Common use of Record Keeping and Reporting Requirements Clause in Contracts

Record Keeping and Reporting Requirements. (a) The Borrower agrees to keep true records and books of account in which entries will be made in accordance with Generally Accepted Accounting Principles for the airlines industry as set forth in applicable guidelines of the Financial Standards Board ("FASB") consistently applied and will maintain accounts and reserves adequate in the opinion of the management of the Borrower, for all taxes (including income taxes), all depreciation, depletion, obsolescence and amortization of its properties, all other contingencies, and all other proper reserves. (b) The Borrower shall furnish to the Servicing Agent: (i) within 120 days of the end of each fiscal year (commencing with the fiscal year ended August 31, 1995) the balance sheet of the Borrower, as at the end of such fiscal year and the related statements of income, stockholders' equity and changes in financial position of each of the Borrower as at the end of such fiscal year, accompanied in each case by the report or audit of Deloitte & Touche or, if they cease to be the auditors of the Borrower, other independent certified public accountants of recognized national standing, together with a certification of such accountants to the effect that such financial statements have been prepared in accordance with Generally Accepted Accounting Principles and FASB guidelines applied on a basis consistent with prior years (except as to changes described therein with which such accountants concur) and fairly present the respective financial conditions of the Borrower at the dates thereof and the results of its operations and changes in financial position for the periods covered thereby. In addition, such financial statements of the Borrower shall be accompanied by (A) the statement of such accountants that they have caused the provisions of this Agreement and the other Loan Documents to be reviewed and that in the course of their audit of the Borrower nothing has come to their attention to lead them to believe that any Default hereunder exists and in particular that they have no knowledge of any Default under the provisions of Sections 16(c), (d) or (f) hereof, or, if such is not the case, specifying such Default or possible Default and the nature thereof, it being understood that the examination of such accountants cannot be relied upon to give them knowledge of any such Default except as it relates to accounting or auditing matters, (B) computations by the Borrower demonstrating, as of the close of such fiscal year, compliance with Sections 16(c), (d) or (f) hereof, and (C) the certificate of the President, Chief Financial Officer or other officer approved in advance by the Servicing Agent of the Borrower,that such officer has caused the provisions of this Agreement to be reviewed and has no knowledge of any Default, or if any such officer has such knowledge, specifying such Default, and the nature thereof, and what action the Borrower has taken, is taking or proposes to take with respect thereto; (ii) within 45 days after the end of the first three fiscal quarters of each fiscal year of the Borrower, the balance sheet of the Borrower as of the end of such quarter and the related statements of Net Income, stockholders' equity and changes in financial position for