Mortgagees Interest will indemnify the Lender in the event that the assigned Insurances do not respond to a claim as a result of:

·  any breach of warranty or condition, expressed or implied or any misrepresentation, or non-disclosure or alleged non-disclosure of any fact or circumstances of any kind whatsoever.

·    the application of any provision for a time limitation on the presentation of claims.

·    any alleged deliberate, negligent or accidental act or omission or any knowledge or privity of any of the insured, including the deliberate negligent casting away or damaging of the vessel or the vessel being unseaworthy or inadequately equipped, manned or certified.

·    Failure to adhere to or maintain requirements set out in conventions and/or by Class Societies or having breached the stipulated geographical trading warranties.

Mortgagees Additional Perils (Pollution) Insurance will indemnify the Lender in the event of the legal liabilities of the Borrower exceeding the limits of liability insured for pollution under Borrower’s Policies and Entry, irrespective of amounts actually paid or not paid, with a consequent impact on the value of the Lender’s security over the mortgaged vessel. Insured Perils include:

l  expropriation, confiscation, sequestration or detention of any Vessel

l  sequestration of all or part of the sale proceeds of the Vessel following judicial sale.

l  the imposition, recognition or enforcement of a lien or encumbrance of any kind, on the Vessel.