The Shipmanagers’ Letter of Undertaking (LoU) is a model letter for use in third party arrangements where shipmanagers maintain and operate the vessel but have no financial involvement or interest in its ownership. The content of the LoU is based on provisions commonly found in market documentation ... Please follow the link to continue reading.
A new “Shipmanagers’ Letter of Undertaking” (LoU) is now available on the BIMCO website, together with Explanatory Notes. The LoU sets out shipmanagers’ obligations to lenders financing owners’ purchase of a managed vessel.
Introduction Shipmanagers acting for an owner raising finance with the managed vessel serving as collateral are regularly required to provide the lending bank, financial institution or other commercial entity with a Letter of Undertaking (LoU). The purpose of the LoU is to put the lender in the same... Please follow the link to continue reading.
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