Common use of Operation and Use Clause in Contracts

Operation and Use. Lessee agrees not to (i) operate the Airframe or any Engine or Propeller or permit the Airframe or any Engine or Propeller to be operated except in a passenger configuration, in commercial or other operations for which Lessee is duly authorized by the FAA or other governmental authority having jurisdiction over Lessee or such Airframe, Engine or Propeller; (ii) use or permit the Aircraft to be used for a purpose for which the Aircraft is not designed or reasonably suitable; (iii) base the Aircraft outside the United States or operate, use or locate any Airframe, Engine or Propeller, or suffer such Airframe, Engine or Propeller to be operated, used or located (A) in any area excluded from coverage by any insurance required by the terms of Section 10 hereof or (B) outside the contiguous 48 United States or Canada, or the Bahamas, or (C) in any recognized, or in Lessor's reasonable judgment, threatened area of hostilities unless fully covered by war risk insurance. Lessee will not permit the Aircraft or any Engine or Propeller to be maintained, used or operated during the Term in violation of any Applicable Law, or for matters not covered by Applicable Law, contrary to any manufacturer's operating manuals or instructions. Lessee agrees not to operate the Aircraft, or suffer the Aircraft to be operated or kept in any place (i) unless the Aircraft is covered by insurance as required by the provisions of Section 10 hereof, or (ii) contrary to or inconsistent with the terms of such insurance and will not do or permit to be done or left undone anything whereby any policy required hereunder would or might reasonably be expected to be rendered in whole or in part invalid or unenforceable. Lessor will favorably respond to requests as may be made by Lessee from time to time for permission to utilize the Aircraft in countries located in the Caribbean region in addition to the Bahamas, provided that the Aircraft will remain registered and based in the United States, that the proposed countries of use are identified reasonably in advance to Lessor based on a specific proposal for utilization of the Aircraft, that Lessee obtains additional insurance coverage as may be appropriate in light of the proposed foreign use which is consistent with the obligations of Lessor under the Financier Documents, and that Lessor can reasonably satisfy itself that said use will not result in any breach of the Financier Documents or undue physical, political, or legal risk to the Aircraft, to title thereto, or to any interest therein. Lessor reserves the right to withdraw its consent to foreign use as a result of material changes in circumstances involving any country for which permission was previously granted, provided that Lessor will use its best efforts to provide thirty (30) days prior written notice to Lessee prior to its withdrawal of such consent.

Appears in 3 contracts

Samples: Lease Agreement (Atlantic Coast Airlines Inc), Lease Agreement (Atlantic Coast Airlines Inc), Lease Agreement (Atlantic Coast Airlines Inc)

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Operation and Use. The Lessee agrees shall not to (i) operate the Airframe or any Engine or Propeller or permit the Airframe or any Engine or Propeller to be operated except in a passenger configuration, in commercial or other operations for which Lessee is duly authorized by the FAA or other governmental authority having jurisdiction over Lessee or such Airframe, Engine or Propeller; (ii) use or permit the Aircraft to be used for a purpose for which the Aircraft is not designed or reasonably suitable; (iii) base the Aircraft outside the United States or operate, use or locate the Airframe or any Airframe, Engine or PropellerEngine, or suffer such Airframe, Airframe or any Engine or Propeller to be operated, used or located (Ai) in any area excluded from coverage by any insurance required by the terms of Section 10 9 hereof, except in the case of a requisition by the United States of America where the Lessee obtains (and provides evidence of) indemnity from the Government for the benefit of the Additional Insureds against substantially the same risks and for at least the amounts of the insurance required by Section 9 hereof covering such area, or (Bii) outside the contiguous 48 United States or Canada, or the Bahamas, or (C) Canada in any recognizedrecognized or, or in Lessorthe Lessee's reasonable judgment, threatened area of hostilities unless fully covered by war risk insurance, or in either case (x) unless the Airframe or such Engine is operated or used under contract with the Government under which contract the Government assumes liability for substantially the same risks in at least the same amounts as would be covered by such insurance, or (y) except to the extent attributable primarily to causes beyond the reasonable control of the Lessee or any Permitted Sublessee or primarily to circumstances involving an isolated occurrence or series of events not in the ordinary course of the regular operations of the Lessee or any Permitted Sublessee, and the Lessee or Permitted Sublessee is diligently trying to rectify the situation. The Lessee will shall not permit the Aircraft Airframe or any Engine or Propeller to be maintained, used or operated during the Term in violation of any Applicable LawLaw or in violation of any airworthiness certificate, license or for matters not covered by Applicable Law, contrary registration relating to any manufacturer's operating manuals or instructions. Lessee agrees not to operate the Aircraft, or suffer the Aircraft to be operated or kept in such Engines issued by any place competent governmental authority, unless (i) unless the validity thereof is being contested in good faith and by appropriate proceedings which do not involve a non-de minimis danger of the sale, forfeiture or loss of the Airframe or such Engine or the interest of Lessor therein, any risk of criminal liability or any material risk of civil liability against Lessor, (ii) it is not possible for the Lessee (or a Permitted Sublessee) to comply with the laws of a jurisdiction other than the United States (or other than any jurisdiction in which the Aircraft is covered by insurance as required by then registered) because of a conflict with the provisions applicable laws of Section 10 hereofthe United States (or such jurisdiction in which the Aircraft is then registered), or (iiiii) contrary it is for minor, unanticipated, or non- recurring violations that the Lessee is diligently trying to or inconsistent with the terms of such insurance and will rectify which do not do or permit to be done or left undone anything whereby any policy required hereunder would or might reasonably be expected to be rendered in whole or in part invalid or unenforceable. Lessor will favorably respond to requests as may be made by Lessee from time to time for permission to utilize render the Aircraft in countries located in the Caribbean region in addition to the Bahamas, provided that the Aircraft will remain registered and based in the United States, that the proposed countries of use are identified reasonably in advance to Lessor based on a specific proposal for utilization of the Aircraft, that Lessee obtains additional insurance coverage as may be appropriate in light of the proposed foreign use which is consistent with the obligations of Lessor under the Financier Documents, and that Lessor can reasonably satisfy itself that said use will not result in any breach of the Financier Documents or undue physical, political, or legal risk to the Aircraft, to title thereto, or liable to any interest therein. Lessor reserves the right to withdraw its consent to foreign use as a result risk of material changes in circumstances involving condemnation, destruction, seizure or confiscation by any country for which permission was previously granted, provided that Lessor will use its best efforts to provide thirty (30) days prior written notice to Lessee prior to its withdrawal of such consent.authority

Appears in 1 contract

Samples: Lease Agreement (Midway Airlines Corp)

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