Common use of Approved Flag Clause in Contracts

Approved Flag. The country of the Approved Flag under which the Vessel is registered becomes involved in hostilities or civil war or there is a seizure of power by unconstitutional means if, in any such case, such event has or is reasonably likely to have a Material Adverse Effect, unless the Vessel is registered under another Approved Flag within ninety (90) days after the Lender has given notice thereof to the Obligors.