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1.1.5 avoidance of a claim under any of the Owners’ Policies and Club Entries or any of the Owners’ Policies and Club Entries by reason of breach of the duty of good faith in respect of such claim, or
1.1.6 the operations of any applicable provision in any of the Owners’ Policies and Club Entries which provides for a time limitation on the presentation of claims,
1.1.7 in the event of the total loss of the Mortgaged Vessel, the final judgment or award of the courts or arbitration tribunal agreed to have jurisdiction under the express terms of Owners’ Policies and Club Entries (or in the event of there being no such express terms the competent court) following a contested hearing whereby the Owners’ claim is not recoverable under either Owners’ hull and machinery or war risks policies on the ground that the loss has not been proved to have been proximately caused by a peril insured under those policies and is not otherwise excluded from payment by an exclusion or other provision therein.
1.2 Owners’ Policies and Club Entries—means hull and machinery policies on terms equivalent to or wider than the current Institution Time Clauses, Hulls or American Institute Hull Clauses, (if taken, increased value policies on terms equivalent to Institute Time Clauses—Hull Disbursements and Increased Value (Total Loss Only and Excess Liabilities) or American Institute Increased Value and Excess Liabilities Clauses), War risks on terms equivalent to current Institute War and Strikes Clauses Hulls—Time and full protection and indemnity risks on conditions equivalent to the rules of a P&I Club that si a member of the International Group of P&I Associations.
1.3 Net Loss—means the Assured’s loss under the loan agreement to the extent secured by mortgage on the Mortgaged Vessel net of any amounts recovered or recoverable under all security arrangements contained in or collateral to the loan including but not limited to all mortgages (whether on vessels insured hereunder or on other vessels), liens, any floating and fixed charges, security interests, guarantees, insurance policies and pledges.
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