Common use of Prerequisites for Delivery Clause in Contracts

Prerequisites for Delivery. The obligation of the Lessors to deliver each Unit Component under Article 4 in each Individual Agreement is subject to the satisfaction of all of the following conditions unless the Lessors notify the Lessee not to require the satisfaction of any of such conditions prior to the completion of the delivery: (1) No event has occurred by the Scheduled Delivery Date because of which the Lessors or Lessee expect the change of laws, administrative orders, or ordinances, or other changes under laws, administrative guidance or tax policy causing the transaction contemplated in the Relating Agreements to become unlawful, or making the Lessors or Lessee to reasonably determine it appropriate to cancel or postpone the execution of such transaction for the purpose thereof (provided, however, that the Lessors or Lessee shall consult with the other parties in advance in addition to other actions such as making a prompt notice to the other parties in the event the Lessor is aware of the occurrence of any event of this paragraph). (2) The relevant Unit Component has been purchased by the Lessee from the Property Manufacturer under the Original Purchase Agreement prior to the Scheduled Delivery Date, and the Lessee acquires the ownership without any Encumbrances (except for the Approved Encumbrances). (3) The Unit Component is insured by the effective insurance as of the Scheduled Delivery Date pursuant to Article 19. (4) No Event of Default has occurred. (5) No event has occurred for which, as reasonably determined by the Lessors, any Total Loss Event is or will be constituted. (6) The Relating Agreements in which the Lessors or the Lessee are/is party/parties have been executed and delivered by all relevant parties, and remain in full force and effect. (7) The representation and warranty of the Lessee under Article 20 are all true and correct as of the Scheduled Delivery Date based on the situation on such date.