Common use of General Condition upon Return Clause in Contracts

General Condition upon Return. Unless an Event of Loss with respect to the Airframe shall have occurred, in which case Section 10.1 hereof shall apply, at the end of the Term, Lessee will return the Aircraft to Lessor by delivering the same to Kansas City or such other site as shall be mutually agreed between Lessee and Lessor (the "Redelivery Location"). All costs and expenses associated with the return of the Aircraft and compliance with this Section 5 shall be for the account of Lessee, except as otherwise expressly provided herein. At the time of such return, the Aircraft: (a) shall be in compliance with the terms of this Lease in such condition as qualifies it, without necessity of any repair, modification or maintenance for (i) immediate issuance of a current and valid certificate of airworthiness by, and registration with, the FAA, and (ii) immediate operation in the United States in full compliance with United States Federal Aviation Regulations Part 121; (b) shall have undergone, immediately prior to redelivery, the current phase of a C-Check as defined in the Maintenance Document in accordance with Maintenance Program and all inspections required under the Maintenance Document shall have been accomplished, and any deficiencies, including, without limitation, routine items, non-routine items and all corrosion, known prior to or revealed during such inspection will be corrected in accordance with manufacturer's limits, guidelines and specifications; (c) shall be free and clear of all Liens (except Lessor Liens); (d) shall be in the interior configuration providing seating for 140 passengers and in condition suitable for operation in and compatible with scheduled commercial airline passenger service in the United States, shall be clean by United States commercial airline standards with all Parts, systems and components operable and shall be in as good operating condition as when delivered to Lessee hereunder, ordinary wear and tear excepted, and the seats shall recline and the tray tables and ashtrays shall be installed; (e) shall have installed thereon all Engines and each such Engine has not less than 2,500 Flight Hours, 2,500 Cycles or one year (whichever is less) remaining to the next expected removal for a shop visit, and no Engine or module thereon shall be "on watch", subject to special or reduced inspection internals or exhibit any adverse trends or indicate a rate of acceleration in performance deterioration that is higher than normal based on Lessee's maintenance experience; (f) shall have had accomplished the ongoing corrosion prevention procedures set forth in the Maintenance Program; (g) shall be equipped with a full complement of Parts, accessories and equipment as delivered, and (i) each and every hour/cycle limited component or Part (including Life Limited Parts) shall have at least 2,500 Flight Hours or 2,500 Cycles remaining until the next expected shop visit or scheduled renewal under Maintenance Program, whichever is the more limiting factor, (ii) each and every calendar-limited component or Part shall have one year or one hundred percent of its total approved life remaining, whichever is less; and (iii) "on-condition" and "conditioned monitored" components shall be serviceable. (h) shall at the time of such return have no deferred maintenance items and shall be in compliance (without regard to permitted compliance extensions) with all regulations, mandatory maintenance directives, service bulletins, airworthiness directives and Federal Air Regulations or other instructions of the FAA or other United States governmental authorities having jurisdiction in each case that have an effective date for compliance prior to the Termination Date or falling due within twelve months (or the equivalent number of Flight Hours or Cycles based on Lessee's utilization for the prior twelve months) thereafter, and, in the event that any such directives, service bulletins, regulations or instructions require terminating action as the only option of compliance, Lessee shall have completed such termination action; and (i) shall have any markings of Lessee or any sublessee painted over in a workmanlike manner and the exterior shall be cleaned to U.S. commercial airline standards.

Appears in 2 contracts

Sources: Aircraft Lease Agreement (Airlease LTD), Aircraft Lease Agreement (Airlease LTD)

General Condition upon Return. Unless an Event Upon the expiration or termination of Loss with respect to the Airframe shall have occurred, in which case Section 10.1 hereof shall apply, at the end of the Termthis Lease, Lessee will return the Aircraft to Lessor or its designee at such location in the continental United States chosen by delivering the same to Kansas City or such other site as shall be mutually agreed between Lessee and reasonably satisfactory to Lessor, and Lessee will give to Lessor (and, if the "Redelivery Location")Aircraft is then subject to the Lien of the Mortgage, Mortgagee at least 15 days' prior written notice of the place of such return. All costs and expenses associated with At the time of return of the Aircraft to Lessor, Lessor and compliance with this Section 5 Lessee shall be for the account of Lessee, except as otherwise expressly provided hereinexecute a Return Acceptance Supplement. At the time of such return, (1) the Aircraft: Aircraft shall be registered with the FAA (aexcept for a failure caused by the Lessor being ineligible to be the registered owner of an aircraft registered with the FAA), (2) the Aircraft shall have and be in compliance with a currently-valid standard airworthiness certificate issued by the terms of this Lease in such condition as qualifies itFAA , without necessity of any repair, modification or maintenance for (i3) immediate issuance of a current and valid certificate of airworthiness by, and registration with, the FAA, and (ii) immediate operation in the United States in full compliance with United States Federal Aviation Regulations Part 121; (b) shall have undergone, immediately prior to redelivery, the current phase of a C-Check as defined in the Maintenance Document in accordance with Maintenance Program and all inspections required under the Maintenance Document shall have been accomplished, and any deficiencies, including, without limitation, routine items, non-routine items and all corrosion, known prior to or revealed during such inspection will be corrected in accordance with manufacturer's limits, guidelines and specifications; (c) Aircraft shall be free and clear of all Liens (except other than Lessor Liens); ) and rights of Persons not party to any Operative Agreement under pooling, interchange, overhaul, repair, or similar agreements or arrangements, (d4) shall be in the interior configuration providing seating for 140 passengers and in condition suitable for operation in and compatible with scheduled commercial airline passenger service in the United States, shall be clean by United States commercial airline standards with all Parts, systems and components operable and Aircraft shall be in as good operating condition as when originally delivered to Lessee hereunderLessee, ordinary wear and tear excepted, and be fully equipped with two Engines or other engines meeting the seats requirements of Replacement Engines, (5) the Aircraft shall recline have Lessee's logo removed or painted over and the tray tables and ashtrays shall be installed; clean by major United States commercial airline operating standards, (e6) the Aircraft will be in compliance with the maintenance provisions of the Lease, (7) the Aircraft shall have be returned in a passenger configuration with all Parts installed thereon all Engines and each such Engine has not less than 2,500 Flight Hourstherein as of the Delivery Date, 2,500 Cycles or one year (whichever is less) remaining to the next expected removal for a shop visitexcepting modifications, alterations, additions, replacements, substitutions, and no Engine or module thereon removals made in accordance with the terms of the Lease, (8) the Aircraft shall be "on watch", subject to special or reduced inspection internals or exhibit any adverse trends or indicate a rate of acceleration comply with the corrosion control program in performance deterioration that is higher than normal based on Lessee's maintenance experience; (f) shall have had accomplished the ongoing corrosion prevention procedures set forth in accordance with the Maintenance Program; (g) shall be equipped with a full complement of Parts, accessories and equipment as delivered, and (i9) each and every hour/cycle limited component the Aircraft shall comply with all outstanding Airworthiness Directives issued by the FAA applicable to the Aircraft that by their terms require compliance at or Part (including Life Limited Parts) shall have at least 2,500 Flight Hours or 2,500 Cycles remaining until the next expected shop visit or scheduled renewal under Maintenance Program, whichever is the more limiting factor, (ii) each and every calendar-limited component or Part shall have one year or one hundred percent of its total approved life remaining, whichever is less; and (iii) "on-condition" and "conditioned monitored" components shall be serviceable. (h) shall at before the time of such return have no deferred maintenance items and shall be in compliance (without regard to permitted compliance extensions) with all regulations, mandatory maintenance directives, service bulletins, airworthiness directives and Federal Air Regulations or other instructions of the FAA or other United States governmental authorities having jurisdiction in each case that have an effective date for compliance prior to the Termination Date or falling due within twelve months (or the equivalent number of Flight Hours or Cycles based on Lessee's utilization for the prior twelve months) thereafter, and, in the event that any such directives, service bulletins, regulations or instructions require terminating action as the only option of compliance, Lessee shall have completed such termination action; and (i) shall have any markings of Lessee or any sublessee painted over in a workmanlike manner and the exterior shall be cleaned to U.S. commercial airline standardsAircraft.

Appears in 1 contract

Sources: Note Purchase Agreement (Airtran Holdings Inc)