Common use of PAYMENT UNDERTAKING Clause in Contracts

PAYMENT UNDERTAKING. The Sponsors hereby jointly and severally and unconditionally and irrevocably undertake to the Borrower and as a separate and independent obligation to the Security Agent that in the event that any incident shall occur in relation to the Rig which gives rise to a right to claim under the Delay in Delivery Insurance or the Loss of Hire Insurance they will, within 7 Banking Days of first written demand from the Facility Agent, pay to the Borrower in accordance with Clause 9 such amount as is determined by the Facility Agent to be equal to the amount of any Insurance Deductible applicable in respect of each such claim.