Common use of Event of Loss to the Aircraft Clause in Contracts

Event of Loss to the Aircraft. If an Event of Loss to the Airframe (and any Engine(s) installed thereon) occurs, Borrower shall promptly (and in any event within fifteen (15) days after such occurrence, or, if later, within fifteen (15) days after the determination that an Event of Loss has occurred, provided that such determination is promptly made) notify Security Agent of such Event of Loss. Within sixty (60) days after such occurrence, Borrower shall notify Security Agent of Borrower’s election either to replace the Airframe and any such Engine(s) as provided under Section 4.5(a)(1) or to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2) (and if Borrower does not notify Security Agent of such election within the 60-day time period, Borrower shall be deemed to have elected to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2)): (1) If Borrower elects to replace the Airframe and any such Engine(s), Borrower shall, subject to the satisfaction of the conditions in Section 4.5(c), as promptly as possible and in any event within 120 days after the occurrence of such Event of Loss, cause to be subjected to the Lien of this Mortgage, in replacement of the Airframe with respect to which the Event of Loss occurred, a Replacement Airframe and, if any Engine was installed on the Airframe when it suffered the Event of Loss, a Replacement Engine therefor; provided, that if Borrower does not perform its obligation to effect such replacement under this clause (1) during the 120-day period provided herein, it shall pay the amounts required to be paid pursuant to and within the time frame specified in clause (2) below. (2) If Borrower elects to make a payment for such Event of Loss to the Airframe, Borrower shall make a payment to Security Agent for purposes of redeeming Equipment Notes in accordance with Section 2.9 on a date on or before the Business Day following the earlier of (aa) the 120th day after the occurrence of such Event of Loss, and (bb) the third (3rd) day after the receipt of insurance proceeds with respect to such Event of Loss (but in any event not earlier than the date of Borrower’s election under Section 4.5(a) to make payment under this Section 4.5(a)(2)); and upon such payment and payment of all other Secured Obligations then due and payable, Security Agent shall, at Borrower’s cost and expense, release from the Lien of this Mortgage, and discharge from the International Registry the registration of the International Interest created by this Mortgage (and any other registered interests in favor of Security Agent) as it relates to, the Airframe and the Engines, by executing and delivering to Borrower all documents that Borrower reasonably requests to evidence such release or discharge. Borrower may extend the period set forth in clause (1) above for an additional thirty (30) days or the period set forth in clause (2) above for an additional sixty (60) days if (aa) Borrower provides Security Agent with a cash payment equal to the then unpaid Original Amount of the Equipment Notes, such payment to be held by Security Agent as security for Borrower’s obligations under this Section 4.5, (bb) Security Agent shall have received the insurance proceeds with respect to such loss and such proceeds are at least equal to the then unpaid Original Amount of the Equipment Notes or (cc) any combination of (aa) and (bb) shall result in Security Agent holding funds as security for Borrower’s obligations under this Section 4.5 equal to the then unpaid Original Amount of the Equipment Notes.

Event of Loss to the Aircraft. If an Event of Loss to the Airframe (and any Engine(s) installed thereon) occurs, Borrower shall promptly (and in any event within fifteen (15) days after such occurrence, or, if later, within fifteen (15) days after the determination that an Event of Loss has occurred, provided that such determination is promptly made) notify Security Agent Mortgagee of such Event of Loss. Within sixty (60) 60 days after such occurrence, Borrower shall notify Security Agent Mortgagee of Borrower’s election either to replace the Airframe and any such Engine(s) as provided under Section 4.5(a)(1) or to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2) (and if Borrower does not notify Security Agent Mortgagee of such election within the 60-day time period, Borrower shall be deemed to have elected to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2)): (1) If Borrower elects to replace the Airframe and any such Engine(s), Borrower shall, subject to the satisfaction of the conditions in Section 4.5(c), as promptly as possible and in any event within 120 150 days after the occurrence of such Event of Loss, cause to be subjected to the Lien of this Mortgage, in replacement of the Airframe with respect to which the Event of Loss occurred, a Replacement Airframe and, if any Engine was installed on the Airframe when it suffered the Event of Loss, a Replacement Engine therefor; provided, that if Borrower does not perform its obligation to effect such replacement under this clause (1) during the 120150-day period provided herein, it shall pay the amounts required to be paid pursuant to and within the time frame specified in clause (2) below. (2) If Borrower elects to make a payment for such Event of Loss to the Airframe, Borrower shall make a payment to Security Agent Mortgagee for purposes of redeeming Equipment Notes in accordance with Section 2.9 on a date on or before the Business Day following the earlier of (aa) the 120th 150th day after the occurrence of such Event of Loss, and (bb) the third (3rd) day Business Day after the receipt of insurance proceeds with respect to such Event of Loss (but in any event not earlier than the date of Borrower’s election under Section 4.5(a) to make payment under this Section 4.5(a)(2)); and upon such payment and payment of all other Secured Obligations then due and payable, Security Agent Mortgagee shall, at Borrower’s cost and expense, release from the Lien of this Mortgage, and discharge from the International Registry the registration of the International Interest created by this Mortgage (and any other registered interests in favor of Security Agent) as it relates to, the Airframe and the Engines, by executing and delivering to Borrower all documents that Borrower reasonably requests to evidence such release or dischargerelease. Borrower may extend the period set forth in clause (1) above for an additional thirty (30) 30 days or the period set forth in clause (2) above for an additional sixty (60) addition 60 days if (aa) Borrower provides Security Agent Mortgagee with a cash payment equal to the then unpaid Original Amount of the Equipment Notes, such payment to be held by Security Agent Mortgagee as security for Borrower’s obligations under this Section 4.5, (bb) Security Agent Mortgagee shall have received the insurance proceeds with respect to such loss and such proceeds are at least equal to the then unpaid Original Amount of the Equipment Notes or (cc) any combination of (aa) and (bb) shall result in Security Agent Mortgagee holding funds as security for Borrower’s obligations under this Section 4.5 equal to the then unpaid Original Amount of the Equipment Notes.

Event of Loss to the Aircraft. If an Event of Loss to the Airframe (and any Engine(s) installed thereon) occurs, Borrower shall promptly (and in any event within fifteen (15) days after such occurrence, or, if later, within fifteen (15) days after the determination that an Event of Loss has occurred, provided that such determination is promptly made) notify Security Agent Mortgagee of such Event of Loss. Within sixty (60) 60 days after such occurrence, Borrower shall notify Security Agent Mortgagee of Borrower’s election either to replace the Airframe and any such Engine(s) as provided under Section 4.5(a)(1) or to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2) (and if Borrower does not notify Security Agent Mortgagee of such election within the 60-day time period, Borrower shall be deemed to have elected to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2)): (1) If Borrower elects to replace the Airframe and any such Engine(s), Borrower shall, subject to the satisfaction of the conditions in Section 4.5(c), as promptly as possible and in any event within 120 150 days after the occurrence of such Event of Loss, cause to be subjected to the Lien of this Mortgage, in replacement of the Airframe with respect to which the Event of Loss occurred, a Replacement Airframe and, if any Engine was installed on the Airframe when it suffered the Event of Loss, a Replacement Engine therefor; provided, that if Borrower does not perform its obligation to effect such replacement under this clause (1) during the 120150-day period provided herein, it shall pay the amounts required to be paid pursuant to and within the time frame specified in clause (2) below. (2) If Borrower elects to make a payment for such Event of Loss to the Airframe, Borrower shall make a payment to Security Agent Mortgagee for purposes of redeeming Equipment Notes in accordance with Section 2.9 on a date on or before the Business Day following the earlier of (aa) the 120th 150th day after the occurrence of such Event of Loss, and (bb) the third (3rd) day Business Day after the receipt of insurance proceeds with respect to such Event of Loss (but in any event not earlier than the date of Borrower’s election under Section 4.5(a) to make payment under this Section 4.5(a)(2)); and upon such payment and payment of all other Secured Obligations then due and payable, Security Agent Mortgagee shall, at Borrower’s cost and expense, release from the Lien of this Mortgage, and discharge from the International Registry the registration of the International Interest created by this Mortgage (and any other registered interests in favor of Security Agent) as it relates to, the Airframe and the Engines, by executing and delivering to Borrower all documents that Borrower reasonably requests to evidence such release or and discharge. Borrower may extend the period set forth in clause (1) above for an additional thirty (30) 30 days or the period set forth in clause (2) above for an additional sixty (60) addition 60 days if (aa) Borrower provides Security Agent Mortgagee with a cash payment equal to the then unpaid Original Amount of the Equipment Notes, such payment to be held by Security Agent Mortgagee as security for Borrower’s obligations under this Section 4.5, (bb) Security Agent Mortgagee shall have received the insurance proceeds with respect to such loss and such proceeds are at least equal to the then unpaid Original Amount of the Equipment Notes or (cc) any combination of (aa) and (bb) shall result in Security Agent Mortgagee holding funds as security for Borrower’s obligations under this Section 4.5 equal to the then unpaid Original Amount of the Equipment Notes.

Event of Loss to the Aircraft. If an Event of Loss to the Airframe (and any Engine(s) installed thereon) occurs, Borrower shall promptly (and in any event within fifteen (15) days after such occurrence, or, if later, within fifteen (15) days after the determination that an Event of Loss has occurred, provided that such determination is promptly made) notify Security Agent of such Event of Loss. Within sixty (60) days after such occurrence, Borrower shall notify Security Agent of Borrower’s election either to replace the Airframe and any such Engine(s) as provided under Section 4.5(a)(1) or to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2) (and if Borrower does not notify Security Agent of such election within the 60-day time period, Borrower shall be deemed to have elected to make payment in respect of such Event of Loss as provided under Section 4.5(a)(2)): (1) If Borrower elects to replace the Airframe and any such Engine(s), Borrower shall, subject to the satisfaction of the conditions in Section 4.5(c), as promptly as possible and in any event within 120 days after the occurrence of such Event of Loss, cause to be subjected to the Lien of this Mortgage, in replacement of the Airframe with respect to which the Event of Loss occurred, a Replacement Airframe and, if any Engine was installed on the Airframe when it suffered the Event of Loss, a Replacement Engine therefor; provided, that if Borrower does not perform its obligation to effect such replacement under this clause (1) during the 120-day period provided herein, it shall pay the amounts required to be paid pursuant to and within the time frame specified in clause (2) below. (2) If Borrower elects to make a payment for such Event of Loss to the Airframe, Borrower shall make a payment to Security Agent for purposes of redeeming Equipment Notes in accordance with Section 2.9 on a date on or before the Business Day following the earlier of (aa) the 120th day after the occurrence of such Event of Loss, and (bb) the third (3rd) day after the receipt of insurance proceeds with respect to such Event of Loss (but in any event not earlier than the date of Borrower’s election under Section 4.5(a) to make payment under this Section 4.5(a)(2)); and upon such payment and payment of all other Secured Obligations then due and payable, Security Agent shall, at Borrower’s cost and expense, release from the Lien of this Mortgage, and discharge from the International Registry the registration of the International Interest created by this Mortgage (and any other registered interests in favor of Security Agent) as it relates to, the Airframe and the Engines, by executing and delivering to Borrower all documents that Borrower reasonably requests to evidence such release or dischargerelease. Borrower may extend the period set forth in clause (1) above for an additional thirty (30) days or the period set forth in clause (2) above for an additional sixty (60) days if (aa) Borrower provides Security Agent with a cash payment equal to the then unpaid Original Amount of the Equipment Notes, such payment to be held by Security Agent as security for Borrower’s obligations under this Section 4.5, (bb) Security Agent shall have received the insurance proceeds with respect to such loss and such proceeds are at least equal to the then unpaid Original Amount of the Equipment Notes or (cc) any combination of (aa) and (bb) shall result in Security Agent holding funds as security for Borrower’s obligations under this Section 4.5 equal to the then unpaid Original Amount of the Equipment Notes.