Common use of Permitted Subleases Clause in Contracts

Permitted Subleases. Provided that no Special Default or Lease Event of Default has occurred and is continuing, enter into a lease of any Aircraft with a Permitted Sublessee; provided, that the Security Trustee shall have received: (A) evidence that: (1) all necessary governmental approvals required for such Aircraft to be imported and, if requested by the Security Trustee (and such request is reasonable in light of the circumstances) and if and to the extent obtainable with reasonable effort and if it is otherwise customary to obtain the same in such jurisdiction, exported from the applicable country of domicile upon repossession of such leased equipment by the Security Trustee (and the Lessee as lessor) shall have been obtained prior to commencement of any such lease; (2) the insurance requirements of Section 10 are satisfied and that War Risk Insurance shall be carried and maintained of such scope and coverage, and subject to such exclusions and exceptions, as is standard for air carriers flying similar equipment on routes comparable to those flown by such Aircraft; and (3) if re-registration is required, the Lessee shall have complied with the provisions of Section 7(a); and (B) in the case of a Sublease to any air carrier that is listed in Schedule 1, an opinion of counsel (which counsel and opinion are satisfactory to the Security Trustee) that: (1) it is not necessary for the Security Trustee or any Holder to register or qualify to do business in such jurisdiction solely as a result of the proposed lease, unless the only result of such registration or qualification is a Tax or cost that the Lessee is indemnifying such party against; (2) the Security Trustee’s Lien on such Aircraft will be recognized; (3) the laws of such jurisdiction of domicile require fair compensation by the government of such jurisdiction payable in a currency freely convertible into Dollars for the loss of the title to such Aircraft or such Engine in the event of the requisition by such government of title (unless the Lessee shall provide insurance covering the risk of requisition of title to such Aircraft by the government of such jurisdiction so long as such Aircraft is subject to such lease); (4) the required agreement of such non-U.S. air carrier that its rights under the Sublease are subject and subordinate to all of the terms of this Lease is enforceable against such non-U.S. air carrier under applicable law (subject only to customary exceptions as to enforceability); and (5) there exist no possessory rights in favor of such Sublessee under the laws of such jurisdiction which would, upon bankruptcy of or other default by the Sublessee, prevent or unreasonably delay the return or repossession of such Aircraft to the Lessor or the Security Trustee in accordance with and when permitted by the terms of Section 14 hereof upon the exercise by the Security Trustee of remedies under Section 14 hereof.

Permitted Subleases. Provided that no Special Default or Lease Event of Default has occurred and is continuing, enter into a lease of any the Aircraft with a Permitted Sublessee; provided, that the Security Trustee shall have received: (A) evidence that: (1) all necessary governmental approvals required for such the Aircraft to be imported and, if requested by the Security Trustee (and such request is reasonable in light of the circumstances) and if and to the extent obtainable with reasonable effort and if it is otherwise customary to obtain the same in such jurisdiction, exported from the applicable country of domicile upon repossession of such leased equipment by the Security Trustee (and the Lessee as lessor) shall have been obtained prior to commencement of any such lease; (2) the insurance requirements of Section 10 are satisfied and that War Risk Insurance shall be carried and maintained of such scope and coverage, and subject to such exclusions and exceptions, as is standard for air carriers flying similar equipment on routes comparable to those flown by such the Aircraft; and (3) if re-registration is required, the Lessee shall have complied with the provisions of Section 7(a); and (B) in the case of a Sublease to any air carrier that is listed in Schedule 1, an opinion of counsel (which counsel and opinion are satisfactory to the Security Trustee) that: (1) it is not necessary for the Security Trustee or any Holder to register or qualify to do business in such jurisdiction solely as a result of the proposed lease, unless the only result of such registration or qualification is a Tax or cost that the Lessee is indemnifying such party against; (2) the Security Trustee’s Lien on such the Aircraft will be recognized; (3) the laws of such jurisdiction of domicile require fair compensation by the government of such jurisdiction payable in a currency freely convertible into Dollars for the loss of the title to such the Aircraft or such Engine in the event of the requisition by such government of title (unless the Lessee shall provide insurance covering the risk of requisition of title to such the Aircraft by the government of such jurisdiction so long as such the Aircraft is subject to such lease); (4) the required agreement of such non-U.S. air carrier that its rights under the Sublease are subject and subordinate to all of the terms of this Lease is enforceable against such non-U.S. air carrier under applicable law (subject only to customary exceptions as to enforceability); and (5) there exist no possessory rights in favor of such Sublessee under the laws of such jurisdiction which would, upon bankruptcy of or other default by the Sublessee, prevent or unreasonably delay the return or repossession of such the Aircraft to the Lessor or the Security Trustee in accordance with and when permitted by the terms of Section 14 hereof upon the exercise by the Security Trustee of remedies under Section 14 hereof.