Leased Aircraft / Engines. In lieu of the requirements of (i) and (ii) above, should any Aircraft or Engine owned or managed by any Borrower at any time be subject to an Aircraft Lease, Borrowers shall cause the lessee of such Aircraft or Engine to maintain throughout the term of such Aircraft Lease, the insurances described in (i) and (ii) above and, in each case, in conformity with the requirements set forth in (iv) below and with the requirements of any relevant Aircraft Mortgage in respect of such Aircraft or Engine.
Leased Aircraft / Engines. Leased Aircraft Engines will be eligible for advances under separate term notes, which will be withdrawn from the Borrowing Base amount subject to review and assignment of perspective leases. Said determination shall be at the sole discretion of the Bank. These notes will be advanced at the lesser of 80 percent of the aircraft engine's cost or appraised value. Amortization of term notes will be related to the remaining life of the lease, but not to exceed forty-eight (48) months. Borrower will agree to furnish quarterly depreciation reports on each aircraft engine under lease, and a note's balance may not exceed 80 percent of an engine's depreciated value. Caps on Borrowing Base Components. Availability under the Borrowing Base shall be capped at $5,000,000.00 for parts inventory, $5,000,000.00 for leased aircraft engines, of which no more than $2,500,000.00 may be leased to foreign lessees, and $2,000,000.00 for Foreign Receivables. There will be no cap within the Working Capital Loan on domestic receivables nor on aircraft engines which have been overhauled and held for resale. Total advances under the Working Capital Loan cannot exceed 100 percent of the book value of the Company's core assets (accounts receivable plus inventory).
