Demise charters Sample Clauses

Demise charters. The Borrower shall and shall procure that the relevant Owner shall, promptly upon the entering into of any demise charter for any period in respect of a Ship, notify the Agent and provide copies of any charter relating to such Ship and, if applicable, any charter guarantee and the Borrower shall and shall procure that the relevant Owner shall procure that: (a) following the repayment of the Senior Loans and of all amounts outstanding under the Senior Loan Agreements and the release of the Senior Finance Documents, the relevant Owner shall execute in favour of the Security Trustee a second priority specific assignment of all its rights, title and interest in and to such charter in form and substance satisfactory to the Security Trustee; and (b) the charterer agrees to acknowledge to the Security Trustee the specific assignment provided pursuant to paragraph (a) above of such charter and provides to the Security Trustee a letter of undertaking of such charterer pursuant to which the charterer subordinates all its claims against the relevant Owner and the Ship to the claims of the Lenders under or in connection with the Finance Documents in form and substance satisfactory to the Lenders and in which the charterer further undertakes to the Security Trustee: (i) to comply with all of the relevant Owner’s undertakings in regard to the employment, insurances, operation, repairs and maintenance of the Ship contained in Clauses 12 and 13 of this Agreement as incorporated in the relevant Mortgage; and (ii) to provide an assignment of its interest in the insurances of the relevant Ship in form and substance satisfactory to the Security Trustee.