Terms & Conditions

  1. LOAN
    1. We agree to lend to you, and you agree to borrow, the amount of credit set out on the first page of this Agreement, on the terms set out in the preceding pages of this Agreement and below, for the purposes of acquiring the vessel set out on the first page of this Agreement (the “Vessel”). We will pay the amount of credit directly to the supplier of the Vessel. We will not pay the amount of credit to you.
    2. You must pay us the repayments set out on the first page of this Agreement on the dates specified. Punctual payment is a strict requirement of this Agreement which means that, if you do not pay any repayments on time, we are entitled to terminate this Agreement, but we will only do so in the circumstances set out in clause 5 below.
    3. Where the amount of credit is £150,000 or more and the Vessel is unregistered, you must register the Vessel on Part 1 of the UK Ships Register within [X] days following the date of this Agreement.
  2. MORTGAGE
    1. By your signature, operating for the purposes of this clause 2.1 as execution and delivery of a deed, you mortgage to us 64/64 (sixty four out of sixty four) shares, of which you are the owner(s), in the Vessel and its additions, accessories (including any trailer), alterations or replacements as security for the payment of all monies now or to become due or owing under this Agreement.
    2. As further security, by signing this Agreement you undertake, on demand by us, to execute in our favour a statutory mortgage of the Vessel if the Vessel is, or becomes, registered under Part 1 of the UK Ship Register.
    3. As further security we shall hold the title documents for the Vessel until all sums due to us under this Agreement are paid in full.
  3. INSURANCE
    1. From the date you take delivery of the Vessel you will insure it against loss and damage for at least its day to day replacement value and against claims for injury, loss or damage caused by the Vessel or its use for at least £[X] for third party liability. You will also arrange for our interest to be noted in the third party liability insurance policy and for us to be named as first loss payee in respect of the insurance of the Vessel.
    2. You will pay all insurance premiums on time. You will show us the certificate of insurance and premium receipt on request.
    3. If the Vessel is damaged and can be repaired you will use all the insurance money paid to you to repair it.
    4. If the Vessel is a total loss because it is lost, stolen, destroyed or damaged so badly that the insurer decides it is not worth repairing the following amounts will become immediately due and payable:
      1. any payments and other amounts that you should have paid us before the date of total loss; and
      2. the rest of the Total Amount Payable less any rebate as required by law.
    5. If the Vessel is a total loss you will write and tell us immediately and will arrange for prompt payment of the insurance money to us. If we ask you to, you will transfer to us all your rights under the insurance policy.
    6. If we receive the insurance money within two months of the date of total loss we will set it off against the amounts due to us. If the insurance money exceeds those amounts due to us we will refund any surplus to you.
    7. If within two months of the date of a total loss, we do not receive either the insurance money sufficient to cover the amounts due to us or you have not paid all amounts you owe, we may enforce our rights after sending you a default notice as required by law.
    8. If you fail to insure the Vessel as required by this Agreement, we may do so and you will reimburse us with any premiums we have paid immediately we ask you to do so, together with such amount as we consider reasonable to cover our administration costs
  4. CARE OF THE VESSEL
    1. You will be responsible for any loss of or damage to the Vessel even if it is not your fault. You will keep the Vessel together with all machinery, accessories and equipment in good and seaworthy condition so that where applicable the Vessel complies at all times with the provisions of the Recreational Craft Regulations 2017, the Boat Safety Scheme and any other requirements for maintaining its current registration and coding. You will carry out any repairs and replace parts when necessary.
    2. If the Vessel is registered under Part 1 of the UK Ship Register, you will maintain the registration of the Vessel under Part 1 of the UK Ship Register.
    3. You will use the Vessel in a careful and proper manner in accordance with the manufacturer’s recommendations.
    4. You will let us inspect the Vessel at any reasonable time.
    5. You will not use or let anyone use the Vessel illegally. You will not let anyone obtain any rights over the Vessel or let anyone take or threaten to take it to pay any debt that you owe. You will keep the Vessel in your possession and under your control and will not sell, transfer or mortgage the Vessel. You will not lend or charter the Vessel without our prior written consent.
    6. You will pay on time all licence fees, mooring fees, taxes, fines or other charges and other amounts due relating to the Vessel or its use. We may pay the amount of the charge, fine or penalty for you. You will then repay that amount to us on demand together with such amount as we consider reasonable to cover our administration costs.
    7. You will not make any alterations to the Vessel or change any of its identification marks, number or name without our prior written consent unless you are obliged to do so by law. Any additions, accessories, alterations or replacements will become subject to this Agreement and the mortgage.
    8. If the Vessel is unregistered or is registered on Part 3 of the UK Ships Register, you will only use the Vessel for private purposes in the United Kingdom waters. If you intend to use the Vessel in waters outside of the United Kingdom then you must first register the Vessel on Part 1 of the UK Ships Register. Where the Vessel is registered on Part 1 of the UK Ships Register you may use the Vessel in any European country’s inland and coastal waters, provided such use is covered by your insurance policy as approved by us. You must seek our prior written approval if the Vessel is to be used or located elsewhere.
    9. You will not use the Vessel for residential purposes.
  5. OUR RIGHT TO TERMINATE THIS AGREEMENT
    1. If:
      • you fail to pay two consecutive repayments in full and on time; or
      • you breach any term of the Agreement (except as to the payment of monies) and fail to put it right within 7 days of us letting you know; or
      • you present or suffer a bankruptcy petition to be presented against you or enter or take steps to enter into any arrangement, voluntary or otherwise, with your creditors or in Scotland become insolvent or allow your estate to be sequestrated or grant a trust deed for your creditor;
      • you die; or
      • we become aware that any information supplied by you when entering into this Agreement was false in any material respect, you shall be assumed to have formally rejected this Agreement and we may, if you fail to comply with the default notice that we are required by law to send you, terminate the Agreement.
  6. OUR RIGHTS IF WE TERMINATE THE AGREEMENT
    1. If we terminate the Agreement you must pay us immediately:
      • all repayments and any charges on default, which are at that time overdue plus where applicable, any other sums due to us under this Agreement; and
      • by way of agreed damages for breach of this Agreement, an amount equal to the Total Amount Payable under this Agreement, less any repayments paid or due and less any statutory rebate to which you may be entitled; and
      • our reasonable costs and legal expenses for taking steps to ensure you comply with your obligations under this Agreement; and
      • any reasonable costs incurred by us in enforcing our rights under the mortgage.
    2. If we terminate the Agreement we can enforce our rights under the mortgage.
  7. POWERS UNDER THE MORTGAGE AND APPOINTMENT OF A RECEIVER
    1. If you fail to comply with the default notice we will have the right to:
      • pay or settle third party claims affecting the Vessel or incur expenses in determining the whereabouts of the Vessel and recover the costs from you;
      • take possession of the Vessel and for that purpose to enter into or upon any premises or place under your control or to which you have access where the Vessel is or is reasonably thought to be situated without being liable to you for or by reason of such entry;
      • appoint a receiver of the Vessel;
      • sell or dispose of the Vessel on such terms as we consider appropriate;
      • after taking possession of the Vessel, navigate, insure, charge or use the Vessel in any way we think appropriate.
    2. A receiver who is appointed will be your agent and will have power to take any required action.
    3. We will not be liable to any receiver appointed under this Agreement for his remuneration, costs, charges and expenses.
  8. POWER OF ATTORNEY
    • By signing this Agreement you irrevocably appoint us as your Attorney to, on your behalf, and in your name and as your act or deed, to do and execute and effect all such things as may be necessary to give effect to the provisions which you undertake to execute under this Agreement and in particular (but without prejudice to the generality of the foregoing) to complete, execute, date, deliver and otherwise perfect the Statutory Mortgage.
  9. WAIVER
    • From time to time, we may allow extra time for you to perform your obligations to us under or in connection with the facility. If we do not exercise any right under this Agreement when we are able to do so, this will not mean that we cannot exercise that right at a later date.
  10. SEVERABILITY
    • If at any time any provision of these terms is or becomes illegal, invalid or unenforceable, this will not affect the legality, validity or enforceability of the remaining provisions.
  11. LIABILITY OF JOINT CUSTOMERS
    • If you, the Customer(s) specified overleaf, are more than one person, then you will be liable for all obligations under this Agreement both individually and together and reference overleaf to “you” includes either or both of you.
  12. LAW AND JURISDICTION
    • This Agreement is governed by and is to be construed in accordance with the law of England and Wales and the courts of England and Wales shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement or any of the deeds or documents referred to in it.