Common use of Replacement of Components Clause in Contracts

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDED, HOWEVER, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than Permitted Encumbrances) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160.

Appears in 3 contracts

Samples: Facility Lease Agreement (Eme Homer City Generation Lp), Facility Lease Agreement (Eme Homer City Generation Lp), Facility Lease Agreement (Eme Homer City Generation Lp)

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Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility LesseeLessee or the Operator, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, Lease (each such replacement Component being herein referred to as a "Replacement Component") and (b) cause such replacement to be performed in a --------------------- manner that which does not (i) diminish the current value, or residual value, utility or remaining economic useful life or utility of the Facility by more than a de minimis amount (as measured below the current or residual value, the remaining useful life or the utility thereof immediately prior to such replacement, replacement assuming the Facility is, at such time, was then in the condition required to be maintained by the terms of this Facility LeaseLease or (ii) or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 (each such replacement 2 C.B. 647. If any Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component Facility that is subject to this Facility Lease is at any time removed from the Facility Facility, such Component shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Periodic Lease Rent or Renewal Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (ix) the replaced Component shall no longer be subject to this Facility Lease, (iiy) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iiiz) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (ai) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease Indenture, and (bii) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such partComponent without replacing it; provided, that no such Component may be so removed without being replaced if such removal would diminish the current or portion residual value, remaining useful life or utility of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, removal assuming the Facility is, at such time, was then in the condition required to be maintained by the terms of this Facility Lease) Lease or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 2 contracts

Samples: Facility Lease Agreement (Dynegy Danskammer LLC), Participation Agreement (Dynegy Danskammer LLC)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility Project or any Component, Component the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility Project any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens described in clauses (a)-(c), (e) (solely for amounts not yet delinquent), (f), (g) or (j) of the definition thereof) and which shall be in at least as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, Project Lease (each such replacement Component being herein referred to as a "Replacement Component") and (b) cause such replacement to be performed in a manner that which does not diminish the current value, residual value, utility or remaining economic useful life of the Facility (i) decrease by more than a de minimis amount (as measured the current or residual value, remaining useful life or utility of the Project below the current or residual value, the remaining useful life or the utility thereof immediately prior to such replacement, replacement (assuming the Facility is, at Project and such time, Component thereof was then in the condition required to be maintained by the terms of this Facility Project Lease), (ii) or cause the Facility Project to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1 C.B. 1156 or Rev. Proc(iii) cause the Lessee or the Owner Lessor to be in default under any applicable term or provision of any Operative Document. 2001-29, 2001-19 IRB 1160 (each such replacement If any Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component Project that is subject to this Project Lease is at any time removed from the Facility Project, such Component shall remain subject to this Facility Project Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility Project and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the FacilityProject, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Head Lease Rent, Renewal Rent, Proportional Periodic Lease Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest Proportional Rent or Termination ValuesRenewal Lease Rent), (ix) the replaced Component shall no longer be subject to this Facility Project Lease, (iiy) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed such replaced Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iiiz) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to the Head Lease and this Facility Project Lease and, so long as the Lessor Notes are outstandingLien of the Indenture shall not have been terminated and fully discharged, the Lien of the Lease Indenture, and (bii) be deemed a part of the Facility and the Undivided Interest Project for all purposes of this Facility Project Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Project Lease to the contrary, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; provided, that no such Component may be so removed without being replaced if such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest decrease by more than a de minimis amount the current or residual value, remaining useful life or utility of the Project below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, removal (assuming the Facility is, at such time, Project was then in the condition required to be maintained by the terms of this Facility Project Lease) or cause the Facility Project to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 11601 C.B. 1156.

Appears in 2 contracts

Samples: Project Lease Agreement (Ormat Technologies, Inc.), Project Lease Agreement (Ormat Technologies, Inc.)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Lease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"“Replacement Component”). An undivided interest equal If any Component that is subject to the Owner Lessor's Percentage in each Component this Facility Lease is at any time removed from the Facility Facility, such Component shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which that has been incorporated in the Facility and which that meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest Rent or Termination ValuesValue), (ia) the replaced removed Component shall no longer be subject to the Head Lease, this Facility LeaseLease or the Lien of the Lease Indenture, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as and shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, Trustee and (iiib) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall automatically (ai) become subject to the Head Lease, this Facility Lease and, so long as the Lessor Notes are outstandingLien of the Lease Indenture shall not have been terminated or discharged, the Lien of the Lease Indenture, Indenture and (bii) be deemed a part of the Facility and the Undivided Interest for all purposes of the Head Lease and this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component is surplus or portion obsolete and not necessary for the operation of the Facility is surplus or obsoletein accordance with this Facility Lease, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current valueComponent, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to and upon such removal, assuming the Facility isremoved Component shall no longer be subject to the Head Lease, at such time, in the condition required by the terms of this Facility Lease) Lease or cause the Facility to become "limited use property" within Lien of the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160Lease Indenture.

Appears in 2 contracts

Samples: Facility Lease Purchase Agreement (Tennessee Valley Authority), Facility Lease Purchase Agreement (Tennessee Valley Authority)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own no cost and expenseto the Owner Lessor, may remove or cause or permit to be removed from the Facility any Component; PROVIDED, HOWEVER, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish diminish, other than in an immaterial respect, the current value, and residual value, utility or remaining economic useful life or utility of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) , or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 2001-19 IRB 1160 1976- 2 C.B. 647 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Price or Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture TrusteeHolder Representative, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease IndentureSecurity Documents, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as if such removal would not not, other than in an immaterial respect, diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the utility or the remaining economic useful life or of the utility thereof (Facility, as measured immediately prior to such removalreplacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) Lease or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Edison Mission Energy)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own cost and expense, may remove or cause cause, or permit permit, to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than Permitted Encumbrances) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160.

Appears in 1 contract

Samples: Facility Lease Agreement (Eme Homer City Generation Lp)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility or the Ancillary Facilities any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (ax) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (by) cause such replacement to be performed in a manner that does not diminish the current value, or residual value, utility or remaining economic useful life of the Facility or the Ancillary Facilities by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility isand the Ancillary Facilities are, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" use” property within the meaning of Rev. Proc. 2001-28, 2001-19 IRB I.R.B. 1156 or Rev. Proc. 2001-29, 2001-19 IRB I.R.B. 1160 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"“Replacement Component”). An undivided interest equal to the Owner Lessor's ’s Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the FacilityFacility or the Ancillary Facilities, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest Price or Termination ValuesRent Factors), (ia) the replaced Component shall no longer be subject to this Facility LeaseLease or the Lien of the Indenture, (iib) title to the Owner Lessor's ’s undivided interest equal to the Owner Lessor's ’s Percentage in the removed Component (or, in the case of a Component of the Ancillary Facilities, the Lessor’s leasehold interest in such Component) shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iiic) title to an undivided interest equal to the Owner Lessor's ’s Percentage in the Replacement Component (or, in the case of a Replacement Component in respect of the Ancillary Facilities, an applicable undivided leasehold interest in such Replacement Component) shall thereupon vest with the Owner Lessor and such undivided interest shall (ai) become subject to this Facility Lease and, so long as the Lessor Notes are outstandingLien of the Indenture shall not have been terminated or discharged, the Lien of the Lease Indenture, and (bii) be deemed a part of the Facility and the Undivided Interest or the Ancillary Facilities and the Ancillary Facilities Interest, as the case may be, for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; provided, that no such Component may be so removed without being replaced if such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility isand the Ancillary Facilities are, at such time, in the condition required by the terms of this Facility Lease) the current or residual value, the utility or the remaining economic useful life of the Facility as a whole or cause the Facility to become "limited use property" use” property within the meaning of Rev. Proc. 2001-28, 2001-19 IRB I.R.B. 1156 or Rev. Proc. 2001-29, 2001-19 IRB I.R.B. 1160.

Appears in 1 contract

Samples: Facility Lease Agreement (Firstenergy Corp)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own no cost and expenseto the Owner Lessor, may remove or cause cause, or permit permit, to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 2 C.B. 647 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component"). An undivided interest equal to the Owner Lessor's ---------------------- Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Periodic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 to the contrary, if the Facility ----------- Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Mirant Mid Atlantic LLC)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility LesseeOld Dominion, at its own cost and expense, may remove or cause or permit to be removed from the Facility Clover Unit 2 any Component; PROVIDED, HOWEVER, that the Facility Lessee Old Dominion shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as as, and shall have a current and residual value, remaining economic useful life and utility at least equal to to, that of the Component replaced, assuming such replaced Component was in at least the condition and repair required to be maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Operating Equipment Agreement (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component")) as promptly as practicable. If any part of Clover Unit 2 shall be removed and such removal shall cause material damage to Clover Unit 2, Old Dominion, xx xxx xxx xxxx xxx xxxxnse, shall promptly repair or cause the repair of such damage. An undivided interest equal to the Owner LessorFacility Owner's Percentage in each Component at any time removed from the Facility Unit 2 Equipment or the Common Facilities Equipment shall remain subject to the Head Equipment Agreement and this Facility LeaseOperating Equipment Agreement, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility Clover Unit 2 and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the FacilityUnit 2 Equipment or the Common Facilities Equipment, without further act (and at no cost to the Facility Owner Lessor and with no adjustment to the Purchase Price, Head Equipment Agreement Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination ValuesConsideration), (i) the replaced Component shall no longer be subject to the Head Equipment Agreement or this Facility LeaseOperating Equipment Agreement, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner LessorFacility Owner's Percentage in the Replacement Component shall thereupon vest with become subject to the Owner Lessor Head Equipment Agreement, and such (iii) an undivided interest equal to the Facility Owner's Percentage in such Replacement Component shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, Operating Equipment Agreement and (b) be deemed a part of the Facility and the Undivided Interest Clover Unit 2 for all purposes of this Facility Leasehereof. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Operating Equipment Agreement to the contrary, if Old Dominion or the Facility Lessee Clover Unit 2 Operator has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; PROVIDED that no such Component may be so removed without being replaced if such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160Clover Unit 2.

Appears in 1 contract

Samples: Operating Equipment Agreement (Old Dominion Electric Cooperative)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility LesseeLessee or the Operator, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall exercise all rights, powers, elections and options available to it under the Project Agreements to (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, Lease (each such replacement Component being herein referred to as a "Replacement Component") and (b) cause such replacement to be performed in a manner that which does not diminish the current value, or residual value, utility or remaining economic useful life or utility of the Facility by more than a de minimis amount (as measured below the current or residual value, the remaining useful life or the utility thereof immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) replacement or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 (each such replacement 2 C.B. 647. If any Component being herein referred to as a "REPLACEMENT COMPONENT"). An the Facility an undivided interest equal in which is subject to the Owner Lessor's Percentage in each Component this Facility Lease, is at any time removed from the Facility Facility, such undivided interest in the Component shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Periodic Lease Rent or Renewal Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the undivided interest in the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component (to the extent part of the Undivided Interest) shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's applicable Unit Percentage (for Components of such Unit) or Common Facilities Percentage (for Components of the Related Common Facilities) in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (ax) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease Indenture, and (by) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such partComponent without replacing it; provided, that no such Component may be so removed without being replaced if such removal would diminish the current or portion residual value, remaining useful life or utility of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) removal or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (PPL Montana LLC)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility LesseeLessee or the Operator, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall exercise all rights, powers, elections and options available to it or any of its Affiliates under the Owners Agreement to (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with this Facility Lease, and assuming the Facility shall then be in the condition required to have been maintained by the terms of this Facility Lease, Lease (each such replacement Component being herein referred to as a "Replacement Component") and (b) cause such replacement to be performed in a manner that which does not diminish the current value, or residual value, utility or remaining economic useful life or utility of the Facility by more than a de minimis amount (as measured below the then current or residual value, the remaining useful life or the utility thereof immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) replacement or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 (each such replacement Component being herein referred 2 C.B. 647; provided, further, that the Facility Lessee's obligations hereunder shall be limited to as a "REPLACEMENT COMPONENT")its exercise of all rights, powers, elections and options available to it or any of its Affiliates under the Owners Agreement. An undivided interest equal to the Owner Lessor's Percentage in each Component of the Facility which is subject to this Facility Lease, at any time removed from the Facility Facility, shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Price or Periodic Lease Rent, Renewal Rent, Proportional Rent, Rent or Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component (to the extent part of the Facility Interest) shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (ax) become subject to this Facility Lease and, so long as the Lessor Notes are outstandingLien of the Lease Indenture shall not have been terminated or discharged, the Lien of the Lease Indenture, and (by) be deemed a part of the Facility and the Undivided Facility Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, but subject to the Owners Agreement, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; provided, that no such Component may be so removed without being replaced if such removal would not diminish the current value, or residual value, utility or remaining economic useful life or utility of the Facility or the Undivided Facility Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, Interest shall then be in the condition required to have been maintained by the terms of this Facility Lease) Lease or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Reliant Energy Mid Atlantic Power Services Inc)

Replacement of Components. In the ordinary course of maintenancemainte xxxxx, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own no cost and expenseto the Owner Lessor, may remove or cause or permit to be removed from the Facility any Component; PROVIDED, HOWEVER, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Lease Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish diminish, other than in an immaterial respect, the current value, and residual value, utility or remaining economic remain ing useful life or utility of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) , or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 2 C.B. 647 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Price or Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding Notwithstand ing anything in this SECTION Section 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as if such removal would not not, other than in an immaterial respect, diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the utility or the remaining economic useful life or of the utility thereof (Facility, as measured immediately prior to such removalreplacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) Lease or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Edison Mission Energy)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as as, and shall have a current and residual value, remaining economic useful life and utility at least equal to to, that of the Component replaced, assuming such replaced Component was in at least the condition and repair required to be maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Lease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component")) as promptly as practicable. An undivided interest equal to the Owner Facility Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to the Head Lease and this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Facility Lessor and with no adjustment to the Purchase Price, Undivided Interest Cost or Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to the Head Lease or this Facility Lease, (ii) title to such Replacement Component shall vest in the Owner LessorCo-Owners and Oglethorpe's undivided interest equal therein shall become subject to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility LesseeOglethorpe Mortgage, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Facility Lessor's Percentage in the Replacement Component shall thereupon vest with become subject to the Owner Lessor Head Lease, and such (iv) an undivided interest equal to the Facility Lessor's Percentage in such Replacement Component shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Leasehereof. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee or the Facility Operator has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; provided that no such Component may be so removed without being replaced if such removal would not diminish the current value, or residual value, utility or remaining economic useful life of the Facility or the Undivided Interest value by more than a de minimis amount below the then current or residual value, diminish the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming of the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200176-2830, 20011976-19 IRB 1156 or Rev. Proc. 2001-291, 2001-19 IRB 1160647.

Appears in 1 contract

Samples: Facility Lease Agreement (Oglethorpe Power Corp)

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Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (except Liens on TVA’s Percentage Interest therein and other than Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Lease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"“Replacement Component”). An undivided interest equal If any Component that is subject to the Owner Lessor's Percentage in each Component Head Lease and this Facility Lease is at any time removed from the Facility Facility, such Component shall remain subject to the Head Lease and this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which that has been incorporated in the Facility and which that meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest Rent or Termination ValuesValue), (ia) the replaced removed Component shall no longer be subject to the Head Lease, this Facility LeaseLease or the Lien of the Lease Indenture, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as and shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iiib) title to an undivided interest equal to the Owner Lessor's ’s Percentage Interest in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall automatically (ai) become subject to the Head Lease, this Facility Lease and, so long as the Lessor Notes are outstandingLien of the Lease Indenture shall not have been terminated or discharged, the Lien of the Lease Indenture, Indenture and (bii) be deemed a part of the Facility and the Undivided Interest for all purposes of the Head Lease and this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component is surplus or portion obsolete and not necessary for the operation of the Facility is surplus or obsoletein accordance with this Facility Lease, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current valueComponent, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to and upon such removal, assuming the Facility isremoved Component shall no longer be subject to the Head Lease, at such time, in the condition required by the terms of this Facility Lease) Lease or cause the Facility to become "limited use property" within Lien of the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160Lease Indenture.

Appears in 1 contract

Samples: Facility Lease Purchase Agreement (Tennessee Valley Authority)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than Permitted Encumbrances) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160.

Appears in 1 contract

Samples: Facility Lease Agreement (Eme Homer City Generation Lp)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own no cost and expenseto the Owner Lessor, may remove or cause cause, or permit permit, to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 2 C.B. 647 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component"). An undivided interest equal to the Owner Lessor's --------------------- Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component XXXXXXXXX FACILITY LEASE (L1) ----------------------------- which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Periodic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 to the contrary, if the Facility ----------- Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertylimited-use" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Mirant Mid Atlantic LLC)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility Lessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component 9 to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Lease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"“Replacement Component”). An undivided interest equal If any Component that is subject to the Owner Lessor's Percentage in each Component this Facility Lease is at any time removed from the Facility Facility, such Component shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which that has been incorporated in the Facility and which that meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest Rent or Termination ValuesValue), (ia) the replaced removed Component shall no longer be subject to the Head Lease, this Facility LeaseLease or the Lien of the Lease Indenture, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as and shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, Trustee and (iiib) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall automatically (ai) become subject to the Head Lease, this Facility Lease and, so long as the Lessor Notes are outstandingLien of the Lease Indenture shall not have been terminated or discharged, the Lien of the Lease Indenture, Indenture and (bii) be deemed a part of the Facility and the Undivided Interest for all purposes of the Head Lease and this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component is surplus or portion obsolete and not necessary for the operation of the Facility is surplus or obsoletein accordance with this Facility Lease, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current valueComponent, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to and upon such removal, assuming the Facility isremoved Component shall no longer be subject to the Head Lease, at such time, in the condition required by the terms of this Facility Lease) Lease or cause the Facility to become "limited use property" within Lien of the meaning of Rev. ProcLease Indenture. 2001-28, 2001-19 IRB 1156 or Rev. ProcSECTIOIN 8. 2001-29, 2001-19 IRB 1160.MODIFICATIONS Section

Appears in 1 contract

Samples: Facility Lease Purchase Agreement

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own cost and expense, may remove shall promptly replace or cause or permit to be removed from the Facility any Component; PROVIDED, HOWEVER, that the Facility Lessee shall (a) cause any such Component to be replaced all parts of the Improvements that may from time to time become worn out, lost, stolen, destroyed, damaged beyond repair or permanently rendered unfit for use for any reason whatsoever, provided that Lessee shall not be obligated to replace any such part if (x) such part has become obsolete or unnecessary and its replacement is otherwise not necessary or customary (based on buildings of comparable age and general design in the Suffolk County, Long Island office market) for the proper functioning of the Improvements or (y) the failure to replace such part will not adversely, other than in an immaterial manner, affect the value of the Property as soon a whole. In addition, Lessee may, at its own cost and expense, remove in the ordinary course of maintenance, service, repair, overhaul or testing, any such parts, whether or not functioning properly, worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently rendered unfit for use, provided that Lessee will, at its own cost and expense, replace such parts as commercially promptly as practicable by a subject to the proviso in the immediately preceding sentence. All replacement Component which parts required pursuant to the above provisions of this Section 9.2 (“Replacement Parts”) shall be free and clear of all Liens (other than except for Permitted Encumbrances) Liens and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, except in the condition required by the terms case of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"Replacement Parts temporarily installed on an emergency basis). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component Part becoming incorporated or installed in or attached to any of the FacilityImprovements as above provided, without further act (and at no cost subject to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Valuesany Permitted Liens), (i) the replaced Component legal title to such Replacement Part shall no longer be thereupon vest in Lessor and shall become subject to this Facility Lease, (ii) such Replacement Part shall be deemed part of the Improvements for all purposes hereof to the same extent as the parts originally incorporated or installed in or attached to the Buildings and Improvements, (iii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component replaced part shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and shall no longer be deemed part of Improvements (or subject to the Lease Indenture Trusteelien in favor of any Person claiming by, through or under Lessor), and (iiiiv) title to an undivided interest equal to the Owner Lessor's Percentage in the case of any Replacement Component shall thereupon vest with Part temporarily installed on an emergency basis, upon the Owner Lessor and removal of such undivided interest shall (a) become subject to this Facility Lease andReplacement Part, so long as the Lessor Notes are outstanding, the any Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee shall have the right to remove such part, Component or portion of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior related to such removal, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160Replacement Part shall be removed.

Appears in 1 contract

Samples: Lease Agreement (Ca, Inc.)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Componenttesting, the Facility LesseeSublessee, at its own cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee Sublessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in as good an operating condition as as, and shall have a current and residual value, remaining economic useful life and utility at least equal to to, that of the Component replaced, assuming such replaced Component was in at least the condition and repair required to be maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Sublease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component")) as promptly as practicable. An undivided interest equal to the Owner LessorFacility Sublessor's Percentage in each Component at any time removed from the Facility shall remain subject to the Head Lease, the Facility Lease and this Facility LeaseSublease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor Facility Sublessor and with no adjustment to the Purchase Price, Sublease Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), ) (i) the replaced Component shall no longer be subject to the Head Lease, the Facility Lease or this Facility LeaseSublease, (ii) title to such Replacement Component shall vest in the Owner LessorCo-Owners and Oglethorpe's undivided interest equal therein shall become subject to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility LesseeOglethorpe Mortgage, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Facility Lessor's Percentage in the Replacement Component shall thereupon vest with become subject to the Owner Lessor Head Lease and such the Facility Lease, and (iv) an undivided interest equal to the Facility Sublessor's Percentage in such Replacement Component shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, the Lien of the Lease Indenture, Sublease and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Leasehereof. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Sublease to the contrary, if the Facility Lessee Sublessee or the Facility Operator has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as it; provided that no such Component may be so removed without being replaced if such removal would not diminish the current value, or residual value, utility or remaining economic useful life of the Facility or the Undivided Interest value by more than a de minimis amount below the then current amount, or residual value, diminish the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, assuming of the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200176-2830, 20011976-19 IRB 1156 or Rev. Proc. 2001-291, 2001-19 IRB 1160647.

Appears in 1 contract

Samples: Facility Sublease (Oglethorpe Power Corp)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own sole cost and expense, may remove or cause or permit to be removed from the Facility any Component; PROVIDEDprovided, HOWEVERhowever, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Permitted EncumbrancesLiens) and which shall be in at least as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such that the Component replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish the current value, residual value, utility or remaining economic useful life of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, in the condition required by the terms of this Facility Lease) or cause the Facility to become "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 IRB 1156 or Rev. Proc. 2001-29, 2001-19 IRB 1160 Lease (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENTReplacement Component"); and (b) cause such replacement to be performed in such a manner and with such a Replacement Component as shall not (i) materially diminish the current or residual value, remaining useful life or utility of the Facility as a whole below the current or residual value, the remaining useful life or the utility thereof immediately prior to such replacement (assuming the Facility was then in the condition required to be maintained by the terms of this Facility Lease) or (ii) cause the Facility or any substantial portion thereof to become "limited use" property within the meaning of Revenue Procedure 2001-28, 2001-19 I.R.B. 1156 or Revenue Procedure 2001-29, 2001-19 I.R.B. 1160. An undivided interest equal If any Component to the Owner Lessor's Percentage in each Component Facility that is subject to this Facility Lease is at any time removed from the Facility Facility, such Component shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Basic Lease Rent or Renewal Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (ix) the replaced Component shall no longer be subject to this Facility Lease, (iiy) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed such replaced Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iiiz) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (ai) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease Indenture, and (bii) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility LeaseLease and the other Operative Documents. Notwithstanding anything in this SECTION Section 7.2 or elsewhere in this Facility Lease to the contrary, if the Facility Lessee has determined that any part, a Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such partComponent without replacing it; provided, that no such Component may be so removed without being replaced if such removal would materially diminish the current or portion residual value, remaining useful life or utility of the Facility without replacing it as long as such removal would not diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount whole below the then current or residual value, the remaining economic useful life or the utility thereof (as measured immediately prior to such removal, removal (assuming the Facility is, at such time, was then in the condition required to be maintained by the terms of this Facility Lease) or cause the Facility or any substantial portion thereof to become "limited use propertyuse" property within the meaning of Rev. Proc. Revenue Procedure 2001-28, 2001-19 IRB I.R.B. 1156 or Rev. Proc. Revenue Procedure 2001-29, 2001-19 IRB I.R.B. 1160.

Appears in 1 contract

Samples: Facility Lease Agreement (Keyspan Corp)

Replacement of Components. In the ordinary course of maintenance, service, repair or testing of the Facility or any Component, the Facility Lessee, at its own no cost and expenseto the Owner Lessor, may remove or cause or permit to be removed from the Facility any Component; PROVIDED, HOWEVER, that the Facility Lessee shall (a) cause any such Component to be replaced as soon as commercially practicable by a replacement Component which shall be free and clear of all Liens (other than except Lease Permitted EncumbrancesLiens) and which shall be in as good an operating condition as and shall have a current and residual value, remaining economic useful life and utility at least equal to that of the Component replaced, assuming such replaced Component was maintained in accordance with the terms of this Facility Lease, and (b) cause such replacement to be performed in a manner that does not diminish diminish, other than in an immaterial respect, the current value, and residual value, utility or remaining economic useful life or utility of the Facility by more than a de minimis amount (as measured immediately prior to such replacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) , or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 1160 2 C.B. 647 (each such replacement Component being herein referred to as a "REPLACEMENT COMPONENT"). An undivided interest equal to the Owner Lessor's Percentage in each Component at any time removed from the Facility shall remain subject to this Facility Lease, wherever located, until such time as such Component shall be replaced by a Replacement Component which has been incorporated in the Facility and which meets the requirements for Replacement Components specified above. Immediately upon any Replacement Component becoming incorporated in the Facility, without further act (and at no cost to the Owner Lessor and with no adjustment to the Purchase Price, Price or Basic Lease Rent, Renewal Rent, Proportional Rent, Allocated Rent, Lessor Section 467 Loan Balance, Lessee Section 467 Loan Balance, Lessor Section 467 Interest, Lessee Section 467 Interest or Termination Values), (i) the replaced Component shall no longer be subject to this Facility Lease, (ii) title to the Owner Lessor's undivided interest equal to the Owner Lessor's Percentage in the removed Component shall thereupon vest in the Facility Lessee or such other Person as shall be designated by the Facility Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture Trustee, and (iii) title to an undivided interest equal to the Owner Lessor's Percentage in the Replacement Component shall thereupon vest with the Owner Lessor and such undivided interest shall (a) become subject to this Facility Lease and, so long as the Lessor Notes are outstanding, and the Lien of the Lease Indenture, and (b) be deemed a part of the Facility and the Undivided Interest for all purposes of this Facility Lease. Notwithstanding anything in this SECTION Section 7.2 to the contrary, if the Facility Lessee has determined that any part, Component or portion of the Facility is surplus or obsolete, the Facility Lessee it shall have the right to remove such part, Component or portion of the Facility without replacing it as long as if such removal would not not, other than in an immaterial respect, diminish the current value, residual value, utility or remaining economic useful life of the Facility or the Undivided Interest by more than a de minimis amount below the then current or residual value, the utility or the remaining economic useful life or of the utility thereof (Facility, as measured immediately prior to such removalreplacement, assuming the Facility is, at such time, shall then be in the condition required to have been maintained by the terms of this Facility Lease) Lease or cause the Facility to become "limited use propertyuse" property within the meaning of Rev. Proc. 200175-28, 20011975-19 IRB 1156 1 C.B. 752 or Rev. Proc. 200176-2930, 20011976-19 IRB 11602 C.B. 647.

Appears in 1 contract

Samples: Facility Lease Agreement (Edison Mission Energy)

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