article vi – property
1） the yacht as she is constructed， and all machinery and equipment and materials， whether wholly or partially finished or unfinished， from time to time appropriated or intended for the yacht in the boatyard or elsewhere， shall be and remain the absolute property of the buyer （and shall be at the risk of the builder） and shall be within the ownership and disposition of the buyer. the builder shall， however， have a lien upon the craft， machinery and equipment and materials for recovery of all sums due under the terms of this agreement or any variation or modification thereof.
2） the builder will co-operate with and give all reasonable assistance to the buyer in relation to the measurement and registration of the yacht.
article vii – insurance
1） during the period of construction under this contract and until delivery of the yacht in accordance with article ix， the yacht and all materials， machinery and equipment allocated for the construction thereof and all items of buyer‘s supply actually delivered to the builder shall be at the risk of the builder， who shall at its own expense keep the same insured for a sum not less than 110% of the aggregate sum of the contract price plus the value of the items of buyer’s supply with an approved insurer or insurers and in respect of and against all ordinary yacht building risks， being fire， storm， theft， flood， lightening， explosion， docking， undocking， launching， salvage， removal of wreck， strikes， civil commotion， malicious damage， sabotage and vandalism.
2） buyers supply items will be delivered to the builder at xinhui port， at which point the risk for the items will pass to the builder.
3） a certificate of insurance showing that the necessary cover is in place shall be delivered to the buyer if so required.
4） in the event of an actual， constructive， compromised or arranged total loss of the yacht prior to delivery of the same to the buyer， either the buyer or the builder shall be entitled to terminate this contract by serving up on the builder or the buyer， as the case may be， written notice of termination， such notice to be dispatched within fourteen days of the date upon which the insurers accept that the yacht has become an actual constructive， compromised or arranged total loss.
5） in the event of any loss or damage being sustained by the yacht prior to delivery which does not constitute an actual， constructive， compromised or arranged total loss， the builder shall repair and make good that loss or damage （hereinafter referred to as a ‘partial loss’） at the cost of the builder and whether or not sufficient insurance funds may be available.