Common use of Timing, restrictions and limitation of Advances Clause in Contracts

Timing, restrictions and limitation of Advances. 2.5.1 The aggregate amount of the Loan shall not exceed the lower of (a) one hundred and fifty two million eight hundred thousand Dollars ($152,800,000) and (b) the amount in Dollars which is eighty per cent (80%) of the aggregate Contract Prices for all Ships. Each Advance shall, subject to the following provisions of this clause 2.5, be for such amount as is specified in the Drawdown Notice for that Advance. 2.5.2 The aggregate amount of the Tranche for each Ship shall not exceed the lower of (a) $76,400,000 and (b) the amount in Dollars which is eighty per cent (80%) of the Contract Price for such Ship. 2.5.3 The aggregate amount of each Contract Instalment Advance shall be as follows: each of the first, second and third Contract Instalment Advances for each Ship shall not exceed the lower of (i) $7,640,000 (comprising (a) Sub-Tranche A in an amount up to the lesser of (1) $5,730,000 and (2) 75% of the relevant Contract Instalment Advance to be advanced by the Banks to the Borrowers and (b) Sub-Tranche B in an amount up to the lesser of (1) $1,910,000 and (2) 25% of the relevant Contract Instalment Advance to be advanced by DNB NOR BANK ASA to the Borrowers) and (ii) the amount in Dollars which is equal to eighty per cent (80%) of the “1st Instalment” or (as the case may be), the “2nd Instalment” or (as the case may be) the “3rd Instalment” of the Contract Price for the Ship relevant to such Contract Instalment Advance, which is payable at the time specified in the third column of schedule 5 opposite the relevant Contract Instalment Advance, and each Contract Instalment Advance for a Ship shall be applied in or towards payment to the Builder or, in reimbursement to the Borrowers, of the relevant aforesaid instalment of the Contract Price payable or paid (as the case may be) under the Contract for the Ship relevant to such Contract Instalment Advance, and shall be made available to the Borrowers when such instalment has become due and payable under the relevant Contract or, if already paid by the Borrowers to the Builder.