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hello this nugget looks at conditions precedent and closing there are usually two sets of conditions president in a shipping finance transaction ignoring new buildings which we look at elsewhere the first set consists of the usual conditions president to any learn agreement such as corporate authorities and payment of fees these conditions need to be fulfilled before the lender arranges funds so that if there's any delay in drawing the loan the various provisions in the loan agreement dealing with compensation for the lender for broken funding costs will be effective the second set of conditions president are those relating to the ship itself which can't be fulfilled until the day to drawdown we'll start with the most important condition president the mortgage on the ship there are a number of practical problems in arranging the provision of the ship mortgage as a condition precedent to the loan principally the problem is that the borough can't mortgage the ship until he owns it and he

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