Exercise of Remedies by Foreign Note Holders Clause Samples
The 'Exercise of Remedies by Foreign Note Holders' clause defines the rights and procedures available to note holders who are not domiciled in the issuer's jurisdiction when seeking to enforce their claims or remedies under the note agreement. Typically, this clause outlines any additional steps, notifications, or legal requirements that foreign note holders must follow, such as appointing a local agent for service of process or complying with local court procedures. Its core practical function is to ensure that foreign investors can effectively exercise their rights while also providing the issuer with clarity and predictability regarding the enforcement process, thereby reducing legal uncertainty and facilitating cross-border investment.
Exercise of Remedies by Foreign Note Holders. If the Indenture Trustee shall exercise remedies pursuant to this Article IV, at a time when (i) the Aircraft is registered with the Federal Aviation Administration, (ii) 25% or more of the then unpaid Principal Amount of the Equipment Notes is held by one or more Persons which are not a "citizen of the United States" within the meaning of Section 40102(a)(15) of the Federal Aviation Act and (iii) remedies are to be exercised pursuant to this Article IV as a result of the occurrence of an Indenture Event of Default which is not a Lease Event of Default, the Indenture Trustee shall make arrangements, if any, as may be required by law so that such exercise of remedies shall not result in the ineligibility of the Aircraft to be registered under the Federal Aviation Act.