Common use of Maintenance of Security Clause in Contracts

Maintenance of Security. 17.1 If the Agent reasonably requires at any time and from time to time and at least every twelve (12) months, each Mortgaged Vessel shall be valued in Euros by two Approved S & P Brokers chosen by the Security Trustee, acting with the authorisation of the Instructing Group and the Market Value of each Mortgaged Vessel shall be the average of such two valuations which shall be made without physical inspection (unless otherwise required by the Security Trustee), and on the basis of an arm’s-length purchase by a willing buyer from a willing seller and without taking into account any charterparty. The fees of the Approved S & P Brokers appointed to give such valuations and all other costs arising in connection with the obtaining of any such valuations shall be paid by the Borrowers. 17.2 In the event that at any time during the Security Period after the earlier of (i) the Drawdown Date of the Delivery Advance last to occur and (ii) the Final Availability Date the Security Value shall be less than the Security Requirement applicable at the relevant time, then the Borrowers shall within twenty (20) Banking Days of receipt of a notice from the Security Trustee advising the Borrowers of the amount of such deficiency (which notice shall be conclusive) either provide to the Security Trustee and/or the Creditor Parties additional security (valued in accordance with normal banking practice) which shall in all respects be acceptable and satisfactory to the Banks in their sole discretion so that the Security Value together with the value of any additional security (valued as aforesaid) provided to the Security Trustee and/or the Creditor Parties pursuant to this Clause 17 is at least equal to the Security Requirement or prepay part of the Facility in accordance with Clause 8 so that the Security Value together with the value of any additional security (valued as aforesaid) provided to the Security Trustee and/or the Creditor Parties pursuant to this Clause is at least equal to the Security Requirement applicable at the relevant time.

Maintenance of Security. 17.1 If 7.1 The Mortgagee shall without prejudice to its rights and powers hereunder or under any of the Agent reasonably requires other Security Documents be entitled (but not bound) at any time and from time as often as may be necessary to time take any such action as it may in its discretion think fit for the purpose of protecting and at least maintaining the security created by this Mortgage and any other Security Documents (including without prejudice to the foregoing generality the exercise of any of the rights set out in this Clause 7 and its rights as Mortgagee of the Vessel and each and every twelve (12) monthscost, each Mortgaged Vessel expense or liability so incurred by the Mortgagee in or about the protection of the security constituted thereby and hereby shall be valued in Euros by two Approved S & P Brokers chosen repayable to the Mortgagee by the Security TrusteeOwner on demand together with interest thereon at the Default Rate from the date whereon such cost, acting expense or liability was incurred by the Mortgagee until the date of actual receipt (as well after as before any judgment) and any such cost, expense or liability so incurred together with the authorisation of the Instructing Group and the Market Value of each Mortgaged Vessel interest thereon shall be the average of such two valuations which shall be made without physical inspection (unless otherwise required secured by the Security Trustee), and on the basis of an arm’s-length purchase by a willing buyer from a willing seller and without taking into account any charterparty. The fees of the Approved S & P Brokers appointed to give such valuations and all other costs arising in connection with the obtaining of any such valuations shall be this Mortgage until paid by the BorrowersOwner to the Mortgagee. 17.2 In 7.2 Without prejudice to the generality of the foregoing and subject to the aforesaid: (A) in the event that the provisions of Clause 6(A) hereof or any of them shall not be complied with the Mortgagee shall be at liberty to effect and thereafter to maintain all such insurances upon the Vessel as in their discretion they may think fit; (B) in the event that the provisions of Clause 6(B) and/or 6(D) or any time during of them shall not be complied with the Security Period after Mortgagee shall be at liberty to arrange for the earlier carrying out of (i) such repairs and/or surveys at the Drawdown Date cost of the Delivery Advance last to occur and Owner as the Mortgagee may deem expedient or necessary; (iiC) in the Final Availability Date event that the Security Value provisions of Clause 6(F) hereof or any of them shall not be complied with the Mortgagee shall be less than at liberty to pay and discharge all such debts, damages and liabilities as are therein mentioned and/or to take any such measures as the Security Requirement applicable Mortgagee may deem expedient or necessary for the purpose of securing the release of the Vessel and the Owner shall repay and indemnify the Mortgagee against any payments, costs or expenses so incurred by it together with interest at the relevant time, then the Borrowers shall within twenty (20) Banking Days of receipt of a notice Default Rate from the Security Trustee advising the Borrowers date of the amount of such deficiency (which notice shall be conclusive) either provide payment to the Security Trustee and/or date of recovery in full (both before and after any judgment) by the Creditor Parties additional security (valued in accordance with normal banking practice) which shall in all respects be acceptable and satisfactory to the Banks in their sole discretion so that the Security Value together with the value of any additional security (valued as aforesaid) provided to the Security Trustee and/or the Creditor Parties pursuant to this Clause 17 is at least equal to the Security Requirement or prepay part of the Facility in accordance with Clause 8 so that the Security Value together with the value of any additional security (valued as aforesaid) provided to the Security Trustee and/or the Creditor Parties pursuant to this Clause is at least equal to the Security Requirement applicable at the relevant timeMortgagee.

Maintenance of Security. 17.1 19.1 If the Agent and the Security Trustee reasonably requires require, at any time and from time to time and at least (but not more often than every twelve six (126) months), each Mortgaged Vessel the Vessels shall be valued in Euros Dollars by two Approved a firm of shipbrokers chosen from Maersk Brokers K/S & P Brokers chosen or ▇▇▇▇ ▇▇▇▇▇▇▇▇ or ▇▇▇▇ ▇▇▇▇▇▇ (or such other firm of shipbrokers as approved by the Security Trustee, acting with Agent) nominated by the authorisation of the Instructing Group and the Market Value of each Mortgaged Vessel shall be the average of Borrowers such two valuations which shall to be made without physical inspection (unless otherwise required by the Security TrusteeAgent), and on the basis of an arm’s-length purchase by a willing buyer from a willing seller and without taking into account any charterparty. The fees of the Approved S & P Brokers firm of shipbrokers appointed to give such valuations valuation and all other costs arising in connection with the obtaining of any such valuations shall be paid by the Borrowers. 17.2 In the event that 19.2 If at any time during the Security Period after the earlier delivery of Newbuilding B or after the expiry of the Availability Period applicable to the Post-Delivery Advances the aggregate of (i) the Drawdown Date values of the Delivery Advance last Vessels then subject to occur and a Mortgage determined pursuant to Clause 19.1 plus (ii) the Final Availability Date value of any additional security (valued in accordance with normal banking practice) previously provided to the Security Value shall be Trustee pursuant to this Clause, is less than one hundred and twenty percent (120%) of the Security Requirement applicable aggregate of (a) the part of the Facilities denominated in Dollars, plus (b) the aggregate Currency Equivalent in Dollars at the relevant timetime of all Currency Tranches plus (iii) the net sum which the Swap Agent certifies would then be payable by the Borrowers if an Early Termination Date in respect of all Forward F/X Contracts were then to occur, plus (iv) any other sums which the Swap Agent certifies would then be payable under the Master Agreement (the “Loan to Value Ratio”), then the Borrowers shall within twenty ten (2010) Banking Business Days of receipt of a notice from the Security Trustee Agent advising the Borrowers of the amount of such deficiency (which notice shall be conclusive) either (a) provide to the Security Trustee and/or the Creditor Parties additional security (valued in accordance with normal banking practice) which shall in all respects be acceptable and satisfactory to the Banks in their sole discretion so that the Security Value together with the value of any additional security (valued as aforesaid) provided to Agent and the Security Trustee and/or (after consultation with the Creditor Parties pursuant to this Clause 17 is at least equal to Banks) which additional security shall take such form, be constituted by such documentation and be entered into between such parties as the Security Requirement Agent may approve or require or (b) prepay forthwith such part of the Facility in accordance with Clause 8 so Indebtedness as will ensure that the Security Value together with security coverage ratio of one hundred and twenty percent (120%) calculated in the value of any additional security (valued as aforesaid) provided to the Security Trustee and/or the Creditor Parties pursuant to this Clause manner described above is at least equal to the Security Requirement applicable at the relevant timereinstated.