Common use of Mandatory Loss Prepayment Clause in Contracts

Mandatory Loss Prepayment. Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor shall promptly give notice thereof to the Mortgagee. (b) The Mortgagor shall pay all amounts it receives by reason of such Loss Event to the Mortgagee within three (3) Business Days after receipt by the Mortgagor. (c) Within three (3) Business Days after receipt by the Mortgagee of the amounts referred to in Subsection (b) above, the Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Mortgagee, and within three (3) Business Days of such verification by the Mortgagee, the Mortgagor shall deposit with the Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee pursuant to Subsection (b) above. (d) After the Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, (A) within five (5) Business Days after receipt by the Mortgagee of the funds referred to in Subsections (b) and (c) above, the Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Mortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor shall pay to the Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, (C) on the Intended Payment Date, the Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, and (D) the balance, if any, shall be promptly paid by the Mortgagee to the Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Mortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of Annex C of the Agreement, such amounts shall be paid by the Mortgagee to the Mortgagor. Provided that, notwithstanding the foregoing, the Mortgagor shall not be required to pay the Mortgagee any amount which the Mortgagee agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor shall promptly give notice thereof to the Mortgagee. (b) The Mortgagor shall pay all amounts it receives by reason of such Loss Event to the Mortgagee within three (3) Business Days after receipt by the Mortgagor. (c) Within three (3) Business Days after receipt by the Mortgagee of the amounts referred to in Subsection (b) above, the Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Mortgagee, and within three (3) Business Days of such verification by the Mortgagee, the Mortgagor shall deposit with the Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee pursuant to Subsection (b) above. (d) After the Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, (A) within five (5) Business Days after receipt by the Mortgagee of the funds referred to in Subsections (b) and (c) above, the Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Mortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor shall pay to the Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, (C) on the Intended Payment Date, the Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, and (D) the balance, if any, shall be promptly paid by the Mortgagee to the Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Mortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of Annex C of the Agreement, such amounts shall be paid by the Mortgagee to the Mortgagor. Provided that, notwithstanding the foregoing, the Mortgagor shall not be required to pay the Mortgagee any amount which the Mortgagee agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor shall promptly give notice thereof to the Mortgagee. (b) The Mortgagor shall pay all amounts it receives by reason of such Loss Event to the Mortgagee within three (3) Business Days after receipt by the Mortgagor. (c) Within three (3) Business Days after receipt by the Mortgagee of the amounts referred to in Subsection (b) above, the Mortgagor shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the Mortgagee, and within three (3) Business Days of such verification by the Mortgagee, the Mortgagor shall deposit with the Mortgagee an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee pursuant to Subsection (b) above. (d) After the Mortgagee has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, (A) within five (5) Business Days after receipt by the Mortgagee of the funds referred to in Subsections (b) and (c) above, the Mortgagor shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the Mortgagee, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor shall pay to the Mortgagee for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, (C) on the Intended Payment Date, the Mortgagee shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, and (D) the balance, if any, shall be promptly paid by the Mortgagee to the Mortgagor including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this Subsection, the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the Mortgagee; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of Annex C of the Agreement or if the Mortgagee shall have assumed the Mortgagor's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(12.04(a), (2), b) or (4d) of Annex C of the Agreement, such amounts shall be paid by the Mortgagee to the Mortgagor. Provided that, notwithstanding the foregoing, the Mortgagor shall not be required to pay the Mortgagee any amount which the Mortgagee agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Upon Subject to Article XVII hereof, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor Shipowner shall promptly give notice thereof to the MortgageeAdministrator. (b) The Mortgagor Shipowner shall pay all amounts it receives by reason of such Loss Event up to the Mortgagee amount of the principal amount of the Note then Outstanding to the Administrator within three (3) Business Days after receipt by the MortgagorShipowner. (c) Within three (3) Business Days after receipt by the Mortgagee Administrator of the amounts referred to in Subsection (b) above, the Mortgagor Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the MortgageeAdministrator, and and, within three (3) Business Days of such verification by the MortgageeAdministrator, the Mortgagor Shipowner shall deposit with the Mortgagee Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee Administrator pursuant to Subsection (b) above. (d) After the Mortgagee Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, Default (A) within five (5) Business Days after receipt by the Mortgagee Administrator of the funds referred to in Subsections (b) and (c) above, the Mortgagor Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the MortgageeAdministrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, ; (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor Shipowner shall pay to the Mortgagee Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, ; (C) on the Intended Payment Date, the Mortgagee Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, ; and (D) the balance, if any, shall be promptly paid by the Mortgagee Administrator to the Mortgagor Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreementhereof, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this SubsectionSubsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the MortgageeAdministrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of Annex C of the Agreement hereof or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 14.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of Annex C of the Agreementhereof, such amounts shall be paid by the Mortgagee Administrator to the MortgagorShipowner. Provided that, notwithstanding the foregoing, the Mortgagor Shipowner shall not be required to pay the Mortgagee Administrator any amount which the Mortgagee Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Upon Subject to Article XVII hereof, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor Shipowner shall promptly give notice thereof to the MortgageeAdministrator. (b) The Mortgagor Shipowner shall pay all amounts it receives by reason of such Loss Event to the Mortgagee Administrator within three (3) Business Days after receipt by the MortgagorShipowner. (c) Within three (3) Business Days after receipt by the Mortgagee Administrator of the amounts referred to in Subsection (b) above, the Mortgagor Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the MortgageeAdministrator, and and, within three (3) Business Days of such verification by the MortgageeAdministrator, the Mortgagor Shipowner shall deposit with the Mortgagee Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee Administrator pursuant to Subsection (b) above. (d) After the Mortgagee Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, Default (A) within five (5) Business Days after receipt by the Mortgagee Administrator of the funds referred to in Subsections (b) and (c) above, the Mortgagor Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the MortgageeAdministrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, ; (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor Shipowner shall pay to the Mortgagee Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, ; (C) on the Intended Payment Date, the Mortgagee Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, ; and (D) the balance, if any, shall be promptly paid by the Mortgagee Administrator to the Mortgagor Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreementhereof, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this SubsectionSubsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the MortgageeAdministrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(32.04(c) of Annex C of the Agreement hereof or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 14.04 hereof; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(12.04(a), (2b), or (4d) of Annex C of the Agreementhereof, such amounts shall be paid by the Mortgagee Administrator to the MortgagorShipowner. Provided that, notwithstanding the foregoing, the Mortgagor Shipowner shall not be required to pay the Mortgagee Administrator any amount which the Mortgagee Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.

Mandatory Loss Prepayment. Upon Subject to Article XVII of the Agreement, upon the occurrence of any Loss Event, then all of the following shall apply: (a) The Mortgagor Shipowner shall promptly give notice thereof to the MortgageeAdministrator. (b) The Mortgagor Shipowner shall pay all amounts it receives by reason of such Loss Event up to the Mortgagee amount of the principal amount of the Note then Outstanding to the Administrator within three (3) Business Days after receipt by the MortgagorShipowner. (c) Within three (3) Business Days after receipt by the Mortgagee Administrator of the amounts referred to in Subsection (b) above, the Mortgagor Shipowner shall calculate the estimated Mandatory Loss Prepayment Amount which shall be reviewed and verified by the MortgageeAdministrator, and and, within three (3) Business Days of such verification by the MortgageeAdministrator, the Mortgagor Shipowner shall deposit with the Mortgagee Administrator an amount equal to (1) the verified Mandatory Loss Prepayment Amount minus (2) the amount received by the Mortgagee Administrator pursuant to Subsection (b) above. (d) After the Mortgagee Administrator has received sufficient funds to pay the Mandatory Loss Prepayment Amount pursuant to Subsections (b) and (c) above: (1) if there is no existing Default, Default (A) within five (5) Business Days after receipt by the Mortgagee Administrator of the funds referred to in Subsections (b) and (c) above, the Mortgagor Shipowner shall make a Mandatory Prepayment Election of the prepayment of Advances in an amount equal to the Mandatory Loss Prepayment Amount (which may not be rescinded) and shall send a Mandatory Prepayment Election Notice to the Holder with a copy to the MortgageeAdministrator, which shall specify an Intended Payment Date of not less than five (5) Business Days or more than ten (10) Business Days after the receipt of such notice by the Holder, ; (B) one (1) Business Day prior to the Intended Payment Date, the Mortgagor Shipowner shall pay to the Mortgagee Administrator for payment to the Holder any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, ; (C) on the Intended Payment Date, the Mortgagee Administrator shall pay to the Holder the amounts held by it pursuant to Subsections (b) and (c) and clause Clause (B) above in accordance with terms of the Mandatory Prepayment Election Notice, ; and (D) the balance, if any, shall be promptly paid by the Mortgagee Administrator to the Mortgagor Shipowner including any interest earned on the proceeds which are in excess of the amount required to prepay such Advances; (2) if there is an existing Default and the Guarantee shall not have terminated pursuant to Section 2.04 of Annex C of the Agreement, such amounts shall be held until the same may be applied or paid under Paragraph (1) of this Subsection; provided that, in lieu of Clause (D) of Paragraph (1) of this SubsectionSubsection (d), the balance, if any, including any interest earned on the proceeds which are in excess of the amount required to prepay the Mandatory Loss Prepayment Amount and any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election, shall be held in the Chapter 537 Reserve Fund by the MortgageeAdministrator; (3) if the Guarantee shall have terminated pursuant to Section 2.04(b)(3) of Annex C of the Agreement or if the Mortgagee Administrator shall have assumed the MortgagorShipowner's rights and duties under the Note Purchase Agreement and the Note and made any payments in default under Chapter 537, such amounts shall be applied as provided in Section 5.04 hereof14.04 of the Agreement; or (4) if the Guarantee shall have terminated pursuant to Section 2.04(b)(1), (2), or (4) of Annex C of the Agreement, such amounts shall be paid by the Mortgagee Administrator to the MortgagorShipowner. Provided that, notwithstanding the foregoing, the Mortgagor Shipowner shall not be required to pay the Mortgagee Administrator any amount which the Mortgagee Administrator agrees is in excess of the amount needed for prepayment of the Proportionate Part of the Outstanding Advances affected by the Loss Event plus any additional amounts due to the Holder pursuant to the Note Purchase Documents as a result of such Mandatory Prepayment Election.