Replacement of Engines. As promptly as practicable, and in any event on or before the Business Day next preceding the 90th day following the date of occurrence of such Event of Loss, the Grantor shall subject or cause to be subjected to this Mortgage in replacement thereof, a replacement Engine of the same model and having not less than the same value as the Engine being replaced and which shall be free and clear of all Liens (other than Permitted Liens) and which shall be of like kind and not less than the same value as, and which shall be in as good operating condition as, the Engine so replaced (for such purpose, it shall be assumed that such Engine was in the condition and repair required by the terms hereof) and, following such replacement, the replaced Engine shall be released from the Lien created by this Mortgage. If the Grantor shall not perform its obligation to effect such replacement hereunder during the period of time provided herein, such failure shall be an Event of Default.
Replacement of Engines. Upon not less than 35 days' prior written notice to Sublessor, Sublessee may, subject to Sublessor's prior written consent (which may be given or withheld in its sole discretion), replace any Engine subleased hereunder with another engine (the "replacement Engine") of the same or improved make and model as the Engine which is to be replaced and which has a value and utility (taking into account such Engine's life-limited parts and time since heavy maintenance on each of such Engine's modules) at least equivalent to, and in as good operating condition as, such replaced Engine assuming such replaced Engine was in the condition and repair required by the terms of this Sublease. Such replacement Engine shall be deemed to be an "Engine" and Sublessor and Sublessee shall comply with the provisions of Section 7.2(a) and 7.3 with regard to the replacement Engine and the Engine so replaced.
Replacement of Engines. If insurance proceeds are received with respect to the Engine that has been or is being replaced (and which by the terms of this Section 3.6 may be replaced) by the Grantor pursuant to Section 3.6(a), such insurance proceeds shall be paid over to, or retained by, the Mortgagee, and at the time of such replacement in accordance with Section 3.6(a) so much of such insurance proceeds remaining after reimbursement of the Mortgagee for costs and expenses (and the Mortgagee is hereby authorized to so apply such insurance proceeds to such reimbursement) shall be paid over to the Grantor and as provided for in Section 3.5.
Replacement of Engines. Unlike other parts, engines are considered such a valuable part of the aircraft that, barring a total loss of the engine, the aircraft should be returned in principle at the end of the lease term with the same engines with which it was delivered. Permanent replacement of engines typically does not, in this author’s experience, typically cause a problem in engine leasing – if an engine is destroyed, for example, it will be replaced permanently by an engine and typically the lessor will want the lessee, even if the lease provides for automatic vesting of title upon installation, to provide a bill of sale establishing title. Permanent replacement of engines is not otherwise typically allowed. Temporary replacement of engines is where, heretofore, problems have been faced by this author in practice, and owners of engines worry that, should their engine temporarily be installed on another airframe, the owner of that other airframe may acquire title to that engine by operation of law pursuant to an applicable rule of national property law.408 Thus, making clear in drafting legal documentation that title to temporarily replaced or temporary replacement engines does not pass may be more important than making clear that title to permanently replaced or permanent replacement engines does pass. Leaving aside the issue of the distinction of permanent and temporary replacement of engines, and turning to the broader issue in hand of the ability of the parties to determine 407 Vide 3.10.2.4.3 infra. 408 Engine owners often request the airframe owner to sign a letter recognising the former’s ownership rights in the installed engine. If the letter is so limited, this should not cause a problem. Issues arise where the requested letters go beyond this, requiring notification or consent to the former before the latter may exercise repossession rights over the aircraft so long as the engine is installed. This is interference in the airframe owner’s ownership rights in the aircraft and contractual rights under the lease and should be resisted. transfer of title of engine ownership, we need to examine not only applicable national law but also its effect at global level. Drafting the contract so as to reflect the will of the parties is important, and, by having a governing law clause, the parties can ensure that the lex loci contractus, being the law governing the contract, either because the contract was concluded in a particular jurisdiction or in the contract the parties chose...
Replacement of Engines. If Net Collateral Insurance Proceeds are received with respect to the Engine that has been or is being replaced (and which by the terms of this Section 3.6 may be replaced) by the Grantor pursuant to Section 3.5(a), such Net Collateral Insurance Proceeds shall be paid over to, or retained by, the Mortgagee, and at the time of such replacement in accordance with Section 3.6(a), the amount of such Net Collateral Insurance Proceeds remaining after reimbursement of the Mortgagee for costs and expenses (and the Mortgagee is hereby authorized to so apply such Net Collateral Insurance Proceeds to such reimbursement) shall be paid over to the Grantor and as provided for in Section 3.5.
Replacement of Engines. 36 (d) Use of Aircraft Not Constituting an Event of Loss.....................................36 (e) Default...............................................................................36 13.
Replacement of Engines. If insurance proceeds are received with respect to the Engine that has been or is being replaced (and which by the terms of this Section 12 may be replaced) by the Grantor pursuant to Section 12(a), such insurance proceeds shall be paid over to, or retained by, the Agent, and at the time of such replacement in accordance with Section 12.5(a) so much of such insurance proceeds remaining after reimbursement of the Agent for costs and expenses (and the Agent is hereby authorized to so apply such insurance proceeds to such reimbursement) shall be paid over to the Grantor and as provided for in Section 11.
