Common use of Collateral Maintenance Ratio Clause in Contracts

Collateral Maintenance Ratio. If, at any time the Lender notifies the Borrowers that the aggregate Fair Market Value of the Vessels is below 125% of the outstanding principal balance of the Loan (such ratio being the “Collateral Maintenance Ratio”), the Lender shall have the right to require the Borrowers to prepay (without payment of any Prepayment Fee) such part of the Loan as will eliminate the shortfall on or before the date falling one (1) month after the date on which the Lender serves such notice (the “Prepayment Date”). Any such prepayment shall be applied to the Borrowers’ Obligations in the inverse order of maturity.

Collateral Maintenance Ratio. If, at any time the Lender notifies the Borrowers Borrower that the aggregate Fair Market Value of the Vessels Vessel is below 125% of the outstanding principal balance of the Loan (such ratio being the “Collateral Maintenance Ratio”), the Lender shall have the right to require the Borrowers Borrower to prepay (without payment of any Prepayment Fee) such part of the Loan as will eliminate the shortfall on or before the date falling one (1) month after the date on which the Lender serves such notice (the “Prepayment Date”). Any such prepayment shall be applied to the Borrowers’ Borrower’s Obligations in the inverse order of maturity.