Craf Program. To the extent any of the AFL III Aircraft or any component thereof are leased or under contract to the United States or any agency or instrumentality thereof pursuant to the Civil Reserve Air Fleet Program established pursuant to 10 U.S.C. 9511-13 (as administered pursuant to Executive Order 1268, or any substitute regulation or order), or a similar program, the Borrower shall use its reasonable best efforts to take such actions as the Administrative Agent may reasonably request to ensure that the Administrative Agent, for the benefit of the Lenders, (i) is a loss payee under any insurance policy or indemnity granted to the Borrower or any of its affiliates by the United States or any agency or instrumentality thereof and/or (ii) has a perfected security interest in the proceeds of any payments made by the United States or any agency or instrumentality thereof pursuant to any such insurance policy or indemnity.
Craf Program. (a) Notwithstanding any of the provisions of this Agreement or any other Debt Document, Debtor may transfer possession of the Collateral to the United States of America or any instrumentality or agency thereof as part of the CRAF Program. Debtor will promptly notify Secured Party in writing in the event of the requisition for use of the Collateral under a CRAF Program activation by the U.S. Government. All of Debtor’s obligations under the Debt Documents will continue to the same extent as if such requisition had not occurred. Any provisions of the Debt Documents to the contrary notwithstanding, if there is a requisition for use of the Engine pursuant to the CRAF Program and/or CRAF Program activation, Secured Party agrees that the insurance the Debtor is required to maintain pursuant to terms hereof, so long as the requisitioned Collateral remains Collateral, may be supplemented or replaced by insurances provided under Title XIII of the Federal Aviation Act of 1958, and /or U.S. government indemnification (which Title XIII insurances and indemnification will be, as to the Collateral, in an amount not less than 110% of the balance of the promissory note signed in connection with such Collateral and, as to all other insurances, in amounts not less than those required by the terms of the Loan Agreement); provided, however, that Debtor will remain responsible for full compliance with all the provisions of the Debt Documents, to the extent Title XIII and/or the U.S. Government indemnification do not satisfy Debtor’s obligations under the Loan Documents.
Craf Program. To the extent any of the Financed Aircraft or any component thereof are leased or under contract to the United States or any agency or instrumentality thereof pursuant to the Civil Reserve Air Fleet Program (the "CRAF PROGRAM") or a similar program, Company shall take such actions as Administrative Agent may reasonably request to ensure that Administrative Agent, for the benefit of the Lenders, (i) is a loss payee under any insurance policy or indemnity granted to Company or any of its affiliates by the United States or any agency or instrumentality thereof and/or (ii) has a perfected security interest in the proceeds of any payments made by the United States or any agency or instrumentality thereof pursuant to any such insurance policy or indemnity.
Craf Program
