Common use of Event of Loss with Respect to a Spare Part Clause in Contracts

Event of Loss with Respect to a Spare Part. (i) Upon the occurrence of an event or circumstance which constitutes an Event of Loss (or an event or circumstance which, with the passage of time, would constitute an Event of Loss) with respect to one (1) or more Spare Parts, the aggregate value of which exceeds $5,000,000, Grantors shall forthwith (and in any event within ten (10) days after such occurrence) give the Collateral Agent written notice thereof and, to the extent required by Section 2.12(a) of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 2.10(a) of the Credit Agreement) (all calculations under Section 6.06 of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 6.06 of the Credit Agreement) to be performed after giving effect to such Event of Loss and otherwise in accordance with the Credit Agreement), deposit all Net Cash Proceeds thereof, if any, received by a Grantor (and not paid directly by an insurer to the Administrative Agent pursuant to a loss payee clause as provided in Section 2.03 hereof or to the First Lien Administrative Agent as provided in Section 2.03 of the First Lien Aircraft Mortgage) within 3 Business Days after receipt thereof into an account with First Lien Administrative Agent maintained pursuant to Section 2.12(a) the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, the Administrative Agent pursuant to Section 2.10(a) of the Credit Agreement) and subject to a Full Control Agreement. The applicable Grantor may use Net Cash Proceeds held by the Administrative Agent (including Net Cash Proceeds in the form of insurance proceeds paid directly by an insurer to the Administrative Agent as aforesaid) to, as soon as reasonably possible, replace the Spare Part which suffered such Event of Loss in accordance with this Section 3.01(c), but subject to the provisions of Section 2.12(a) and any other applicable provisions of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 2.10(a) and any other applicable provisions of the Credit Agreement). Upon such application of any Net Cash Proceeds, the applicable Grantor shall substitute spare part(s) (reasonably satisfactory to the Appraisers), free and clear of all Liens (other than Permitted Encumbrances) and cause the same to be subjected to the Lien of this Mortgage.

Event of Loss with Respect to a Spare Part. (i) Upon the occurrence of an event or circumstance which constitutes an Event of Loss (or an event or circumstance which, with the passage of time, would constitute an Event of Loss) with respect to one (1) or more Spare Parts, the aggregate value of which exceeds $5,000,000, Grantors shall forthwith (and in any event within ten (10) days after such occurrence) give the Collateral Agent written notice thereof and, to the extent required by Section 2.12(a) of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 2.10(a) of the Credit Agreement) (all calculations under Section 6.06 of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 6.06 of the Credit Agreement) to be performed after giving effect to such Event of Loss and otherwise in accordance with the Credit Agreement), deposit all Net Cash Proceeds thereof, if any, received by a Grantor (and not paid directly by an insurer to the Administrative Agent pursuant to a loss payee clause as provided in Section 2.03 hereof or to the First Lien Administrative Agent as provided in Section 2.03 of the First Lien Aircraft Mortgagehereof) within 3 Business Days after receipt thereof into an account with First Lien Administrative Agent maintained pursuant to Section 2.12(a) the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, the Administrative Agent pursuant to Section 2.10(a) of the Credit Agreement) and subject to a Full Control Agreement pursuant to Section 2.12(a) of the Credit Agreement. The applicable Grantor may use Net Cash Proceeds held by the Administrative Agent (including Net Cash Proceeds in the form of insurance proceeds paid directly by an insurer to the Administrative Agent as aforesaid) to, as soon as reasonably possible, replace the Spare Part which suffered such Event of Loss in accordance with this Section 3.01(c), but subject to the provisions of Section 2.12(a) and any other applicable provisions of the First Lien Credit Agreement (or, after the First Priority Obligations Payment Date, Section 2.10(a) and any other applicable provisions of the Credit Agreement). Upon such application of any Net Cash Proceeds, the applicable Grantor shall substitute spare part(s) (reasonably satisfactory to the Appraisers), free and clear of all Liens (other than Permitted Encumbrances) and cause the same to be subjected to the Lien of this Mortgage.