Common use of Permanent Replacement Clause in Contracts

Permanent Replacement. If Lessee permanently replaces an Engine or Part: (i) in the case of an Engine, it must be a Replacement Engine; (ii) in the case of a Part, the replacement part must be an OEM approved Part, be in good operating condition, must not have been involved in any accident or incident, must not have been installed on an aircraft registered on a military aircraft register, must have as much useful life available until the next expected maintenance procedure, must be of the same or a more advanced make and model and of the same interchangeable modification status as the Part it is replacing and it must otherwise of an equivalent value and utility as the Part it is replacing; (iii) upon installation on the Aircraft the Replacement Engine or replacement part must have become and remain, until replaced in accordance with this Section 8.11, the property of Owner free from Security Interests (other than Permitted Liens), and subject to any applicable Financing Documents; (iv) Lessee must have full details of the source and maintenance records of the Replacement Engine or replacement part. In the case of replacement serialized parts, documentation shall be back to birth and in the case of serialized rotable parts, shall have a complete service history; and (v) Lessee shall provide a legal opinion in respect of the perfection of Financing Parties' Representative interest in such replaced Engine or Part.