Common use of Remedy of defaults Clause in Contracts

Remedy of defaults. Without prejudice to the generality of the provisions of clause 4.1, if the Owner fails to comply with the provisions of clause 6.1.1 of the Mortgage, the Mortgagees shall become forthwith entitled (but not bound) to effect and thereafter to maintain all such insurances upon the Ship as the Agent (acting on the instructions of the Majority Banks) may in its sole discretion it may think fit in order to procure the compliance with such provisions or alternatively, to require the Ship (at the Owner's risk) to remain in, or to proceed to and remain in, a port designated by the Agent (acting on the instructions of the Majority Banks) until such provisions are fully complied with and the Expenses attributable to the exercise by the Mortgagees or any of them of any such powers shall be payable by the Owner on demand.