Security Agent in or towards payment on behalf of the relevant Shipowner for the purchase of a replacement Linkspan (it being a condition of such payment that the relevant Shipowner execute a Linkspan Mortgage in favour of the Security Agent immediately upon its acquisition of title to such replacement Linkspan and that, to the extent that to do so is consistent with market practice, the Shipowner assign to the Security Agent the benefit of the relevant building contract and any refund guarantee (or provide other security acceptable to the Majority Banks) where any proceeds of the Total Loss are paid over to the manufacturer or supplier of the replacement Linkspan before the relevant Shipowner acquires title thereto); and (B) if an Event of Default has occurred and is continuing, and the Agent has given notice in accordance with Clause 19.2 15.2 the Security Agent shall be entitled to apply such proceeds in the manner specified in Clause 11.107.10.