Leasing

What does the ‘Hell or High Water’ clause refer to in the context of finance leases?

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Hi @EiriniXyla, it is a provision (contractual commitment/ obligation) often included in a leasing agreement stating that the paying party (the lessee) is obliged to continue paying the lease unconditionally, meaning, regardless of any difficulties the lessee may encounter while operating the leased asset (the ship :slight_smile: ). This clause took its name from the expression “come hell or high water” … a very Shipping term :wink: .

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