Common use of Payment for Modifications and Replacement Components Clause in Contracts

Payment for Modifications and Replacement Components. (a) The Lessee shall be permitted at any time to finance the cost of any Severable Modification to the Production System not required by any Governmental Rule or Governmental Action, directly or indirectly, including, without limitation, on a third party ownership basis. (b) If the Lessee intends to seek financing for the cost of any Severable Modification to the Production System that is required by any Governmental Rule or Governmental Action to be made or any Nonseverable Modification to the Production System, the Lessee shall first provide the Lessor and the Owner Participant with written notice of such Modification at least 45 days prior to the date of such proposed financing. The cost of the Lessor's Share of such Modification may be financed through the issuance of Additional Notes as provided in Section 14 of the Participation Agreement and subject to the conditions set forth therein.