Aircraft Collateral Insurance Clause Samples
The Aircraft Collateral Insurance clause requires that insurance coverage be maintained on aircraft used as collateral in a financial or leasing arrangement. This typically means the aircraft must be insured against risks such as damage, loss, or liability, with the lender or lessor named as an additional insured or loss payee. By mandating this insurance, the clause protects the lender’s or lessor’s financial interest in the aircraft, ensuring that their investment is safeguarded in the event of an accident or loss.
Aircraft Collateral Insurance. Each Borrower shall, or shall cause each relevant Lessee to, at Borrowers’ expense, maintain insurance respecting each of Borrower’s and its Subsidiaries’ assets wherever located, covering liabilities, losses or damages as are customarily insured against by other Persons engaged in same or similar businesses and similarly situated and located including, without limitation, the following coverages: