Common use of Before first drawdown Clause in Contracts

Before first drawdown. On a Borrower’s Ship becoming a Total Loss (or suffering damage or being involved in an incident which, in the opinion of the Agent, may result in such Ship subsequently being determined to be a Total Loss) or on or prior the date falling immediately prior to the completion of the novation, transfer or assignment of any Contract by the relevant Borrower in favour of another person (with the prior written consent of the Agent as and when required by the Security Documents), in each case before any Advance relevant to such Borrower’s Ship or Contract has been drawn down, then, the obligation of the Banks to make such Advance available shall immediately cease and the Total Commitment shall be reduced by the aggregate amount of all the Advances for such Borrower’s Ship.

Before first drawdown. On a Borrower’s Ship becoming a Total Loss (or suffering damage or being involved in an incident which, in the opinion of the Agent, may result in such Ship subsequently being determined to be a Total Loss) or on or prior the date falling immediately prior to the completion of the novation, transfer or assignment of any either Contract by the relevant Borrower in favour of another person (with the prior written consent of the Agent as and when required by the Security Documents), in each case before any Advance relevant to such Borrower’s Ship or Contract has been drawn down, then, the obligation of the Banks to make such Advance available shall immediately cease and the Total Commitment shall be reduced by the aggregate amount of all the Advances for such Borrower’s Ship.