Common use of Automatic Release Clause in Contracts

Automatic Release. (a) Upon the occurrence of the Separation Date, (i) the Guaranties provided by the Separation Date Guarantors will automatically be released and (ii) the security interest granted hereunder and/or under any Other Document by the Separation Date Guarantors will automatically be released, including all such Liens in favor of, or held by, the Agent, and, in each case, each of the Lenders hereby consents to each such release and authorizes the Agent to take all such actions reasonably necessary to give effect to each such release. (b) Upon (i) the Disposition of any Collateral (including Aircraft Collateral, or other assets subject to the Agent’s Lien that do not necessarily constitute Collateral hereunder) permitted to be Disposed pursuant to Section 7.1(b) or (ii) any Aircraft Collateral (or other assets subject to the Agent’s Lien that do not necessarily constitute Aircraft Collateral hereunder) becomes (x) subject to a Permitted Encumbrance relating to Permitted Indebtedness incurred pursuant to any of clauses (k) or (o) of the definition of Permitted Indebtedness or (y) Excluded Property, in either case of clause (i) or (ii) and subject to satisfaction of any required conditions to such Disposition with respect clause (i) (if any), the Lien securing the Obligation hereunder in favor of the Agent with respect to such Collateral shall automatically be released and each of the Lenders hereby consents to such release and authorizes the Agent to take all such actions reasonably necessary to give effect to such release and the Agent shall reasonably cooperate to effectuate, or reflect of public record, the release and discharge of such security interests.