2. REPAIR; USE AND PROCEDURE; VENUE .
2.1 At its single cost, Borrower shall: (a) repair and continue maintaining the gear in good shape and working purchase and supply and install all replacement parts or other products when expected to therefore keep the gear or whenever needed by applicable legislation or legislation, which components or products shall immediately be an element of the gear; (b) usage and operate the Equipment in a careful way within the normal span of its company and just when it comes to purposes which is why it absolutely was developed in accordance aided by the manufacturers guarantee demands, and conform to all legal guidelines regarding the gear, and acquire all licenses or licenses essential to install, make use of or run the apparatus; (c) make no alterations, improvements, subtractions, improvements or improvements to your gear with an expense more than $150,000.00 The equipment in accordance with the FAA approved maintenance program, manufacturers approved maintenance program, FAA airworthiness directives, and the manufacturers alert bulletins and urgently recommended service bulletins and procedures, and perform all duties and tasks which would be required to maintain the Equipment, including the engines, in full compliance with the manufacturers specification (i) so as to keep the Equipment in as good operating condition as when delivered to the Borrower hereunder, ordinary wear and tear excepted, and (ii) so as to keep the Equipment in such operating condition as may be necessary to enable the airworthiness certification of such Equipment to be maintained in good standing at all times under the Act (as defined in Section 19 hereof); and (e) maintain all records, logs and other materials required by the FAA to be maintained in respect of the Equipment without lenders prior written consent (which consent will not be unreasonably withheld), but any such alterations, additions, upgrades or improvements shall automatically become part of the Equipment; (d) maintain, inspect, service and repair, overhaul and test. Lender has got the right upon reasonable notice to Borrower to examine the apparatus wherever situated. Notwithstanding any such thing towards the contrary included herein, Borrower may remove A motor through the Airframe and install a motor on another airframe leased or owned by Borrower so long as: (i) the motor doesn’t be susceptible to any Lien (except that loan providers security interest) or claim of ownership; and (ii) Borrower installs an upgraded Engine regarding the Airframe. Airframe means the airframe described regarding the Schedule A-1 connected hereto. Motor shall mean any one of several engines described regarding the Schedule A-1 attached hereto. Replacement Engine shall suggest an motor of the same make and model (or a model that is improved) whilst the motor.
2.2 The gear won’t be operated, utilized or positioned not in the united states (USA) by Borrower or just about any other party; supplied, that Borrower may temporarily utilize, run and find the gear beyond your United States Of America
(any nation or jurisdiction apart from the United States Of America hereinafter called A international Jurisdiction) provided that all the following conditions are pleased: (a) the Geneva meeting in the Overseas Recognition of Rights in Aircraft with the necessary enacting regulations, regulations for such Geneva meeting (or some comparable treaty, legal guidelines) will probably be in place in every such international Jurisdiction; (b) any notices, statements, papers and instruments necessary or needed to be filed in just about any such international Jurisdiction when it comes to procedure, use or location regarding the gear therein shall are filed according to relevant legislation and legislation and Borrower shall provide file stamped copies to Lender upon Lenders request every once in awhile; (c) the apparatus shall remain insured relative to the regards to this contract all of the time and will probably be insured relative to the legal guidelines of each Foreign Jurisdiction in or higher that the gear will undoubtedly be operated; (d) the gear will never be registered beneath the guidelines of any international Jurisdiction and shall remain subscribed underneath the Act all the time; and ( ag e) the gear shall Oregon payday loans direct lenders not be utilized, operated or based in any international Jurisdiction if during the time of such usage, operation or location (i) the insurance coverage within the gear wouldn’t normally enable the usage, procedure or located area of the gear in such international Jurisdiction or such usage, procedure or location would otherwise void, lead to the termination of, limitation or reduce the coverage given by the relevant insurance coverage, or (ii) any legislation, legislation or presidential administrator order for the United States Of America forbids the employment, procedure or precise location of the gear in such international Jurisdiction, or (iii) there is certainly any product danger of war (declared or civil), of other hostilities or of confiscation, seizure or detention regarding the gear in such international Jurisdiction, or (iv) the united states won’t have diplomatic relations with such jurisdiction that is foreign. The apparatus will be hangered during the location specified on Schedule A-1.
3. INSURANCE. At its single expense, Borrower all of the time shall keep consitently the Equipment insured against all dangers of loss or harm out of every cause whatsoever (including, without limitation, standard war danger insurance policy) for a sum no less than the more of this complete replacement value of the gear or 102per cent of this outstanding major stability regarding the Note. All insurers will be fairly satisfactory to Lender. Borrower shall deliver to Lender satisfactory proof of such protection. Profits of every insurance coverage damage that is covering loss in the Equipment will be payable to Lender as loss payee and will be used since set forth in Section 4 below. If a conference of Default does occur and it is continuing, then Borrower immediately appoints Lender as Borrowers attorney-in-fact with complete energy and authority rather than Borrower plus in the title of Borrower or Lender to produce claim for, accept payment of, and indication and endorse all papers, checks or drafts for loss or harm under such policy. Each insurance plan will need that the insurer give Lender at least thirty day period prior written notice of any termination of these policy and can require that Lenders passions remain insured aside from any work, mistake, omission, neglect or misrepresentation of Borrower. The insurance coverage maintained by Borrower will be main without the right of contribution from insurance coverage which may be maintained by Lender.
4. LOSS OR DAMAGE.
Borrower bears the whole danger of loss, theft, harm or destruction of Equipment in whole or perhaps in component from any explanation whatsoever (Casualty Loss). No Casualty Loss to Equipment shall alleviate Borrower from the obligation to cover the payments or from any kind of responsibility under this contract. in case of Casualty Loss to your product of gear, Borrower shall notify Lender of immediately exactly the same and Borrower shall, in that case directed by Lender, instantly fix the exact same. Then Borrower, at the option of Lender, shall: (1) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens and deliver to Lender a bill of sale covering the replacement equipment, in which event such replacement equipment shall automatically be Equipment under this Agreement; or (2) on the installment payment due date which is at least 30 but no more than 60 days after the date of the Casualty Loss (Loss Payment Due Date), pay to Lender all accrued and unpaid principal, interest, late charges and other amounts then due and payable by Borrower under this Agreement or the Note plus the remaining principal balance of the Note as of the Loss Payment Due Date as determined by Lenders records if Lender determines that the Equipment has suffered a Casualty Loss beyond repair or a Casualty Loss which substantially and permanently reduces the fair market value of the Equipment (Lost Equipment. Upon re re re payment by Borrower of all of the amounts due beneath the clause that is above2), the safety interest of this Lender within the Lost Equipment will end.
5. FEES. Borrower can pay quickly whenever due all fees, assessments and charges that are governmental or against Borrower, the Collateral or even the home or operations of Borrower, in each situation before same becomes delinquent and before charges accrue thereon, unless also to the degree that exact same are now being contested in good faith by appropriate procedures.