Common use of Security Cover Clause in Contracts

Security Cover. 26.1 Minimum required security cover (a) Clause 26.2 (Provision of additional security; prepayment) applies if, on or after the first Utilisation Date, the Facility Agent notifies the Borrower that: (i) the aggregate Market Value each Mortgaged Ship; plus (ii) the net realisable value of additional Security previously provided under this Clause 26 (Security Cover), is below 125 per cent. of the aggregate of (i) the Loan and (i) the Hedging Close Out Liabilities. (b) Valuations of the Ship from Approved Valuers shall be provided to, or obtained by, the Facility Agent in accordance with Clause 26.7 (Provision of Valuations) for the purpose of determining compliance with this Clause 26.1 (Minimum required security cover).