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Residual Value Insurance (“RVI”)

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<strong>Residual</strong> <strong>Value</strong> <strong>Insurance</strong> (<strong>“RVI”</strong>)<br />

Shipping is cyclical<br />

RVI is one method of managing this risk<br />

Reluctance of lenders & investors to assume<br />

residual risk of the vessels because of the<br />

volatility of the market<br />

RVI provider is in effect acting as a third party<br />

guarantor to secure a minimum residual value<br />

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