(IV)
MAKE ALL PREMIUM AND OTHER PAYMENTS NECESSARY FOR EFFECTING OR
MAINTAINING SUCH INSURANCES AND ON DEMAND SHALL PRODUCE TO THE CHARGEE THE
RECEIPTS OF SUCH PAYMENTS; AND;
(V)
USE ALL REASONABLE ENDEAVOURS TO CAUSE THE POLICIES OF INSURANCE
MAINTAINED BY IT AS REQUIRED BY THIS CLAUSE 6.2 TO BE FORTHWITH AMENDED TO
INCLUDE CLAUSES IN FORM SATISFACTORY TO THE CHARGEE TO ENSURE THAT THE POLICIES
SHALL NOT BE VOIDABLE BY THE INSURERS AS A RESULT OF ANY MISREPRESENTATION,
NON-DISCLOSURE OF MATERIAL FACTS OR BREACH OF WARRANTY.
(B)
IF ANY DEFAULT SHALL AT ANY TIME BE MADE IN EFFECTING OR
MAINTAINING SUCH INSURANCE OR IN PRODUCING ANY SUCH RECEIPT TO THE CHARGEE ON
DEMAND OR DEPOSITING ANY POLICY WITH THE CHARGEE PURSUANT TO THIS DEBENTURE, THE
CHARGEE MAY TAKE OUT OR RENEW SUCH INSURANCES IN SUCH SUMS AS THE CHARGEE MAY
THINK EXPEDIENT AND ALL MONEY EXPENDED BY THE CHARGEE UNDER THIS PROVISION SHALL
BE RECOVERABLE BY THE CHARGEE UNDER CLAUSE 25 (COSTS, EXPENSES AND LIABILITIES).
(C)
THE CHARGOR SHALL PROCURE THAT ITS INSURANCE BROKER UNDERTAKES IN
WRITING TO THE CHARGEE THAT:
(I)
AS SOON AS IT BECOMES AWARE THAT THE CHARGOR HAS FAILED TO PAY
ANY PREMIUM OR RENEW ANY INSURANCE, IT WILL KEEP THE CHARGEE'S INTEREST IN SUCH
INSURANCE
10
IN FORCE UP TO THE FULL SUM INSURED AND FOR THE SAME RISKS (SUBJECT TO THE
PREMIUM FOR ANY SUCH PERIOD OF EXTENDED COVER BEING PAID BY THE CHARGEE FOR THE
ACCOUNT OF THE CHARGOR);
(II)
IT WILL ADVISE THE CHARGEE OF ANY PROPOSED CANCELLATION OF THE
POLICY AT LEAST 14 DAYS BEFORE SUCH CANCELLATION IS DUE TO TAKE EFFECT;
(III)
IF THE INSURANCE COVER IS TO BE REDUCED OR ANY INSURED RISKS ARE
TO BE RESTRICTED, IT WILL ADVISE THE CHARGEE AT LEAST 14 DAYS BEFORE SUCH
REDUCTION OR RESTRICTION IS DUE TO TAKE EFFECT;
(IV)
IT WILL ADVISE THE CHARGEE IMMEDIATELY OF ANY ACT, OMISSION OR
EVENT WHICH COMES TO THE KNOWLEDGE OF THE INSURER OR THE BROKER (AS THE CASE MAY
BE) AND WHICH MIGHT INVALIDATE THE INSURANCE OR RENDER IT UNENFORCEABLE, IN
WHOLE OR IN PART; AND
(V)
IT WILL ADVISE THE CHARGEE IF ANY CLAIM WITH A VALUE IN EXCESS OF
£5,000 IS REJECTED BY INSURERS OR IF INSURERS IMPOSE A RESERVATION OF RIGHTS
FOLLOWING THE NOTIFICATION OF ANY CLAIM.
7.
Collection of Other Debts and Non-vesting Debts
7.1
DURING THE CONTINUANCE OF THIS DEBENTURE:-
(I)
PAY INTO THE ACCOUNT ALL MONEYS WHICH IT MAY RECEIVE IN RESPECT
OF THE OTHER DEBTS AND (SUBJECT TO ANY RIGHTS OF THE ACCOUNT BANK IN RESPECT
THEREOF) PAY OR OTHERWISE DEAL WITH SUCH MONEYS STANDING IN SUCH ACCOUNT IN
ACCORDANCE WITH ANY DIRECTIONS FROM TIME TO TIME GIVEN IN WRITING BY THE
CHARGEE;
(II)
IF CALLED UPON TO DO SO BY THE CHARGEE EXECUTE A LEGAL ASSIGNMENT
OF THE
OTHER DEBTS TO THE CHARGEE IN SUCH TERMS AS THE CHARGEE MAY REQUIRE AND
GIVE NOTICE THEREOF TO THE DEBTORS FROM WHOM THOSE DEBTS ARE OWING