Common use of Valuation of Mortgaged Ships Clause in Contracts

Valuation of Mortgaged Ships. Each Mortgaged Ship shall, for the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require (and at least twice per calendar year), save that in case of termination, cancellation, rescission or repudiation of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing shall be performed during the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such period. Each such valuation for a Mortgaged Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, the Agent. Each valuation shall be made without, unless required by the Agent or the Borrowers, physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length, on normal commercial terms, as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual Value. The arithmetic mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 The value of each Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time as any further such valuation shall be obtained.

Valuation of Mortgaged Ships. Each of the Mortgaged Ship Ships shall, for the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require by one (and at least twice per calendar year), save that in case of termination, cancellation, rescission or repudiation 1) of the Charter or Qualifying Charter as Approved Shipbroker nominated by the case may be for that ShipBorrowers or, no failing such nomination, appointed by the Agent and, additionally, and only if requested by the Agent within fifteen (15) days from the date when the Agent receives the said first valuation of that Ship or Security Value testing shall be performed during under this clause 8.2.2, by a second Approved Shipbroker appointed by the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such periodAgent. Each such valuation for a Mortgaged Ship shall be made by two not older than fifteen (215) Approved Shipbrokers, each nominated by the Borrowers approved by, days and addressed to, the Agent. Each valuation shall be addressed to the Agent (with a copy to the Borrowers) and made without, unless required by the Agent or the BorrowersAgent, physical inspection, inspection and on the basis of a sale for prompt delivery for cash at arm’s length, length on normal commercial terms, terms as between a willing buyer and a willing seller, seller without taking into account the benefit of any charterparty or other engagement concerning the relevant such Mortgaged Ship. If only one (1) valuation of a Mortgaged Ship except thatis obtained, if such Ship is employed under a Charter or a Qualifying Charter, such valuation it shall be constitute the aggregate of the Time Charter Income and Residual Value value of such Mortgaged Ship with for the purpose of this clause 8.2.2. In the event that two (2) valuations are obtained for a Mortgaged Ship and they differ between them by more than ten per cent (10%), then the Agent may, in its sole discretion, obtain a third valuation of a Mortgaged Ship from another Approved Shipbrokers providing in Shipbroker and made on the same basis as the other two valuations for such case the Residual ValueMortgaged Ship. The arithmetic mean of the two valuations for a Mortgaged Ship eventually obtained in accordance with this clause shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 8.2. The value of each Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 8.2 shall be binding upon the parties hereto until such time as any such further such valuation shall be obtained.

Valuation of Mortgaged Ships. Each of the Mortgaged Ship Ships shall, for the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall require and in any event not less frequently than at three (3) monthly intervals and at least twice per calendar year)immediately prior to the sale of a Mortgaged Ship, save that in case of termination, cancellation, rescission or repudiation by any two (2) of the Charter or Qualifying Charter as Approved Shipbrokers, one nominated by the case may be for that ShipAgent in its sole discretion and the other nominated by the Borrowers or, no valuation of that Ship or Security Value testing shall be performed during failing such nomination, by the period commencing on such termination, cancellation, rescission or repudiation and ending 90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another Qualifying Charter as the case may be during such periodAgent in its sole discretion. Each such valuation for a Mortgaged Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, to the Agent. Each valuation , shall be dated not more than 14 days previously and shall be made without, unless required by the Agent or the BorrowersAgent, physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s 's length, on normal commercial terms, terms as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that, if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual ValueShip. The arithmetic mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided provided however that if such the two (2) valuations obtained in respect of relation to a Mortgaged Ship vary by more than ten per cent (10%) (by reference to the higher figure), the Agent and the Borrowers shall jointly appoint a third Approved Shipbroker to value such Mortgaged Ship on the same basis as the other two (2) valuations and, in that case, the arithmetic mean of the all three (3) such valuations shall then constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 8.2. The value of each any Mortgaged Ship determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time as any further such valuation valuations shall be obtained.