Transaction and Parties:
Lender: Nautica Financial Services or its assigns
Borrower: _______________
Guarantor: _______________
Purpose: The proceeds shall be used to construct and acquire four (4) ________________, (the “Vessels”) to be constructed for Borrower by _________________________ (the “Ship Builder”) under a Vessel Construction Contract executed by Borrower and the Ship Builder (the “Vessel Construction Contract”).
Financing Vehicle: Construction Loan converting to Mortgage type financing
Loan Amount: Vessel 1: $___________ Delivery Date
Vessel 2: $___________ Delivery Date
Vessel 3: $___________ Delivery Date
Vessel 4: $___________ Delivery Date
Collateral: First Preferred Ship Mortgage on the vessel together with all present and future attachments, accessories, exchanges, replacement parts, repairs, and
additions. All collateral must be acceptable to Lender.
Insurance: A “Lenders Risk Policy”, is required, and the premiums are included in the Borrower’s total monthly payment. The policy will remain in force for the
life of the loan (Construction and Permanent). The policy premium will be accrued and payable by the Lender.
Construction Loan:
The “Construction Period” commences on the date of the Loan Agreement. Lender or assigns will provide a construction loan during the Construction Period. The loan made by Lender to Borrower during the Construction Period shall be referred to herein as the “Construction Loan" and shall bear interest and be payable in accordance with the terms set forth below:
Advance: Advances by Lender shall be made per the schedule of progress payments to be made by Borrower under the Vessel Construction Contract upon the completion, satisfactory inspection and approval by Borrower and Lender, and invoicing by the Ship Builder at the completion of each stage of the Vessel construction.
Interest Rate: Interest on the Construction Loan will be __%. Accrued interest only will be payable at the end of the construction period, and may be rolled into the Term Loan, at the Lenders option.
Collateral: The Construction Loan will be secured by a valid, first, senior and perfected (i) security interest in and assignment of all rights, title and interest of the Borrower in the Vessel Construction Contract, all insurance now or hereafter in effect with respect to the Vessel, and the proceeds thereof, (ii) security interests and first preferred ship mortgages in and to the completed Vessel(s) together with all present and future attachments, accessories, exchanges, replacement parts, repairs, and additions thereto, and cash and non-cash proceeds thereof.
Term Loan - First Prefered Ships Mortgage
Shipowner: ____________
Guarantor: ____________
Total Finance Amount: Not to exceed the actual cost of the vessel (Estimated to be $_________).
Mortgage Term: 20-years (240-months)
Payments: Borrower required to make two hundred and forty (240) consecutive monthly payments.
- Five Years (60-payments) at $___________, then step down to __________ for 180 months. The payment factor and resulting mortgage payments will be adjusted upwards or downwards prior to funding per changes in the “index” and final equipment cost.
- Payments will be reset every 5-years for interest rate adjustments based on index, subject to floor equal to initial rate at time of closing permanent facility and replacement of construction loan.
Index: The index will be 5-year Constant Maturity rates as reported in the Federal Reserve Statistical Release H.15 report. The mortgage payments will be fixed three business days prior to funding using the most recent published rate preceding the funding date.
Early Termination: Requiring 180-days prior written notice, Borrower can exercise the following option:
* At any point after 72-months during the lease/loan, for a net present value of the remaining stream of payments discounted at 3.25%.
Lender: Nautica Financial Services or its assigns
Borrower: _______________
Guarantor: _______________
Purpose: The proceeds shall be used to construct and acquire four (4) ________________, (the “Vessels”) to be constructed for Borrower by _________________________ (the “Ship Builder”) under a Vessel Construction Contract executed by Borrower and the Ship Builder (the “Vessel Construction Contract”).
Financing Vehicle: Construction Loan converting to Mortgage type financing
Loan Amount: Vessel 1: $___________ Delivery Date
Vessel 2: $___________ Delivery Date
Vessel 3: $___________ Delivery Date
Vessel 4: $___________ Delivery Date
Collateral: First Preferred Ship Mortgage on the vessel together with all present and future attachments, accessories, exchanges, replacement parts, repairs, and
additions. All collateral must be acceptable to Lender.
Insurance: A “Lenders Risk Policy”, is required, and the premiums are included in the Borrower’s total monthly payment. The policy will remain in force for the
life of the loan (Construction and Permanent). The policy premium will be accrued and payable by the Lender.
Construction Loan:
The “Construction Period” commences on the date of the Loan Agreement. Lender or assigns will provide a construction loan during the Construction Period. The loan made by Lender to Borrower during the Construction Period shall be referred to herein as the “Construction Loan" and shall bear interest and be payable in accordance with the terms set forth below:
Advance: Advances by Lender shall be made per the schedule of progress payments to be made by Borrower under the Vessel Construction Contract upon the completion, satisfactory inspection and approval by Borrower and Lender, and invoicing by the Ship Builder at the completion of each stage of the Vessel construction.
Interest Rate: Interest on the Construction Loan will be __%. Accrued interest only will be payable at the end of the construction period, and may be rolled into the Term Loan, at the Lenders option.
Collateral: The Construction Loan will be secured by a valid, first, senior and perfected (i) security interest in and assignment of all rights, title and interest of the Borrower in the Vessel Construction Contract, all insurance now or hereafter in effect with respect to the Vessel, and the proceeds thereof, (ii) security interests and first preferred ship mortgages in and to the completed Vessel(s) together with all present and future attachments, accessories, exchanges, replacement parts, repairs, and additions thereto, and cash and non-cash proceeds thereof.
Term Loan - First Prefered Ships Mortgage
Shipowner: ____________
Guarantor: ____________
Total Finance Amount: Not to exceed the actual cost of the vessel (Estimated to be $_________).
Mortgage Term: 20-years (240-months)
Payments: Borrower required to make two hundred and forty (240) consecutive monthly payments.
- Five Years (60-payments) at $___________, then step down to __________ for 180 months. The payment factor and resulting mortgage payments will be adjusted upwards or downwards prior to funding per changes in the “index” and final equipment cost.
- Payments will be reset every 5-years for interest rate adjustments based on index, subject to floor equal to initial rate at time of closing permanent facility and replacement of construction loan.
Index: The index will be 5-year Constant Maturity rates as reported in the Federal Reserve Statistical Release H.15 report. The mortgage payments will be fixed three business days prior to funding using the most recent published rate preceding the funding date.
Early Termination: Requiring 180-days prior written notice, Borrower can exercise the following option:
* At any point after 72-months during the lease/loan, for a net present value of the remaining stream of payments discounted at 3.25%.
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