Common use of Owners’ default Clause in Contracts

Owners’ default. (a) If, in the absence of any Termination Event which is continuing, the Vessel is arrested or otherwise detained as a result of the Owners' direct actions or omissions, the Owners shall at their own expense take all reasonable steps, including the provision of bail, to procure that the Vessel is released within a reasonable period of time. (b) If any arrest or detention of the Vessel referred to in paragraph (a) above continues for a period of more than forty-five (45) days, the Charterers shall be entitled to purchase the Vessel pursuant to Clause 53 (Call Option), except that:- (i) the notice period required under Clause 53.2(a) shall be shortened to ten (10) Banking Days before the date on which the Sale to the Charterers is intended to occur; (ii) the requirement under Clause 53.2(b) shall not apply; and (iii) the purchase price of the Vessel shall be the sum of:- (A) the Termination Sum (excluding the amounts set out in paragraphs (b), (c) and (f) of the definition thereof) as at the date on which the Sale to the Charterers occurs; and (B) the Charterhire Principal Balance as at the date on which the Sale to the Charterers occurs. (c) Upon the termination of this Charter and the Sale to the Charterers pursuant to the procedure set out above, any liabilities and obligations of the Owners to the Charterers under the Transaction Documents, at law or otherwise shall be extinguished and fully discharged. The Parties agree that the Charterers' remedies in respect of any breach by the Owners of the Transaction Documents shall be limited to those set out in this Clause 55A.

Owners’ default. (a) If, in the absence of any Termination Event which is continuing, the Vessel is arrested or otherwise detained as a result of the Owners' direct actions or omissions, the Owners shall at their own expense take all reasonable steps, including the provision of bail, to procure that the Vessel is released within a reasonable period of time. (b) If any arrest or detention of the Vessel referred to in paragraph (a) above continues for a period of more than forty-five (45) days, the Charterers shall be entitled to purchase the Vessel pursuant to Clause 53 (Call Option), except that:- (i) the notice period required under Clause 53.2(a) shall be shortened to ten (10) Banking Days before the date on which the Sale to the Charterers is intended to occur; (ii) the requirement under Clause 53.2(b) shall not apply; and (iii) the purchase price of the Vessel shall be the sum of:- (A) the Termination Sum (excluding the amounts set out in paragraphs (b), (ce) and (f) of the definition thereof) as at the date on which the Sale to the Charterers occurs; and (B) the Charterhire Principal Balance as at the date on which the Sale to the Charterers occurs. (c) Upon the termination of this Charter and the Sale to the Charterers pursuant to the procedure set out above, any liabilities and obligations of the Owners to the Charterers under the Transaction Documents, at law or otherwise shall be extinguished and fully discharged. The Parties agree that the Charterers' remedies in respect of any breach by the Owners of the Transaction Documents shall be limited to those set out in this Clause 55A.