Common use of Application of the Recovered Amounts Clause in Contracts

Application of the Recovered Amounts. In the event that the Vessel shall be damaged from any insured cause at any time before delivery of the Vessel, and in the further event that such damage shall not constitute an actual or constructive total loss of the Vessel, the amount received in respect of the insurance shall be applied by the Builder in repair of such damage, satisfactory to the Classification requirements, and the Buyer shall accept the Vessel under this Contract and the Specifications, however, subject to the extension of delivery time under Article 8 hereof (except in case of negligence of the Builder). Should the Vessel from any cause become an actual or constructive total loss, the Builder shall either: