19 Total Loss

(a) The Charterers shall be liable to the Owners by way of damages if the vessel becomes a Total Loss. Subject to the provisions of any Financial Instrument, if the vessel becomes a Total Loss, all insurance payments for such loss shall be paid to the Owners who shall distribute the monies between the Owners and the Charterers according to their respective interests, which shall satisfy (but not exclude or discharge) the Charterers’ liability to the Owners thereof. The Charterers undertake to notify the Owners and the mortgagee(s), if any, of any occurrences in consequence of which the vessel is likely to become a Total Loss.