2. REPAIR; USE AND PROCEDURE; VENUE .
2.1 At its single cost, Borrower shall: (a) repair and keep the apparatus in good shape and working purchase and supply and install all replacement components or other products when expected to therefore keep the apparatus or whenever required by relevant legislation or legislation, which components or products shall immediately be the main gear; (b) usage and operate the apparatus in a careful way within the normal length of its company and just when it comes to purposes which is why it had been developed in conformity with all the manufacturers guarantee needs, and adhere to all legal guidelines associated with the Equipment, and acquire all licenses or licenses required to install, use or run the apparatus; (c) make no alterations, improvements, subtractions, improvements or improvements into the gear with a price 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 gets the right upon reasonable notice to Borrower to examine the gear wherever located. Notwithstanding any such thing into 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 will not be susceptible to any Lien (apart from loan providers security interest) or claim of ownership; and (ii) Borrower installs an alternative motor regarding the Airframe. Airframe means the airframe described regarding the Schedule A-1 connected hereto. Engine shall mean any one of many engines described on the Schedule A-1 connected hereto. Replacement Engine shall suggest an engine of the identical make and model (or a greater model engine) due to the fact motor.
2.2 the apparatus will never be operated, utilized or situated outside the united states (USA) by Borrower or just about any other celebration; supplied, that Borrower may temporarily make use of, run and locate the apparatus beyond your United States Of America
(any nation or jurisdiction apart from the United States Of America hereinafter called A international Jurisdiction) as long as every one of the following conditions are pleased: (a) the Geneva meeting in the Overseas Recognition of Rights in Aircraft alongside the necessary enacting laws and regulations, regulations for such Geneva meeting (or some comparable treaty, legal guidelines) will probably be in place in any such international Jurisdiction; (b) any notices, statements, papers and instruments necessary or needed to be filed in every such international Jurisdiction when it comes to procedure, utilize or location associated with gear therein shall have already been filed according to relevant legislation and legislation and Borrower shall offer file stamped copies to Lender upon Lenders request every once in awhile; (c) the gear shall remain insured prior 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 would be operated; (d) the gear won’t be registered underneath the laws and regulations of any international Jurisdiction and shall remain subscribed underneath the Act all the time; and ( ag ag e) the apparatus shall never be utilized, operated or based in any international Jurisdiction if during the time of such use, procedure or location (i) the insurance coverage within the gear will never let the usage, procedure or precise location 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 protection given by the relevant insurance plan, or (ii) any legislation, legislation or presidential professional order for the United States Of America forbids the utilization, operation or precise location of the gear in such international Jurisdiction, or (iii) there was any material danger of war (declared or civil), of other hostilities or of confiscation, seizure or detention regarding the gear in such international Jurisdiction, or (iv) america doesn’t have diplomatic relations with such jurisdiction that is foreign. The gear will probably be hangered at the location specified on Schedule A-1.
3. INSURANCE. At its single expense, Borrower all the time shall keep carefully 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 for around the higher associated with the complete replacement value of the apparatus or 102per cent regarding the outstanding major stability associated with the Note. All insurers will be fairly satisfactory to Lender. Borrower shall deliver to Lender satisfactory proof such protection. Profits of any insurance coverage covering harm or loss in the gear will probably be payable to Lender as loss payee and will be used because set forth in Section 4 below. If a meeting of Default happens and it is continuing, then Borrower immediately appoints Lender as Borrowers attorney-in-fact with full energy and authority in place of Borrower plus in the title of Borrower or Lender to create claim for, accept payment of, and indication and endorse all papers, checks or drafts for loss or harm under such policy. Each insurance coverage will need that the insurer give Lender at least thirty days prior written notice of every termination of these policy and can require that Lenders passions remain insured aside from any work, mistake, omission, misrepresentation or neglect of Borrower. The insurance coverage maintained by Borrower will be main without the right of share from insurance coverage that could be maintained by Lender.
4. LOSS DAMAGE that is OR.
Borrower bears the whole threat 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 relieve Borrower from the obligation to pay for the installments or from just about any responsibility under this contract. In https://www.samedayinstallmentloans.net/payday-loans-vt/ case of Casualty Loss to virtually any product of gear, Borrower shall notify Lender of immediately the exact same and Borrower shall, if that’s the case directed by Lender, straight away fix exactly the same. If Lender determines that the apparatus has suffered a Casualty Loss beyond fix or perhaps a Casualty Loss which considerably and completely decreases the reasonable market worth of the gear (Lost gear), then Borrower, during the option of Lender, shall: (1) instantly change the Lost gear with comparable gear in good fix, condition and dealing purchase free and away from any Liens and deliver to Lender a bill of sale since the replacement equipment, by which occasion such replacement gear shall immediately be gear under this contract; or (2) in the installment repayment deadline which can be at the least 30 but a maximum of 60 times following the date regarding the Casualty Loss (Loss repayment deadline), spend to Lender all accrued and unpaid principal, interest, belated fees as well as other quantities then due and payable by Borrower under this contract or even the Note and the staying major balance associated with the Note as associated with the Loss Payment Due Date as decided by Lenders records. Upon re re payment by Borrower of most amounts due beneath the clause that is above2), the safety interest of this Lender within the Lost Equipment will end.
5. FEES. Borrower will probably 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 exact same are now being contested in good faith by appropriate procedures.