Common use of Maintenance and Operation Clause in Contracts

Maintenance and Operation. Lessee, at its own cost and expense, (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines to be duly registered and remain duly registered in the name of Lessor in accordance with the Act and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Act; and (iii) will service, repair, inspect, test, maintain and overhaul the Airframe, each Engine and each Spare Engine and install replacement equipment and parts on the Airframe, each Engine and each Spare Engine (A) so as to keep the Airframe, each Engine and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine and each Spare Engine to be utilized in commercial operations, (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times under the Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then subject to the provisions of Section 13 hereof, so long as Lessee is diligently taking or causing to be taken all necessary action to promptly correct the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by Lessee with respect to the same or similar aircraft and engines owned or operated by Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of similar equipment, and (D) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof. Lessee shall maintain all records, logs and other materials which may be required to permit the Airframe, each Engine and each Spare Engine to be so utilized. Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time in force and applicable to the Aircraft, Engines and Spare Engines. Neither the Airframe nor any Engine nor any Spare Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration of the Airframe or any Engine or Spare Engine, Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that Lessee may, in good faith (after having delivered to Lessor and Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which does not, in Lessor's and Agent's opinion (in their sole discretion), adversely affect the interests of Lessor, Agent or any Lender. Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insurance.

Appears in 2 contracts

Samples: Lease Agreement (Atlas Air Inc), Lease Agreement (Atlas Air Inc)

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Maintenance and Operation. The Lessee, at its own cost and expense, will at all times during the Term: (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines to be duly registered in compliance with all CAA regulations applicable to XxXxxxxxx Xxxxxxx MD 82 aircraft, certificated for interstate and overseas operation under Finnish Applicable Law or such other Applicable Law of such other Applicable Jurisdiction, as the case may be, and to be and remain duly registered in with the name of Lessor CAA in accordance with the Act and otherwise registered under all applicable laws in the name of the United States so Lessor as to be eligible to operate in commercial air service under the Actowner; and (iiiii) will maintain, operate, service, repair, inspect, test, maintain overhaul and overhaul test the Airframe, Airframe and each Engine (including but not limited to all program monitoring, program reliability and each Spare Engine and install replacement equipment and parts on the Airframe, each Engine and each Spare Engine (A) so as to keep the Airframe, each Engine and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine and each Spare Engine to be utilized in commercial operations, (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times program reporting requirements under the Approved Maintenance Program and the Act), except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then subject to the provisions of Section 13 hereof, so long as Lessee is diligently taking or causing to be taken all necessary action to promptly correct the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by Lessee with respect to the same or similar aircraft and engines owned or operated by Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of same manner and with the same care as used by the Lessee with similar equipmentaircraft operated by the Lessee, and (D) in such manner condition as may be necessary to maintain in full force all warranties enable the airworthiness certificate of the manufacturers thereof. Lessee shall Aircraft to be maintained in good standing at all times under the Act, Finnish Applicable Law or such other Applicable Law of such other Applicable Jurisdiction as the case may be, and in accordance with all manufacturers' mandatory service bulletins with respect thereto, (iii) maintain all records, logs logs, manuals, manufacturer's service bulletins, CAA and other materials which may be required to permit the Airframe, each Engine and each Spare Engine to be so utilized. Lessee will comply in all material respects with all FAA airworthiness directives, mandatory notes engineering and modification orders, and other Records and data required by Finnish Applicable Law or modifications or similar requirements affecting such other Applicable Law of such other Applicable Jurisdiction as the same case may be, to be maintained in respect of the Airframe and each Engine; (including those issued iv) perform all obligations required to be performed by it under the terms of all applicable warranties, service life policies and patent indemnities of the manufacturer or supplier) supplier of the Aircraft or any Part thereof, in such condition so as to respect of the Aircraft or any part thereof. The Lessee shall comply with this Lease all (i) applicable requirements of Finnish Applicable Law or such other Applicable Law of such Applicable Jurisdiction, as the case may be, and all other applicable environmental, noise, air pollution and other similar standards of Finland or such other Applicable Jurisdiction, as the case may be, and the rules and regulations of the FAA International Civil Aviation Organization in effect from time to time in force and applicable to the extent that such standards are required to be complied with (without regard to any exemption waiving or delaying compliance therewith applicable solely to the Lessee's use of the Aircraft but not applicable or available generally to any one or more other European operators) and (ii) the Lessee, at its own expense, forthwith upon the delivery thereof hereunder, shall cause the Aircraft to be duly registered (provided the Lessor or its designee is eligible to be the registered owner of the Aircraft) and at all times thereafter to remain duly registered in compliance (provided the Lessor or its designee is eligible to be the registered owner of the Aircraft) with all Finnish registration and airworthiness requirements or those of any other Applicable Jurisdiction, Engines and Spare Enginesas the case may be. Neither The Lessee agrees that the Airframe nor any Engine nor any Spare and each Engine will not be maintained, serviced, repaired, overhauled, tested, used or operated operated: (A) in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), ) or other Applicable Law or in violation of any the airworthiness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration certificates of the Airframe or any Engine or Spare Engine, Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that Lessee may, in good faith Aircraft; (after having delivered to Lessor and Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which does not, in Lessor's and Agent's opinion (in their sole discretion), adversely affect the interests of Lessor, Agent or any Lender. Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (IB) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an by, or in any manner or for any purpose inconsistent with the terms of, any insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use required by the United States terms of America, and then only if Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, 11 hereof; or (IIC) in any recognized or threatened area of hostilities unless fully covered to the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such Lessor's satisfaction by war risk insurance.

Appears in 2 contracts

Samples: Lease Agreement (American Income Fund I-E), Operating Lease Agreement (American Income Fund I-E)

Maintenance and Operation. The Lessee, at its own cost and expense, until the expiration or earlier termination of this Lease, (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Federal Aviation Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines to be duly registered and remain duly registered with the FAA in the name of the Lessor in accordance with the Federal Aviation Act and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Federal Aviation Act; and (iii) will service, repair, inspect, test, maintain and overhaul the Airframe, each Engine Airframe and each Spare Engine and Engine, install replacement equipment and parts on the Airframe, Airframe and each Engine and each Spare Engine maintain the Technical Records (A) so as to keep the Airframe, each Engine Airframe and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be utilized in commercial operationsoperations in the United States, (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times under the Federal Aviation Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if if, following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then then, subject to the provisions of Section 13 hereof, so long as the Lessee is diligently taking or causing to be taken all necessary action promptly to promptly correct the condition which that caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with the Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by the Lessee with respect to the same or similar aircraft and engines owned or operated by the Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of similar equipment, and (D) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof, and (E) to enable the Lessee to deliver the Aircraft to the Lessor in accordance with Section 8. The Lessee shall maintain all records, logs and other materials which that may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be so utilized. The Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time in force and applicable to the Aircraft, Engines Aircraft and Spare Engines. Neither the Airframe nor any Engine nor any Spare Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration of the Airframe or any Engine or Spare Engine, the Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that the Lessee may, in good faith (after having delivered to the Lessor and the Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which that does not, in the Lessor's and the Agent's opinion (in their sole discretion), adversely affect the interests of the Lessor, the Agent or any Lender. The Lessee covenants and agrees with the Lessor that, the better to ensure the availability of the benefits of Section 1110 of the Bankruptcy Code, the Lessee shall not object to any motion, petition or application filed by the Lessor with any bankruptcy court having jurisdiction over the Lessee, solely as to the portion thereof that seeks, and to the extent that such motion, petition or application seeks, a determination that such Section 1110 of the Bankruptcy Code applies to the lease of the Aircraft hereunder. In the event that Section 1110 is amended, or if it is repealed and another statute is enacted in lieu thereof, the Lessor and the Lessee (at the Lessee's expense) agree to amend this Lease and take such other action not inconsistent with this Lease as the Lessor reasonably deems necessary so as to afford to the Lessor the rights and benefits as such amended or substituted statute confers upon owners, lessors and conditional vendors of aircraft similarly situated to the Lessor. The Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if the Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. The Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insurance.

Appears in 2 contracts

Samples: Lease Agreement (Atlas Air Worldwide Holdings Inc), Lease Agreement (Atlas Air Worldwide Holdings Inc)

Maintenance and Operation. The Lessee, at its own cost and expense, until the expiration or earlier termination of this Lease, (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Federal Aviation Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines to be duly registered and remain duly registered with the FAA in the name of the Lessor in accordance with the Federal Aviation Act and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Federal Aviation Act; and (iii) will service, repair, inspect, test, maintain and overhaul the Airframe, each Engine Airframe and each Spare Engine and Engine, install replacement equipment and parts on the Airframe, Airframe and each Engine and each Spare Engine maintain the Technical Records (A) so as to keep the Airframe, each Engine Airframe and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be utilized in commercial operationsoperations in the United States, (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times under the Federal Aviation Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if if, following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then then, subject to the provisions of Section 13 hereof, so long as the Lessee is diligently taking or causing to be taken all necessary action promptly to promptly correct the condition which that caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with the Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by the Lessee with respect to the same or similar aircraft and engines owned or operated by the Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of similar equipment, and (D) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof, and (E) to enable the Lessee to deliver the Aircraft to the Lessor in accordance with Section 8. The Lessee shall maintain all records, logs and other materials which that may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be so utilized. The Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time in force and applicable to the Aircraft, Engines Aircraft and Spare Engines. Neither the Airframe nor any Engine nor any Spare Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), or in violation of any airworthiness airworthi- ness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration of the Airframe or any Engine or Spare Engine, the Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that the Lessee may, in good faith (after having delivered to the Lessor and the Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which that does not, in the Lessor's and the Agent's opinion (in their sole discretion), adversely affect the interests of the Lessor, the Agent or any Lender. The Lessee covenants and agrees with the Lessor that, the better to ensure the availability of the benefits of Section 1110 of the Bankruptcy Code, the Lessee shall not object to any motion, petition or application filed by the Lessor with any bankruptcy court having jurisdiction over the Lessee, solely as to the portion thereof that seeks, and to the extent that such motion, petition or application seeks, a determination that such Section 1110 of the Bankruptcy Code applies to the lease of the Aircraft hereunder. In the event that Section 1110 is amended, or if it is repealed and another statute is enacted in lieu thereof, the Lessor and the Lessee (at the Lessee's expense) agree to amend this Lease and take such other action not inconsistent with this Lease as the Lessor reasonably deems necessary so as to afford to the Lessor the rights and benefits as such amended or substituted statute confers upon owners, lessors and conditional vendors of aircraft similarly situated to the Lessor. The Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if the Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. The Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insurance.

Appears in 1 contract

Samples: Lease Agreement (Atlas Air Inc)

Maintenance and Operation. The Lessee, at its own cost and expense, until the expiration or earlier termination of this Lease, (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Federal Aviation Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines to be duly registered and remain duly registered with the FAA in the name of the Lessor in accordance with the Federal Aviation Act and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Federal Aviation Act; and (iii) will service, repair, inspect, test, maintain and overhaul the Airframeeach Engine, each Engine and each Spare Engine and install replacement equipment and parts on the Airframe, each Engine and each Spare Engine maintain the Technical Records (A) so as to keep the Airframe, each Engine and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine and each Spare Engine to be utilized in commercial operationsoperations in the United States, (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times under the Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then subject to the provisions of Section 13 hereof, so long as Lessee is diligently taking or causing to be taken all necessary action to promptly correct the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with the Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by the Lessee with respect to the same or similar aircraft and engines owned or operated by the Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of similar equipment, and (DC) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof, and (D) to enable the Lessee to deliver the Engines to the Lessor in accordance with Section 8. The Lessee shall maintain all records, logs and other materials which that may be required to permit the Airframe, each Engine and each Spare Engine to be so utilized. The Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time in force and applicable to the Aircraft, Engines and Spare Engines. Neither the Airframe nor any Engine nor any Spare No Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration of the Airframe or any Engine or Spare Engine, the Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that the Lessee may, in good faith (after having delivered to the Lessor and the Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which that does not, in the Lessor's and the Agent's opinion (in their sole discretion), adversely affect the interests of the Lessor, the Agent or any Lender. The Lessee covenants and agrees with the Lessor that, the better to ensure the availability of the benefits of Section 1110 of the Bankruptcy Code, the Lessee shall not object to any motion, petition or application filed by the Lessor with any bankruptcy court having jurisdiction over the Lessee, solely as to the portion thereof that seeks, and to the extent that such motion, petition or application seeks, a determination that such Section 1110 of the Bankruptcy Code applies to the lease of the Engines hereunder. In the event that Section 1110 is amended, or if it is repealed and another statute is enacted in lieu thereof, the Lessor and the Lessee (at the Lessee's expense) agree to amend this Lease and take such other action not inconsistent with this Lease as the Lessor reasonably deems necessary so as to afford to the Lessor the rights and benefits as such amended or substituted statute confers upon owners, lessors and conditional vendors of aircraft engines similarly situated to the Lessor. The Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if the Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. The Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit per- mit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insurance.

Appears in 1 contract

Samples: Lease Agreement (Atlas Air Inc)

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Maintenance and Operation. Lessee, at its own cost and expense, will (i) will be a "citizen of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Act and hold all necessary air carrier operating certificates; (ii) will cause ownership of the Aircraft and Spare Engines Air- craft to be duly registered and remain duly registered in the name of Lessor in accordance with the Act and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Act; and (iii) will service, repair, inspect, test, maintain and overhaul the Airframe, each Engine Airframe and each Spare Engine and install replacement equipment and parts on the Airframe, Airframe and each Engine and install replacement equipment and parts on the Airframe and each Spare Engine (A) so as to keep the Airframe, each Engine Airframe and each Spare Engine in such operating condition as may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be utilized in commercial operations, operations (B) so as to enable the airworthiness certification of the Airframe to be maintained in good standing at all times under the Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then subject to the provisions of Section 13 hereof, so long as Lessee is diligently taking or causing to be taken all necessary action to promptly correct the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and with the same care used by Lessee with respect to the same or similar aircraft and engines owned or operated by Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent maintenance of similar equipment, and (D) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof. Lessee shall maintain all records, logs and other materials which may be required to permit the Airframe, each Engine Airframe and each Spare Engine to be so utilized. Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time in force and applicable to the Aircraft, Engines Aircraft and Spare Engines. Neither the Airframe nor any Engine nor any Spare Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration of the Airframe or any Engine or Spare Engine, Lessee, at its own cost and expense, will conform thereto or obtain conformance therewith and will maintain the same in proper operating condition under such laws, rules, regulations and orders, provided, however, that Lessee may, in good faith (after having delivered to Lessor and Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which does not, in Lessor's and Agent's opinion (in their sole discretion), adversely affect the interests of Lessor, Agent or any Lender. Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insurance.

Appears in 1 contract

Samples: Lease Agreement (Atlas Air Inc)

Maintenance and Operation. LesseeExcept as set forth in the next succeeding sentence, at its own cost and expense, Lessee shall (i) will maintain, inspect, service, repair, overhaul and test the Airframe and each Engine in accordance with (a) all required procedures under any maintenance manuals initially furnished with the Aircraft, including any subsequent amendments or supplements to such manuals issued by the Airframe Manufacturer or Engine Manufacturer from time to time, (b) all mandatory "Service Bulletins" and "Aircraft Modification Kits" issued, supplied, or available by or through the Airframe Manufacturer and/or the Engine Manufacturer with respect to the Aircraft, and (c) all "airworthiness alerts" and Airworthiness Directives issued by the Federal Aviation Administration or similar regulatory agency having jurisdictional authority, and whenever possible causing compliance to such Directives to be a "citizen completed through corrective modification in lieu of the United States" as defined in Section 40102(15) of Title 49 of the United States Code and will be an air carrier certificated under Sections 401 and 609 of the Act and hold all necessary air carrier operating certificatesmanual restrictions; (ii) will cause maintain all records, logs and other materials required by the Federal Aviation Administration to be maintained in respect of the avionics, Airframe and each Engine or by the Airframe Manufacturer or Engine Manufacturer for enforcement of any warranties; (iii) with due diligence after written request, furnish to Lessor such information as may be required to enable Lessor to timely file any reports required by any governmental authority as a result of Lessor's ownership of the Aircraft Aircraft; and Spare Engines to (iv) not change the Aircraft's primary hangar location without the consent of Lessor, which consent shall not be duly registered unreasonably withheld. Notwithstanding the foregoing, Lessor shall be responsible for the costs and remain duly registered expenses of the Hot Section Inspection and 3,000 Hours Time Between Overhaul, as such terms are defined in the name Cessna Maintenance Manual. Lessee shall not remove the Aircraft from the Continental United States, or from the base indicated for a period in excess of Lessor thirty (30) days, without the express, prior written consent of Lessor. All maintenance procedures required by Section 9.1(i) shall be undertaken and completed in accordance with the Act Airframe Manufacturer's or Engine Manufacturer's required procedures, and otherwise registered under all applicable laws of the United States so as to be eligible to operate in commercial air service under the Act; only by properly trained, licensed, and (iii) will servicecertificated maintenance sources and maintenance personnel, repair, inspect, test, maintain and overhaul the Airframe, each Engine and each Spare Engine and install replacement equipment and parts on the Airframe, each Engine and each Spare Engine (A) so as to keep the Airframe, Airframe and each Engine in as good operating condition as when delivered to Lessee hereunder, ordinary wear and each Spare Engine tear excepted, and so as to keep the Aircraft in such operating condition as may be required to permit the Airframe, each Engine and each Spare Engine to be utilized in commercial operations, (B) so as necessary to enable the airworthiness certification of the Airframe such Aircraft to be maintained in good standing at all times under the Federal Aviation Act, except when aircraft of the same type, model or series as the Airframe (powered by engines of the same type as those with which the Airframe . Lessee further agrees that it shall be equipped at the time of grounding) registered in the United States have been grounded by the FAA; provided, however, that if following its issuance, the United States FAA airworthiness certificate of the Aircraft shall be withdrawn, then subject to the provisions of Section 13 hereof, so long as Lessee is diligently taking or causing to be taken all necessary action to promptly correct the condition which caused such withdrawal, no Lease Event of Default shall arise from such withdrawal, (C) in accordance with Lessee's FAA-approved maintenance, inspection and maintenance control programs, and in the same manner and comply with the same care used by Lessee with respect to the same or similar aircraft and engines owned or operated by Lessee so as to keep the same in as good operating condition as when originally leased hereunder, ordinary wear and tear excepted, which practices shall at all times be at or above the standard of the industry in the United States for prudent Engine Manufacturer's maintenance of similar equipment, and (D) in such manner as may be necessary to maintain in full force all warranties of the manufacturers thereof. Lessee shall maintain all records, logs and other materials which may be required to permit the Airframe, each Engine and each Spare Engine to be so utilized. Lessee will comply in all material respects with all airworthiness directives, mandatory notes or modifications or similar requirements affecting the same (including those issued by the manufacturer or supplier) in such condition so as to comply with this Lease and the rules and regulations of the FAA from time to time service program currently in force and applicable (a certified copy of which has been provided to the Aircraft, Engines and Spare Engines. Neither the Airframe nor any Engine nor any Spare Engine will be maintained, used or operated in violation of any 62 law or any rule, regulation or order of any government or governmental authority having jurisdiction (domestic or foreignLessor), or an equivalent maintenance program authorized in violation of any airworthiness certificatewriting by Lessor, license or registration relating to for the Airframe or such Engine or Spare Engine issued by any such authority, and in the event that such laws, rules, regulations or orders require alteration full term of the Airframe or any Engine or Spare Engine, Lessee, at its own cost Lease and expense, will conform thereto or obtain conformance therewith and will maintain shall take all steps necessary under the same in proper operating condition under terms thereof to keep such laws, rules, regulations and orders, provided, however, that Lessee may, in good faith (after having delivered to Lessor and Agent an Officers' Certificate stating the facts with respect thereto), contest the validity or application of any such law, rule, regulation or order in any reasonable manner which does not, in Lessor's and Agent's opinion (in their sole discretion), adversely affect the interests of Lessor, Agent or any Lender. Lessee will not operate, use or locate the Airframe or any Engine or Spare Engine, (I) in any area in which any insurance required to be maintained pursuant to Section 14 shall not be at the time in full force and effect, or in any area excluded from coverage by an insurance policy maintenance service program in effect with respect to the Airframe or such Engine or Spare Engine, except in the case of a requisition for use by the United States of America, and then only if Lessee obtains indemnity in lieu of such insurance from the United States of America against the risks and in the amounts required by said Section covering such area, or (II) in any recognized or threatened area of hostilities unless the Airframe or such Engine or Spare Engine is operated or used under contract with the Government of the United States of America under which contract that Government assumes liabilities for any damages, loss, destruction or failure to return possession of the Airframe or such Engine or Spare Engine at the end of the term of such contract and for injury to persons or damage to property of others. Lessee shall not use the Aircraft or any Spare Engine nor suffer it to be used in any manner or for any purpose excepted from any of the insurance on or in respect of the Aircraft or Spare Engine or for the purpose of carriage of goods of any description excepted from such insurance nor do, or permit to be done, anything which, or omit to do anything the omission of which, may invalidate any of such insuranceEngines.

Appears in 1 contract

Samples: Aircraft Lease (MPW Industrial Services Group Inc)

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