Common use of Flag Clause in Contracts

Flag. 44.1 The Vessel shall upon the Actual Delivery Date be registered by the Charterers (at its own cost and expense) by way of ownership and demise charter registration with the name of the Owners as beneficial owner and the Charterers as demise charterer, under the flag of the Flag State. 44.2 Each party hereto has the right to request for the change of Flag State, subject to the other party's prior written consent which is not to be unreasonably withheld or delayed. If there is a Mortgage, any change of Flag State shall also be subject to the Mortgagee's consent (not to be unreasonably withheld or delayed), which the Owners shall take reasonable steps to request but shall not be liable to procure or ensure. All the costs and expenses for effecting such change, as well as any additional or increase in the costs, expenses and Taxes incurred or to be incurred by the other party (whether due to change of tax regime or otherwise), shall be borne by the party requesting such change. 44.3 All costs and expenses arising in connection with the initial ownership and demise charter registration of the Vessel or in connection with the maintenance of such registration shall be borne by the Charterers and, if and to the extent from time to time paid by the Owners, shall be reimbursed by the Charterers to the Owners upon demand.

Flag. 44.1 The Vessel shall upon the Actual Delivery Date be registered by the Charterers (at its own cost and expense) by way of ownership and demise charter registration with the name of the Owners as beneficial owner and the Charterers as demise charterer, under the flag of the Flag State. 44.2 Each party hereto has the right to request for the change of Flag State, subject to the other party's ’s prior written consent which is not to be unreasonably withheld or delayed. If there is a Mortgage, any change of Flag State shall also be subject to the BBC Rider Clause (▇▇▇▇▇▇▇▇▇▇) (20180426) Mortgagee's ’s consent (not to be unreasonably withheld or delayed), which the Owners shall take reasonable steps to request but shall not be liable to procure or ensure. All the costs and expenses for effecting such change, as well as any additional or increase in the costs, expenses and Taxes incurred or to be incurred by the other party (whether due to change of tax regime or otherwise), shall be borne by the party requesting such change. 44.3 All costs and expenses arising in connection with the initial ownership and demise charter registration of the Vessel or in connection with the maintenance of such registration shall be borne by the Charterers and, if and to the extent from time to time paid by the Owners, shall be reimbursed by the Charterers to the Owners upon demand.