Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance. (ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 11 contracts
Samples: Note Purchase Agreement (American Airlines Inc), Note Purchase Agreement (American Airlines Inc), Note Purchase Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk risk, hijacking and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany (or Permitted Lessee)). Any policies carried in accordance with this Section 7.06(b7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the CompanyCompany or its designee, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C3) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (Company, any Permitted Lessee or any Permitted Lesseeother insured (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s (or any Permitted Lessee’s) hull war risk risk, hijacking, and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, and each Liquidity Provider, or if such insurance is allowed to lapse canceled for nonpayment of premium, such cancellation, cancellation or change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk risk, hijacking, or allied perils coverage) after receipt by issuance to the Specified Persons Additional Insureds of written notice from or on behalf of such insurers of such cancellation, change cancellation or lapsechange, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F6) be primary without right of contribution from any other insurance include a 50/50 provisional claims settlement clause in the event that may be carried by any Specified Person separate policies are maintained with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engineall-risk aircraft hull insurance and war risk, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (hijacking and in the amounts) that are the subject of such indemnification or allied perils hull insurance. To the extent that the Company’s war risk risk, hijacking, and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, cancellation or change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, to such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company (or Permitted Lessee) may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time are applicable to airframes or and engines owned or leased by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during for the Aircraft or, with respect to a non-flown Engine, the replacement value of such period that such Airframe is on the ground and not in operationEngine.
Appears in 7 contracts
Samples: Indenture and Security Agreement (Delta Air Lines, Inc.), Indenture and Security Agreement (Delta Air Lines, Inc.), Indenture and Security Agreement (Delta Air Lines, Inc.)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the CompanyCompany or such Permitted Lessee, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified PersonsAdditional Insureds’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of such insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company or, if applicable, such Permitted Lessee has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative DocumentsDocuments or, if applicable, pursuant to the lease to such Permitted Lessee, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft Aircraft, the Airframe or any Engine, or in the case of any requisition for use of the Aircraft Aircraft, the Airframe or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insured of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person Additional Insured immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease to a Permitted Lessee is then in effect, by the such Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 7 contracts
Samples: Indenture and Security Agreement (Jetblue Airways Corp), Indenture and Security Agreement (Jetblue Airways Corp), Indenture and Security Agreement (Alaska Air Group, Inc.)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the Company, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (Company, any Permitted Lessee or any Permitted Lesseeother insured (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s hull war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, and each Liquidity ProviderProvider or, or if such insurance is allowed to lapse canceled for nonpayment of premium, such cancellation, cancellation or change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change cancellation or lapsechange, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, and (F6) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the Company’s war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, cancellation or change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, to such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time are applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 4 contracts
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/), Indenture and Security Agreement (Delta Air Lines Inc /De/), Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 4 contracts
Samples: Note Purchase Agreement (American Airlines Inc), Note Purchase Agreement (American Airlines Inc), Note Purchase Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to the aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall shall: (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall has not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation by Company of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, Policy Provider and each Liquidity Provider, Providers or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 2 contracts
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/), Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii(ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)Section 7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk risk, hijacking and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany (or Permitted Lessee)). Any policies carried in accordance with this Section 7.06(bSection 7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the CompanyCompany or its designee, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C3) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (Company, any Permitted Lessee or any Permitted Lesseeother insured (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s (or any Permitted Lessee’s) hull war risk risk, hijacking, and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to Loan Trustee, and the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse canceled for nonpayment of premium, such cancellation, cancellation or change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk risk, hijacking, or allied perils coverage) after receipt by issuance to the Specified Persons Additional Insureds of written notice from or on behalf of such insurers of such cancellation, change cancellation or lapsechange, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys monies due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F6) be primary without right of contribution from any other insurance include a 50/50 provisional claims settlement clause in the event that may be carried by any Specified Person separate policies are maintained with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engineall-risk aircraft hull insurance and war risk, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (hijacking and in the amounts) that are the subject of such indemnification or allied perils hull insurance. To the extent that the Company’s war risk risk, hijacking, and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, cancellation or change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, to such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company (or Permitted Lessee) may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i(i) above, and subject to self-insurance to the extent permitted by Section 7.06(c)Section 7.06(d) below, insurance otherwise conforming with the provisions of said clause (i(i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time are applicable to airframes or and engines owned or leased by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c)Section 7.06(d) below, the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during for the Aircraft or, with respect to a non-flown Engine, the replacement value of such period that such Airframe is on the ground and not in operationEngine.
Appears in 2 contracts
Samples: Indenture and Security Agreement (Fedex Corp), Indenture and Security Agreement (Fedex Corp)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to the aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall shall: (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall has not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation by Company of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, Provider or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 2 contracts
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/), Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company Lessee to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c11(c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeLessor, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company Lessee (or, if a Sublease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted LesseeSublessee) with respect to other similar aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to the aircraft operated by corporations engaged Lessee (or, if a Sublease is then in effect, by the Permitted Sublessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes from time to time and Aircraft, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by Lessee, and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the Company, provided that such case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceLessee). Any policies carried in accordance with this Section 7.06(b11(b) and any policies taken out in substitution or replacement for any such policies shall shall: (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of Stipulated Loss Value for the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), Aircraft payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C F up to an amount equal to the amount of Stipulated Loss Value for the Loan Amount Aircraft for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee Lessor (or, as long as this the Indenture shall has not have been discharged, Loan Trustee) and that all other amounts shall be payable to the CompanyLessee, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to an amount equal to the amount of Stipulated Loss Value for the Loan Amount Aircraft shall be payable to Lessor (or, as long as the Indenture has not been discharged, Loan Trustee), (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (Lessee or any Permitted Lessee) other Person and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation by Lessee of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Delivery Date to the Lessor and Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company Lessee has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease sublease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the CompanyLessee, or an insurance policy issued by such government, against any risks which the Company Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b11(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operationbeing flown, the Company Lessee may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c11(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased operated by the Company Lessee (or, if a lease Sublease is then in effect, by the Permitted LesseeSublessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c11(c), the Company (or such Permitted Lessee) Lessee shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes during such period that such Airframe is on the ground and not in operationAircraft.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a or any Permitted Lessee, such Permitted Lessee) Lessee with respect to other aircraft owned or operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type and 55 in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beCompany; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine need be obtained only to the extent available at reasonable cost (as reasonably determined by the Company, provided that such Engine is covered by a separate policy of insurance). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)Company, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each the Liquidity Provider, Provider or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional 56 Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-self insurance in the manner and to the extent by way of deductibles specified in Section 7.06(c3.6(c), the Company (or, if applicable, the Permitted Lessee) shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Security Trustee, all-the Facility Agent or any Lender, all risk aircraft hull insurance covering the Aircraft and all-all risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk and allied perils insurance insurance, if and to the extent available from the same is maintained by FAA or the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routescommercial markets) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beLessee and operating similar aircraft and engines; provided that (A) such insurance (including self insurance by way of deductibles to the extent permitted self-insuranceby subsection (c) of this Section 3.6) shall at all times times, while the Aircraft is subject to this Indenture Security Agreement, be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and Insured Amount, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the CompanyCompany or such Permitted Lessee and (C) with respect to hull and hull-war risk insurance only, provided that such insurance shall contain a 50/50 Clause per Lloyd’s Aviation Underwriters’ Association Standard Policy Form AVS 103; provided, further that, so long as an Engine is attached to an aircraft other than the Aircraft, (x) such Engine is covered shall be insured in accordance with the terms of this Security Agreement, (y) the insured amount with respect to such aircraft shall be increased, if necessary, by a separate policy the value of insurancethe Engine and (z) such insurance shall name the Secured Parties as additional insureds in such insurance policy. Any policies carried in accordance with this Section 7.06(b3.6(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal the Loan Amount relating to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Aircraft, payable for any loss or damage constituting an Event of a Total Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of a threshold amount to be agreed by the amount set forth on Exhibit C parties up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of a Total Loss with respect to the Aircraft, shall be paid to the Loan Security Trustee as long as this Indenture Security Agreement shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default existsshall have occurred and be continuing, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Security Trustee, except in the case of a loss with respect to an Engine installed on an airframe other than the Airframe, in which case the Company (or any Permitted Lessee) shall endeavor to arrange for any payment of insurance proceeds in respect of such loss to be held for the account of Security Trustee whether such payment is made to the Company (or any Permitted Lessee) or any third party, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Security Trustee, the Facility Agent and each Lender in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or or, if applicable, any Permitted Lessee) Lessee and shall insure the Specified Persons’ Security Trustee’s, the Facility Agent’s and each Lender’s respective Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any or, if applicable, such Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Advance Date to the Loan Trustee and each Liquidity ProviderSecurity Trustee, the Facility Agent or any Lender or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Security Trustee or any Lender for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the Specified Persons Security Trustee, the Facility Agent or such Lenders, respectively, of written notice from such insurers of such cancellation, change or lapse, (D) provide that none of the Specified Persons Security Trustee, the Facility Agent or any Lender shall have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive any rights of (1) set-set off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Security Trustee, the Facility Agent or any Lender to the extent of any moneys due to the Specified Persons Security Trustee, the Facility Agent or such Lender and (2) subrogation against the Specified Persons Security Trustee, the Facility Agent or any Lender to the extent that the Company has waived its rights by its agreement agreements to indemnify the Specified Persons such party pursuant to the Operative Documents, Basic Agreements and (F) be primary without right of contribution from any other insurance that may be carried by the Security Trustee, the Facility Agent or any Specified Person Lender with respect to its Interests interests as such in the Aircraft. In the case of a lease or contract with any government Government in respect of the Aircraft or any Engine, or in the case of any requisition for use or hire of the Aircraft or any Engine by any governmentGovernment, a valid agreement by such government Government to indemnify the Company, or an insurance policy issued by such governmentGovernment, against any risks which that the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b3.6(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. In the case of a loss with respect to an engine (other than an Engine) installed on the Airframe, the Security Trustee shall hold any payment to it of any insurance proceeds in respect of such loss for the account of the Company or any other third party that is entitled to receive such proceeds. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person the Security Trustee, the Facility Agent or the Lenders of cancellation, change or lapse in the insurance as required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Security Trustee, the Facility Agent and the Lenders immediate notice of each cancellation or lapse of, or material change to, such insurance.
(iii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-self insurance by way of deductibles to the extent permitted by subsection (c) of this Section 7.06(c)3.6, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease Permitted Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-self insurance by way of deductibles to the extent permitted by subsection (c) of this Section 7.06(c)3.6, the Company (or such Permitted Lessee) Lessee shall maintain insurance against risk of loss or damage to such non-operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Insured Amount relating thereto during such period that such the Airframe or Engine is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(csubsection (c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeSpecified Persons, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (Lessee or, in the case of a lease sublease to a Permitted LesseeSublessee, such Permitted Lessee) Sublessee, with respect to other aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (Ax) such insurance (including the permitted self-insuranceinsurance specified in subsection (c)) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (By) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insuranceLessee. Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold Amount, up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLoss Payee, and that all other amounts shall be payable to the Company, Lessee or its designee unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Stipulated Loss Value shall be payable to the Loan Trustee, Loss Payee; (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests their respective interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), ; (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered to the Specified Persons on the Closing Delivery Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, ; (D) provide that the Specified Persons shall not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, ; (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has waived its rights by its agreement agreements to indemnify the Specified Persons pursuant to hereto or in the other Operative Documents, ; and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the AircraftPerson. In the case of a lease sublease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. The insurance provisions set forth above for the benefit of the Specified Persons shall only apply to the extent that Lessee has agreed to indemnify such Specified Person pursuant to the Operative Documents or a consent and acknowledgement referred to in Section 8.3.2(b) of the Participation Agreement and then only in such Specified Person’s capacity as Lessor, Trust Company, Owner Participant or Back-Leveraging Indemnified Person, as applicable. To the extent that the war war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Persons of cancellation, change or lapse in the insurance required hereunder, the Company Lessee hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each the Specified Person Persons immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company Lessee to establish and maintain self-insurance in the manner and to Annex C to Appendix B the extent specified in Section 7.06(csubsection (c), the Company shall Lessee will maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trusteeany Specified Person, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) Lessee or any permitted sublessee with respect to other aircraft owned or operated by the Company Lessee or such Permitted Lesseepermitted sublessee, as the case may be, on the same or similar routes) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided PROVIDED that (A) such insurance (including the permitted self-insurance) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insuranceLessee. Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall will (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C $[ ],1 up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall will be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLessor, and that all other amounts shall will be payable to the CompanyLessee, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall Stipulated Loss Value will be payable to the Loan TrusteeLessor, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall will not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall will insure the Specified Persons’ Interests their interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreaxxx xxatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, Specified Persons at the Commencement Time or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall will not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall will not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall will waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has waived its rights by its agreement agreements to indemnify the Specified Persons such party pursuant to the Operative Documents, this Lease and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests interests as such in the Aircraft. In the case of a lease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder under this Lease to insure against shall will be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company Lessee may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of __________________ 1 Amount varies according to aircraft type: MD80 - $4,000,000 B757 - $7,000,000 B767 - $10,000,000 DC9 - TBD Annex C to Appendix B insurance shall will be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) Lessee of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), the Company (or such Permitted Lessee) shall Lessee will maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Stipulated Loss Value during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or operated by such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall shall, at all times times, while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided provided, that such Engine is covered by a separate policy of insuranceinsurance and (C) with respect to hull and hull war-risk insurance only, such insurance shall contain a 50/50 Clause per Lloyd’s Aviation Underwriters’ Association Standard Policy Form AVS 103 or a similar 50/50 provisional claims settlement clause. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in Indenture and Security Agreement (Spirit 2015-1 EETC) [Reg. No.] excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default existsshall have occurred and be continuing, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons mailing of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) if and to the extent applicable, be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon Indenture and Security Agreement (Spirit 2015-1 EETC) [Reg. No.] receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(csubsection (c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeSpecified Persons, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (Lessee or, in the case of a lease sublease to a Permitted LesseeSublessee, such Permitted Lessee) Sublessee, with respect to other aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (Ax) such insurance (including the permitted self-insuranceinsurance specified in subsection (c)) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (By) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insuranceLessee. Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold Amount, up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLoss Payee, and that all other amounts shall be payable to the Company, Lessee or its designee unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Stipulated Loss Value shall be payable to the Loan Trustee, Loss Payee; (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests their respective interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), ; (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered to the Specified Persons on the Closing Delivery Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, ; (D) provide that the Specified Persons shall not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, ; (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has CT1001520_LA1_AAL_A320Family_EXECUTION LA1 - Lease Agreement waived its rights by its agreement agreements to indemnify the Specified Persons pursuant to hereto or in the other Operative Documents, ; and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the AircraftPerson. In the case of a lease sublease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. The insurance provisions set forth above for the benefit of the Specified Persons shall only apply to the extent that Lessee has agreed to indemnify such Specified Person pursuant to the Operative Documents or a consent and acknowledgement referred to in Section 8.3.2(b) of the Participation Agreement and then only in such Specified Person’s capacity as Lessor, Trust Company, Owner Participant or Back-Leveraging Indemnified Person, as applicable. To the extent that the war war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Persons of cancellation, change or lapse in the insurance required hereunder, the Company Lessee hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each the Specified Person Persons immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company Lessee may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(cspecified in subsection (c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) Lessee of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), the Company (or such Permitted Lessee) Lessee shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Stipulated Loss Value during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the CompanyCompany or such Permitted Lessee, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of such insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company or, if applicable, such Permitted Lessee has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative DocumentsDocuments or, if applicable, pursuant to the lease to such Permitted Lessee, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft Aircraft, the Airframe or any Engine, or in the case of any requisition for use of the Aircraft Aircraft, the Airframe or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease to a Permitted Lessee is then in effect, by the such Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a or any Permitted Lessee, such Permitted Lessee) Lessee with respect to other aircraft owned or operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beCompany; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine need be obtained only to the extent available at reasonable cost (as reasonably determined by the Company, provided that such Engine is covered by a separate policy of insurance). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date Date, plus Break Amount with respect to the Series G Notes (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)Company, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company American to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c5.06(c), the Company American shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeAgent or any Secured Party, all-risk aircraft hull insurance covering the each Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the an Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a American or any Permitted Lessee, such Permitted Lessee) Lessee with respect to other aircraft owned or operated by the Company American or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beAmerican; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the an Aircraft is subject to this Indenture Security Agreement be for an amount not less than 110% the Aircraft Value of the aggregate outstanding principal amount of the Equipment Notes from time to time such Aircraft and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insuranceAmerican. Any policies carried in accordance with this Section 7.06(b5.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable Aircraft Value for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C $10,000,000 up to the amount of the Loan Amount Aircraft Value for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee Agent as long as this Indenture the Security Agreement shall not have been discharged, and that all other amounts shall be American Airlines - Aircraft Security Agreement payable to the CompanyAmerican, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Aircraft Value shall be payable to the Loan TrusteeAgent, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Agent and each Secured Party in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) American and shall insure the Specified Persons’ Agent's and each Secured Party's Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)American, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any material adverse change is made in the policy that materially reduces the amount of insurance or affects the coverage certified in hereunder to any Secured Party or the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity ProviderAgent, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Agent or any Secured Party for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the Specified Persons Agent or such Secured Parties, respectively, of written notice from such insurers of such cancellation, change or lapse, (D) provide that none of the Specified Persons Agent or any Secured Party shall have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Agent or any Secured Party to the extent of any moneys due to the Specified Persons Agent or such Secured Party and (2) subrogation against the Specified Persons Agent or any Secured Party to the extent the Company that American has waived its rights by its agreement agreements to indemnify the Specified Persons such party pursuant to the Operative Documents, Financing Documents and (F) be primary without right of contribution from any other insurance that may be carried by the Agent or any Specified Person Secured Party with respect to its Interests interests as such in the Aircraft. In the case of a lease or contract with any the United States government in respect of the any Aircraft or any Engine, or in the case of any requisition for use of the any Aircraft or any Engine by any the United States government, a valid agreement by such government to indemnify the CompanyAmerican, or an any insurance policy issued by such government, against any risks which the Company that American is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b5.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the any Airframe or an Engine is on the ground and not in operation, the Company American may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by subsection (c) of this Section 7.06(c)5.06, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company American (or, if a permitted lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by subsection (c) of this Section 7.06(c)5.06, the Company (or such Permitted Lessee) American shall maintain insurance against risk of loss or damage to such non-operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Aircraft Value during such period that such Airframe or Engine is on the ground and not in operation.
Appears in 1 contract
Samples: Credit Agreement (Amr Corp)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(csubsection (c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeSpecified Persons, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (Lessee or, in the case of a lease sublease to a Permitted LesseeSublessee, such Permitted Lessee) Sublessee, with respect to other aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (Ax) such insurance (including the permitted self-insuranceinsurance specified in subsection (c)) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (By) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by Lessee (it being understood that nothing in the Companyimmediately preceding clause (y) is intended, provided and shall not be construed, to override the requirement set forth in Section 7(b) of having an Engine that is subject to a sublease or other transfer of possession pursuant to such Engine is Section 7(b) covered by a separate policy insurance that complies with the terms of insurancethis subsection (b)). Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold Amount, up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not LA 1 – Lease Agreement constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLoss Payee, and that all other amounts shall be payable to the Company, Lessee or its designee unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Stipulated Loss Value shall be payable to the Loan Trustee, Loss Payee; (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests their respective interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), ; (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered to the Specified Persons on the Closing Delivery Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, ; (D) provide that the Specified Persons shall not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, ; (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has waived its rights by its agreement agreements to indemnify the Specified Persons pursuant to hereto or in the other Operative Documents, and ; (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to Person; and (G) contain a 50/50 provisional claims settlement clause of the type contained in AVS 103 (or its Interests as equivalent), if such in the Aircrafta provision is available. In the case of a lease sublease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. The insurance provisions set forth above for the benefit of the Specified Persons shall only apply to the extent that Lessee has agreed to indemnify such Specified Person pursuant to the Operative Documents or a Lessee Consent and then only in such Specified Person’s capacity as Lessor, Trust Company, Owner Participant or Back-Leveraging Indemnified Person, as applicable. To the extent that the war war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Persons of cancellation, change or lapse in the insurance required hereunder, the Company Lessee hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each the Specified Person Persons immediate notice of each cancellation or lapse of, or material change to, such insurance.
. LA 1 – Lease Agreement (ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company Lessee may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(cspecified in subsection (c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) Lessee of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), the Company (or such Permitted Lessee) Lessee shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Stipulated Loss Value during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Samples: A320 Family Aircraft Purchase Agreement (American Airlines, Inc.)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or operated by such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall shall, at all times times, while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided provided, that such Engine is covered by a separate policy of insuranceinsurance and (C) with respect to hull and hull war-risk insurance only, such insurance shall contain a 50/50 Clause per Lloyd’s Aviation Underwriters’ Association Standard Policy Form AVS 103 or a similar 50/50 provisional claims settlement clause. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in 75 Indenture and Security Agreement (Spirit 2017-1 EETC) [Reg. No.] excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default existsshall have occurred and be continuing, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons mailing of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) if and to the extent applicable, be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon 76 Indenture and Security Agreement (Spirit 2017-1 EETC) [Reg. No.] receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement (Spirit Airlines, Inc.)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(csubsection (c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeSpecified Persons, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (Lessee or, in the case of a lease sublease to a Permitted LesseeSublessee, such Permitted Lessee) Sublessee, with respect to other aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (Ax) such insurance (including the permitted self-insuranceinsurance specified in subsection (c)) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (By) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insuranceLessee. Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold Amount, up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLoss Payee, and that all other amounts shall be payable to the Company, Lessee or its designee unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Stipulated Loss Value shall be payable to the Loan Trustee, Loss Payee; (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests their respective interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), ; (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered to the Specified Persons on the Closing Delivery Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, ; (D) provide that the Specified Persons shall not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, ; (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has waived its rights by its agreement agreements to indemnify the Specified Persons pursuant to hereto or in the other Operative Documents, ; and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the AircraftPerson. In the case of a lease sublease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. The insurance provisions set forth above for the benefit of the Specified Persons shall only apply to the extent that Lessee has agreed to indemnify such Specified Person pursuant to the Operative Documents or a consent and acknowledgement referred to in Section 8.3.2(b) of the Participation Agreement and then only in such Specified Person’s capacity as Lessor, Trust Company, Owner Participant or Back-Leveraging Indemnified Person, as applicable. To the extent that the war war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Persons of cancellation, change or lapse in the insurance required hereunder, the Company Lessee hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each the Specified Person Persons immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company Lessee may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(cspecified in subsection (c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) Lessee of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), the Company (or such Permitted Lessee) Lessee shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Stipulated Loss Value during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the Company, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lesseeother Person (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lesseeother Person (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s hull war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, and each Liquidity ProviderProviders or, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, and (F6) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war Company’s war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time are applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 1 contract
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or operated by such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall shall, at all times times, while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided provided, that such Engine is covered by a separate policy of insuranceinsurance and (C) with respect to hull and hull war-risk insurance only, such insurance shall contain a 50/50 Clause per Lloyd’s Aviation Underwriters’ Association Standard Policy Form AVS 103 or a similar 50/50 provisional claims settlement clause. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default existsshall have occurred and be continuing, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons mailing of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) if and to the extent applicable, be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement (Spirit Airlines, Inc.)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee Indenture and Security Agreement (American Airlines 2019-1 Aircraft EETC) [Reg. No.] and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the CompanyCompany or such Permitted Lessee, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of such insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company or, if applicable, such Permitted Lessee has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative DocumentsDocuments or, if applicable, pursuant to the lease to such Permitted Lessee, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft Aircraft, the Airframe or any Engine, or in the case of any requisition for use of the Aircraft Aircraft, the Airframe or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, Indenture and Security Agreement (American Airlines 2019-1 Aircraft EETC) [Reg. No.] against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Samples: Trust Supplement
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject Subject to the rights of the Company Lessee to establish and maintain self-insurance in the manner and with respect to loss or damage to the extent specified in Section 7.06(c)Aircraft as hereinafter provided, the Company Lessee shall maintain, or cause to be maintained, maintain in effect with insurers of recognized responsibility, at no expense to the Loan Trusteeits own expense, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage ground property insurance with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, Aircraft. Lessee shall also maintain war risk and allied perils hull insurance if and to the extent Aircraft is operated on routes where the same is maintained by the Company (or, custom in the case of a lease industry or Lessee's practice is to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is carry war risk and allied perils hull insurance. Such war risk and allied perils hull insurance will be of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and airlines similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such all-risk and war risk and allied perils insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject Lessee may self-insure the risks required to be insured against pursuant to this Indenture be for an amount not less than 110% Section 11 to a reasonable level. The self-insurance with respect to all of the aggregate outstanding principal amount aircraft in the Lessee's fleet may not exceed for any twelve-month-policy year, the lesser of (i) $12,000,000 (or the largest replacement value of any single aircraft on which Lessee carries insurance, if such value is greater than $12,000,000), or (ii) one and one-half (1-1/2%) percent of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by average aggregate insurable value of Lessee's fleet for the Company, provided that such Engine is covered by a separate policy of insurancepreceding year. Any policies carried in accordance with this Section 7.06(b11(b) covering the Aircraft and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up be amended to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (name Lessor as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee loss payee as its interests may appear as Owner and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan TrusteeLessor, (B) subject to the conditions of clause (C) below, provide that, that in respect of the interests interest of the Specified Persons in such policiesLessor, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests as they appearLessor's interest, regardless of any breach or violation by Lessee of any warrantywarranties, declaration declarations or condition conditions contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide thatfor a waiver of subrogation in respect of Lessor, except to the extent not provided by the war risk and allied perils insurance provider, (D) provide that if such insurance is canceled cancelled for any reason whatsoever, or if any substantial change is made in the policy that materially reduces coverage which affects the amount interest of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity ProviderLessor, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Lessor for 30 days (seven days, or such other shorter period as is may from time to time be customarily available obtainable in the industry, in the case of any war risk or and allied perils coverage) after receipt by the Specified Persons Lessor of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, and (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) be primary and without right of contribution from any other insurance that which may be carried by any Specified Person with respect available to its Interests as such in the AircraftLessor. In the case of a lease or contract with the United States of America or any government agency or instrumentality thereof in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any governmentAircraft, a valid agreement by the United States of America or such government agency or instrumentality to indemnify Lessee against the Company, or an insurance policy issued by such government, against any same risks which the Company Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% the Stipulated Loss Value of the aggregate outstanding principal amount of Aircraft from time to time shall be considered adequate insurance with respect to the Equipment Notes during such period that such Airframe is on the ground and not in operation.Aircraft while subject to
Appears in 1 contract
Samples: Lease Agreement (Airlease LTD)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.and
Appears in 1 contract
Samples: Indenture and Security Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to the aircraft operated by corporations engaged the Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insurancethe Company). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall shall: (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation by the Company of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee and each the Liquidity Provider, Provider or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 1 contract
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-self insurance in the manner and to the extent by way of deductibles specified in Section 7.06(c3.6(c), the Company (or, if applicable, the Permitted Lessee) shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Security Trustee, all-any Facility Agent or any Lender, all risk aircraft hull insurance covering the Aircraft and all-all risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk and allied perils insurance insurance, if and to the extent available from the same is maintained by FAA or the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routescommercial markets) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beLessee and operating similar aircraft and engines; provided that (A) such insurance (including self insurance by way of deductibles to the extent permitted self-insuranceby subsection (c) of this Section 3.6) shall at all times times, while the Aircraft is subject to this Indenture Security Agreement, be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and Insured Amount, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the CompanyCompany or such Permitted Lessee and (C) with respect to hull and hull-war risk insurance only, provided that such insurance shall contain a 50/50 Clause per Lloyd’s Aviation Underwriters’ Association Standard Policy Form AVS 103; provided, further that, so long as an Engine is attached to an aircraft other than the Aircraft, (x) such Engine is covered shall be insured in accordance with the terms of this Security Agreement, (y) the insured amount with respect to such aircraft shall be increased, if necessary, by a separate policy the value of insurancethe Engine and (z) such insurance shall name the Secured Parties as additional insureds in such insurance policy. Any policies carried in accordance with this Section 7.06(b3.6(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal the Loan Amount relating to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Aircraft, payable for any loss or damage constituting an Event of a Total Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of a threshold amount to be agreed by the amount set forth on Exhibit C parties up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of a Total Loss with respect to the Aircraft, shall be paid to the Loan Security Trustee as long as this Indenture Security Agreement shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default existsshall have occurred and be continuing, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Security Trustee, except in the case of a loss with respect to an Engine installed on an airframe other than the Airframe, in which case the Company (or any Permitted Lessee) shall endeavor to arrange for any payment of insurance proceeds in respect of such loss to be held for the account of Security Trustee whether such payment is made to the Company (or any Permitted Lessee) or any third party, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Security Trustee, each Facility Agent and each Lender in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or or, if applicable, any Permitted Lessee) Lessee and shall insure the Specified Persons’ Security Trustee’s, each Facility Agent’s and each Lender’s respective Interests as they appear, regardless of any breach or violation of any Aircraft Security Agreement (N●) 24093720v16 Exhibit 10.1 warranty, declaration or condition contained in such policies by the Company (or any or, if applicable, such Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Advance Date to the Loan Trustee and each Liquidity ProviderSecurity Trustee, any Facility Agent or any Lender or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Security Trustee or any Lender for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the Specified Persons Security Trustee, such Facility Agent or such Lenders, respectively, of written notice from such insurers of such cancellation, change or lapse, (D) provide that none of the Specified Persons Security Trustee, any Facility Agent or any Lender shall have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive any rights of (1) set-set off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Security Trustee, any Facility Agent or any Lender to the extent of any moneys due to the Specified Persons Security Trustee, such Facility Agent or such Lender and (2) subrogation against the Specified Persons Security Trustee, any Facility Agent or any Lender to the extent that the Company has waived its rights by its agreement agreements to indemnify the Specified Persons such party pursuant to the Operative Documents, Basic Agreements and (F) be primary without right of contribution from any other insurance that may be carried by the Security Trustee, any Specified Person Facility Agent or any Lender with respect to its Interests interests as such in the Aircraft. In the case of a lease or contract with any government Government in respect of the Aircraft or any Engine, or in the case of any requisition for use or hire of the Aircraft or any Engine by any governmentGovernment, a valid agreement by such government Government to indemnify the Company, or an insurance policy issued by such governmentGovernment, against any risks which that the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b3.6(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. In the case of a loss with respect to an engine (other than an Engine) installed on the Airframe, the Security Trustee shall hold any payment to it of any insurance proceeds in respect of such loss for the account of the Company or any other third party that is entitled to receive such proceeds. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person the Security Trustee, the Facility Agents or the Lenders of cancellation, change or lapse in the insurance as required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Security Trustee, the Facility Agents and the Lenders immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to the aircraft operated by corporations engaged the Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insurancethe Company). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall shall: (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation by the Company of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)policies, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee and each the Liquidity Provider, Provider or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased operated by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operationbeing flown.
Appears in 1 contract
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(csubsection (c), the Company Lessee shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan TrusteeSpecified Persons, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (Lessee or, in the case of a lease sublease to a Permitted LesseeSublessee, such Permitted Lessee) Sublessee, with respect to other aircraft operated by the Company Lessee or such Permitted LesseeSublessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (Ax) such insurance (including the permitted self-insuranceinsurance specified in subsection (c)) shall will at all times while the Aircraft is subject to this Indenture Lease be for an amount not less than 110% of the aggregate outstanding principal amount of Stipulated Loss Value for the Equipment Notes Aircraft from time to time and (By) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by Lessee (it being understood that nothing in the Companyimmediately preceding clause (y) is intended, provided and shall not be construed, to override the requirement set forth in Section 7(b) of having an Engine that is subject to a sublease or other transfer of possession pursuant to such Engine is Section 7(b) covered by a separate policy insurance that complies with the terms of insurancethis subsection (b)). Any policies carried in accordance with this Section 7.06(bsubsection (b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Stipulated Loss Payment Date (the sum of such three amounts being the “Loan Amount”)Value, payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold Amount, up to the amount of the Loan Amount Stipulated Loss Value, for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been dischargedLoss Payee, and that all other amounts shall be payable to the Company, Lessee or its designee unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount Stipulated Loss Value shall be payable to the Loan Trustee, Loss Payee; (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) Lessee and shall insure the Specified Persons’ Interests their respective interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), ; (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered to the Specified Persons on the Closing Delivery Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the any Specified Persons Person for 30 days (seven days, or such other period as is customarily available in the industry, in the case of any war risk or allied perils coverage) after receipt by the such Specified Persons Person of written notice from such insurers of such cancellation, change or lapse, ; (D) provide that the Specified Persons shall not have no any obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, ; (E) provide that the insurers shall waive any rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company that Lessee has waived its rights by its agreement agreements to indemnify the Specified Persons pursuant to hereto or in the other Operative Documents, and ; (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to Person; and (G) contain a 50/50 provisional claims settlement clause of the type contained in AVS 103 (or its Interests as equivalent), if such in the Aircrafta provision is available. In the case of a lease sublease or contract with any the U.S. government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any the U.S. government, a valid agreement by such the U.S. government to indemnify the CompanyLessee, or an insurance policy issued by such the U.S. government, against any risks which the Company that Lessee is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(bsubsection (b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. The insurance provisions set forth above for the benefit of the Specified Persons shall only apply to the extent that Lessee has agreed to indemnify such Specified Person pursuant to the Operative Documents or a Lessee Consent and then only in such Specified Person’s capacity as Lessor, Trust Company, Owner Participant or Back-Leveraging Indemnified Person, as applicable. To the extent that the war war-risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Persons of cancellation, change or lapse in the insurance required hereunder, the Company Lessee hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each the Specified Person Persons immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company Lessee may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(cspecified in subsection (c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) Lessee of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(csubsection (c), the Company (or such Permitted Lessee) Lessee shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes Stipulated Loss Value during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the Company, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (Company, any Permitted Lessee or any Permitted Lesseeother insured (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s hull war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, and each Liquidity ProviderProvider or, or if such insurance is allowed to lapse canceled for nonpayment of premium, such cancellation, cancellation or change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change cancellation or lapsechange, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, and (F6) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the Company’s war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, cancellation or change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, to such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.by
Appears in 1 contract
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (bSection 7.06(c), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c)7.06(d) below, the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitationbut not limited to, war risk risk, hijacking and allied perils insurance insurance, if and to the extent the same is maintained by the Company (or, if a Lease is then in effect, by the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other similar aircraft operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried as from time to time applicable to aircraft operated by corporations engaged Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same or similar business and similarly situated with the Company or such Permitted Lessee, type as the case may beAircraft; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes outstanding from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine is covered need be obtained only to the extent available at reasonable cost (as reasonably determined by a separate policy of insuranceCompany). Any policies carried in accordance with this Section 7.06(b7.06(c) and any policies taken out in substitution or replacement for any such policies shall shall: (A1) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C Insurance Threshold up to the an amount of equal to the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this Indenture shall has not have been discharged, and that all other amounts shall be payable paid to the CompanyCompany or its designee, unless the insurer shall have has received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the an amount of equal to the Loan Amount shall be payable to the Loan Trustee, (B2) subject to the conditions of clause (C) belowbelow (other than the exception set forth therein), provide that, in respect of the interests interest of the Specified Persons each Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or Company, any Permitted Lessee, or any other insured (other than such Additional Insured) and shall insure the Specified Persons’ each Additional Insured’s Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (Company, any Permitted Lessee or any Permitted Lesseeother insured (other than such Additional Insured), (C3) provide that, except to the extent not provided for by the Company’s hull war risk risk, hijacking, and allied perils insurance provider, if such insurance is canceled for any reason whatsoeverreason, or if any change is made in the policy insurance that materially reduces the amount of insurance or coverage (not including the coverage amount) certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, and each Liquidity Provider, or if such insurance is allowed to lapse canceled for nonpayment of premium, such cancellation, cancellation or change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available then customary in the industry, in the case of war risk risk, hijacking, or allied perils coverage) after receipt by issuance to the Specified Persons Additional Insureds of written notice from or on behalf of such insurers of such cancellation, change cancellation or lapsechange, (D4) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E5) provide that the insurers shall waive rights of (1x) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2y) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, and (F6) if applicable, be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured and (7) include a 50/50 provisional claims settlement clause in the event that separate policies are maintained with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engineall-risk aircraft hull insurance and war risk, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (hijacking and in the amounts) that are the subject of such indemnification or allied perils hull insurance. To the extent that the Company’s war risk risk, hijacking, and allied perils insurance provider does not provide for provision of direct notice to each Specified Person Additional Insureds of cancellation, cancellation or change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person the Additional Insureds immediate notice of each cancellation or lapse of, or material change to, to such insurance.
(ii) During any period that the Airframe or an Engine Engine, as the case may be, is on the ground and not in operationbeing flown, the Company may carry or cause to be carried as to such non-operating flown Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time are applicable to airframes or and engines owned or leased by the Company (or, if a lease Lease is then in effect, by the Permitted Lessee) of the same type as such non-operating flown Airframe or Engine and that are on the ground and not in operationbeing flown; provided that, subject to self-insurance to the extent permitted by Section 7.06(c)7.06(d) below, the Company (or such Permitted Lessee) shall maintain or cause to be maintained insurance against risk of loss or damage to such non-operating flown Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during for the Aircraft or, with respect to a non-flown Engine, the replacement value of such period that such Airframe is on the ground and not in operationEngine.
Appears in 1 contract
Samples: Indenture and Security Agreement (Delta Air Lines Inc /De/)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a Permitted Lessee, such Permitted Lessee) with respect to other aircraft operated by 76 Indenture and Security Agreement (American Airlines 2021-1 EETC) [Reg. No.] the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may be; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance. Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the Aircraft, shall be paid to the Loan Trustee as long as this Indenture shall not have been discharged, and that all other amounts shall be payable to the CompanyCompany or such Permitted Lessee, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of such insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each Liquidity Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of 77 Indenture and Security Agreement (American Airlines 2021-1 EETC) [Reg. No.] war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company or, if applicable, such Permitted Lessee has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative DocumentsDocuments or, if applicable, pursuant to the lease to such Permitted Lessee, and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft Aircraft, the Airframe or any Engine, or in the case of any requisition for use of the Aircraft Aircraft, the Airframe or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe is on the ground and not in operation.
Appears in 1 contract
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk ground and flight aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a or any Permitted Lessee, such Permitted Lessee) Lessee with respect to other similar aircraft owned or operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beCompany; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company, provided that such Engine is covered by a separate policy of insurance). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) name the Loan Trustee as exclusive loss payee for any proceeds paid under such policy, (B) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “Loan Amount”), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines) and (III) if an "Event of Default" shall have occurred and be continuing hereunder or under any Related Indenture, all insurance proceeds payable for any loss or damage not constituting an Event of Loss, in the case of clauses (I), (II) and (III), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (BC) subject to the conditions of clause (CD) below, provide that, in respect of the interests of the Specified Persons in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ ' Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee), (CD) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee Trustee, the Class G Liquidity Provider and each Liquidity the Policy Provider, or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons of written notice from such insurers of such cancellation, change or lapse, (DE) provide that the Specified Persons shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (EF) provide that the insurers shall waive rights of (1) set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons to the extent of any moneys due to the Specified Persons and (2) subrogation against the Specified Persons to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons pursuant to the Operative Documents, and (FG) be primary without right of contribution from any other insurance that may be carried by any Specified Person with respect to its Interests as such in the AircraftAircraft and (H) contain a "50/50 Provisional Claims Settlement Clause" (or its equivalent). In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-non- operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operation.
Appears in 1 contract
Samples: Indenture and Security Agreement (American Airlines Inc)
Insurance Against Loss or Damage to Aircraft. (i) Except as provided in clause (ii) of this subsection (b), and subject to the rights of the Company to establish and maintain self-insurance in the manner and to the extent specified in Section 7.06(c), the Company shall maintain, or cause to be maintained, in effect with insurers of recognized responsibility, at no expense to the Loan Trustee, all-risk aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any Engines or Parts while removed from the Aircraft (including, without limitation, war risk and allied perils insurance if and to the extent the same is maintained by the Company (or, in the case of a lease to a or any Permitted Lessee, such Permitted Lessee) Lessee with respect to other aircraft owned or operated by the Company or such Permitted Lessee, as the case may be, on the same or similar routes) that is of the type and in substantially the amount usually carried by corporations engaged in the same or similar business and similarly situated with the Company or such Permitted Lessee, as the case may beCompany; provided that (A) such insurance (including the permitted self-insurance) shall at all times while the Aircraft is subject to this Indenture be for an amount not less than 110% of the aggregate outstanding principal amount of the Equipment Notes from time to time and time, (B) such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Company and (C) such insurance covering Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an Engine need be obtained only to the extent available at reasonable cost (as reasonably determined by the Company, provided that such Engine is covered by a separate policy of insurance). Any policies carried in accordance with this Section 7.06(b) and any policies taken out in substitution or replacement for any such policies shall (A) provide that (I) any insurance proceeds up to an amount equal to the outstanding principal amount of the Equipment Notes, together with accrued but unpaid interest thereon, plus an amount equal to the interest that would accrue on the outstanding principal amount of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance proceeds to the Loan Trustee (as provided for in this sentence) during the period commencing on the day following the date of such payment to the Loan Trustee and ending on the Loss Payment Date (the sum of such three amounts being the “"Loan Amount”"), payable for any loss or damage constituting an Event of Loss with respect to the Aircraft, Aircraft and (II) any insurance proceeds in excess of the amount set forth on Exhibit C up to the amount of the Loan Amount for any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with respect to the AircraftAircraft (or Engines), shall be paid to the Loan Trustee as long as this the Indenture shall not have been discharged, and that all other amounts shall be payable to the Company, unless the insurer shall have received notice that an Event of Default exists, in which case all insurance proceeds for any loss or damage to the Aircraft (or Engines) up to the amount of the Loan Amount shall be payable to the Loan Trustee, (B) subject to the conditions of clause (C) 57 below, provide that, in respect of the interests of the Specified Persons Additional Insureds in such policies, the insurance shall not be invalidated by any action or inaction of the Company (or any Permitted Lessee) and shall insure the Specified Persons’ Additional Insureds' Interests as they appear, regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Company (or any Permitted Lessee)Company, (C) provide that, except to the extent not provided by the war risk and allied perils insurance provider, that if such insurance is canceled for any reason whatsoever, or if any change is made in the policy that materially reduces the amount of insurance or the coverage certified in the insurance report delivered on the Closing Date to the Loan Trustee and each the Liquidity Provider, Provider or if such insurance is allowed to lapse for nonpayment of premium, such cancellation, change or lapse shall not be effective as to the Specified Persons Additional Insureds for 30 days (seven days, or such other period as is customarily available in the industry, in the case of war risk or allied perils coverage) after receipt by the Specified Persons Additional Insureds of written notice from such insurers of such cancellation, change or lapse, (D) provide that the Specified Persons Additional Insureds shall have no obligation or liability for premiums, commissions, assessments or calls in connection with such insurance, (E) provide that the insurers shall waive rights of (1) set-offsetoff, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Specified Persons Additional Insureds to the extent of any moneys due to the Specified Persons Additional Insureds and (2) subrogation against the Specified Persons Additional Insureds to the extent the Company has waived its rights by its agreement to indemnify the Specified Persons Additional Insureds pursuant to the Operative Documents, Documents and (F) be primary without right of contribution from any other insurance that may be carried by any Specified Person Additional Insured with respect to its Interests as such in the Aircraft. In the case of a lease or contract with any government in respect of the Aircraft or any Engine, or in the case of any requisition for use of the Aircraft or any Engine by any government, a valid agreement by such government to indemnify the Company, or an insurance policy issued by such government, against any risks which the Company is required hereunder to insure against shall be considered adequate insurance for purposes of this Section 7.06(b) to the extent of the risks (and in the amounts) that are the subject of such indemnification or insurance. To the extent that the war risk and allied perils insurance provider does not provide for provision of direct notice to each Specified Person of cancellation, change or lapse in the insurance required hereunder, the Company hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give each Specified Person immediate notice of each cancellation or lapse of, or material change to, such insurance.
(ii) During any period that the Airframe or an Engine is on the ground and not in operation, the Company may carry or cause to be carried as to such non-operating Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to self-insurance to the extent permitted by Section Subsection 7.06(c), insurance otherwise conforming with the provisions of said clause (i) except that the scope of the risks covered and the type of insurance shall be the same as from time to time applicable to airframes or and engines owned or leased by the Company (or, if a lease is then in effect, by the Permitted Lessee) of the same type as such non-operating Airframe or Engine and that are on the ground and not in operation; provided that, subject to self-insurance to the extent permitted by Section Subsection 7.06(c), the Company (or such Permitted Lessee) shall maintain insurance against risk of loss or damage to such non-operating Airframe or Engine in an amount at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes during such period that such Airframe or Engine is on the ground and not in operation.
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Samples: Indenture and Security Agreement (American Airlines Inc)
