2. REPAIR; USE AND PROCEDURE; VENUE .
2.1 At its single cost, Borrower shall: (a) repair and keep the gear in good shape and working purchase and supply and install all replacement components or any other products when necessary to so keep the apparatus or whenever needed by relevant legislation or legislation, which components or products shall immediately be area of the gear; (b) usage and operate the apparatus in a careful way into the normal length of its company and just for the purposes which is why it absolutely was developed in conformity aided by the manufacturers guarantee demands, and conform to all legal guidelines regarding the gear, and get all licenses or licenses essential to install, make use of 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 situated. Notwithstanding such a thing towards the contrary included herein, Borrower may remove a motor through the Airframe and install a motor on another airframe owned or leased by Borrower so long as: (i) the motor doesn’t be susceptible to any Lien (aside from loan providers safety interest) or claim of ownership; and (ii) Borrower installs an upgraded motor in the Airframe. Airframe means the airframe described regarding the Schedule A-1 connected hereto. Motor shall mean any among the engines described regarding the Schedule A-1 connected hereto. Replacement Engine shall mean an motor of the identical make and model (or a greater model engine) whilst the motor.
2.2 The apparatus will never be operated, utilized or found outside the united states (United States Of America) by Borrower or just about any other celebration; supplied, that Borrower may temporarily utilize, run and find the gear beyond your United States Of America
(any nation or jurisdiction apart from the USA hereinafter called an international Jurisdiction) provided that all the following conditions are happy: (a) the Geneva meeting regarding the Overseas Recognition of Rights in Aircraft alongside the necessary enacting guidelines, regulations for such Geneva Convention (or some comparable treaty, legal guidelines) will probably be in place in virtually any such international Jurisdiction; (b) any notices, statements, papers and instruments necessary or expected to be filed in every such international Jurisdiction for the procedure, make use of or location associated with the gear therein shall have now been filed according to relevant legislation and regulation and Borrower shall offer 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 the time and will be insured prior to the legal guidelines of each Foreign Jurisdiction in or payday loans Illinois higher that the gear would be operated; (d) the apparatus won’t be registered underneath the legislation of any international Jurisdiction and shall remain subscribed underneath the Act all the time; and ( e) the apparatus shall never be used, operated or situated in any international Jurisdiction if during the time of such usage, procedure or location (i) the insurance coverage within the gear will never let the use, procedure or precise location of the gear in such Foreign Jurisdiction or such use, procedure or location would otherwise void, bring about the termination of, restriction or reduce the protection given by the applicable 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 threat of war (declared or civil), of other hostilities or of confiscation, seizure or detention associated with the Equipment in such international Jurisdiction, or (iv) america won’t have diplomatic relations with such international Jurisdiction. The gear will be hangered in the location specified on Schedule A-1.
3. INSURANCE. At its sole cost, Borrower all the time shall maintain the Equipment insured against all dangers of loss or harm out of every cause whatsoever (including, without limitation, standard war danger insurance plan) for a quantity no less than the higher associated with the complete replacement worth of the gear or 102per cent of this outstanding major stability of this Note. All insurers will be fairly satisfactory to Lender. Borrower shall deliver to Lender satisfactory proof of such protection. Profits of every insurance coverage addressing harm or loss in the gear will probably be payable to Lender as loss payee and will probably be used since set forth in Section 4 below. If a meeting of Default does occur and it is continuing, then Borrower immediately appoints Lender as Borrowers attorney-in-fact with full energy and authority instead 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 1 month prior written notice of every termination of these policy and can require that Lenders passions remain insured regardless of any work, mistake, omission, misrepresentation or neglect of Borrower. The insurance coverage maintained by Borrower will probably be main without the right of share from insurance coverage which may be maintained by Lender.
4. LOSS OR HARM.
Borrower bears the whole chance of loss, theft, harm or destruction of Equipment in whole or in component from any explanation whatsoever (Casualty Loss). No Casualty Loss to Equipment shall alleviate Borrower from the responsibility to cover the installment payments or from some other responsibility under this Agreement. In the case of Casualty Loss to your product of gear, Borrower shall instantly alert Lender of exactly the same and Borrower shall, if that’s the case directed by Lender, straight away fix the exact same. If Lender determines that the apparatus has suffered a Casualty Loss beyond repair or perhaps a Casualty Loss which considerably and completely decreases the reasonable market value of the gear (Lost Equipment), then Borrower, during the option of Lender, shall: (1) straight away change the Lost gear with comparable gear in good repair, condition and working purchase free and away from any Liens and deliver to Lender a bill of sale within the replacement gear, by which occasion such replacement gear shall automatically be Equipment under this contract; or (2) from the installment repayment deadline that will be at the very least 30 but a maximum of 60 times following the date regarding the Casualty Loss (Loss repayment deadline), pay 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 perhaps the Note and the staying major stability regarding the Note as associated with the Loss Payment deadline as decided by Lenders records. Upon re re payment by Borrower of all of the amounts due beneath the above clause (2), the protection interest associated with the Lender into the Lost Equipment will end.
5. FEES. Borrower will probably pay quickly when due all fees, assessments and governmental costs upon or against Borrower, the Collateral or even the home or operations of Borrower, in each instance before exact exact same becomes delinquent and before charges accrue thereon, unless and also to the degree that exact exact same are now being contested in good faith by appropriate procedures.