2. shall be to make payment to you forthwith on your written demand in the form of a signed letter certifying that the amount demanded is a sum due to be paid to you under the terms of the Indemnity and has not been paid to you by the Requestor or is a sum which represents monetary compensation due to you in respect of the failure by the Requestor to fulfil its obligations to you under the Indemnity. For the avoidance of doubt the Bank hereby confirms that:-
(a) such compensation shall include, but not be limited to, payment of any amount up to the
amount stated in proviso 3 below in order to enable you to arrange the provision of
security to release the ship (or any other ship in the same or associated ownership,
management or control) from arrest or to prevent any such arrest or to prevent any
interference in the use or trading of the ship, or other ship as aforesaid, and
(b) in the event that the amount of compensation so paid is less than the amount stated in
proviso 3 below, the liability of the Bank hereunder shall continue but shall be reduced by
the amount of compensation paid.
3. shall be limited to a sum or sums not exceeding in aggregate [insert currency and amount in figures and words]
4. subject to proviso 5 below, shall terminate on [date six years from the date of the Indemnity ) (the ‘Termination Date’), except in respect of any demands for payment received by the Bank hereunder at the address indicated below on or before that date.
5. shall be extended at your request from time to time for a period of two calendar years at a time provided that:-
a) the Bank shall receive a written notice signed by you and stating that the Indemnity is
required by you to remain in force for a further period of two years, and
b) such notice is received by the Bank at the address indicated below on or before the then
current Termination Date.
Any such extension shall be for a period of two years from the then current Termination Date and, should the Bank for any reason be unwilling to extend the Termination Date, the Bank shall discharge its liability by the payment to you of the maximum sum payable hereunder (or such lesser sum as you may require).
However, in the event of the Bank receiving a written notice signed by you, on or before the then current Termination Date, stating that legal proceedings have been commenced against you as a result of your having delivered the said cargo as specified in the Indemnity, the Bank agrees that its liability hereunder will not terminate until receipt by the Bank of your signed written notice stating that all legal proceedings have been concluded and that any sum or sums payable to you by the Requestor and/or the Bank in connection therewith have been paid and received in full and final settlement of all liabilities arising under the Indemnity.