Value Maintenance Clause Samples
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Value Maintenance. If at any time the aggregate of the Ship Values of the Vessels shall fall below 135 % of the aggregate of the Loans and any negative ▇▇▇▇-to-market value of any Hedging Agreement, then the Borrowers will forthwith either:
(a) prepay the amount of the Loans in accordance with Clause 6.4 (b) (Application of Mandatory prepayments) necessary to restore such ratio; or
(b) provide additional security which in the reasonable opinion of all Lenders is deemed satisfactory for restoring such ratio (it being understood that cash collateral in USD held with the Agent shall always be acceptable and valued at par). Upon the Borrowers providing evidence satisfactory to the Agent on behalf of all the Lenders of subsequent compliance with the minimum required Ship Values without taking into account any additional security cover provided pursuant to this Clause 20.14, any additional security provided shall be released to the relevant Obligor or to any relevant third party.
Value Maintenance. (a) If, at any time during the first two years following the Effective Date, the Fair Market Value of the Ship and any additional Collateral provided pursuant to this Clause 10.3(a) shall be less than 140% of the Required Fair Market Value as at such time, or if at any time thereafter, the Fair Market Value of the Ship and any additional Collateral provided pursuant to this Clause 10.3(a) shall be less than 130% of the Required Fair Market Value as at such time, the Agent (acting upon the instruction of the Majority Lenders) shall have the right to require the Borrower and the Guarantor, within 30 Business Days of the date of the written demand of the Agent therefor, either (i) to prepay the Loan in such amount as may be necessary to cause such Fair Market Value of the Ship to equal or exceed 140% or 130%, as the case may be, of the Required Fair Market Value as at such time or (ii) to provide such additional Collateral as may be acceptable to the Agent in its sole reasonable discretion (acting upon the instruction of the Majority Lenders) so that Fair Market Value of the Ship and additional Collateral provided pursuant to this Clause 10.3(a) shall equal or exceed 140% or 130%, as the case may be, of the Required Fair Market Value as at such time, and the Obligors shall comply with any such written demand made by the Agent.
(b) Any prepayment required by this Clause 10.3 shall be subject to the requirements of Clauses 7.5, 7.6, 7.7, 7.8 and 7.9.