Common use of Loss and total damage Clause in Contracts

Loss and total damage. If the Lessor determines that any Equipment is returned damaged beyond economical repair, or if an item of Equipment is lost, abandoned by the Lessee, arrested or seized by legal process of the Lessee’s creditor(s) or others, or not returned to the Lessor for any other reason beyond Lessor’s responsibility and control or the responsibility and control of Lessor’s agents, employees, or subcontractors, the Lessee shall be responsible to pay to Lessor the replacement value for such item of Equipment as specified in the Lease Order. Lease charges for the Equipment shall continue to accrue until the replacement cost is paid. If Equipment is lost, and after the Lessor receives payment for the lost Equipment, the Lessor may, at its option, supply Lessee substitute Equipment for the balance of the lease term pursuant to the same terms and conditions covering the lost item(s).