Common use of INDENTURE DEFAULTS AND REMEDIES Clause in Contracts

INDENTURE DEFAULTS AND REMEDIES. SECTION 6.01. WHAT CONSTITUTES "INDENTURE DEFAULTS." Each of the following events shall constitute an "Indenture Default": (a) Default in the payment of the whole or any part of the interest on any of the Outstanding Obligations when the same shall become due and payable or default in the payment of the whole or any part of the principal of any of the Outstanding Obligations when the same shall become due and payable, whether by reason of Maturity, Redemption, acceleration or otherwise, or any default referred to in Section 6.08, and continuation of any such default for a period of 30 days (herein called a "Payment Default"); and (b) The giving of a Secretary's Notice to the Indenture Trustee. The Indenture Trustee shall give to the Obligees, the Secretary and the Shipowner prompt notice in writing of any Payment Default (unless such default shall have been remedied prior to the giving of such notice), and of the occurrence of any Indenture Default which shall be continuing; PROVIDED THAT, the Indenture Trustee shall have no duty to give any such notice unless and until a Responsible Officer of the Indenture Trustee, who is a Responsible Officer in its Corporate Trust Office, has actual knowledge of such default or Indenture Default. Any such notice of an Indenture Default to the Obligees (i) shall specify the nature of such Indenture Default, (ii) shall state that, by reason thereof, the Indenture Trustee is entitled under the Indenture to demand payment by the Secretary of the Guarantees, (iii) shall set forth the provisions of Section 6.04(b)(3) and (5), and (iv) shall advise the Obligees of the provisions of Section 6.02.