Awg Novation Agreement

However, economic incentives are less clear to the tenant and the costs and disadvantages of innovation are likely to have no immediate economic benefit. The main reason why tenants cooperate is that (1) is implicitly recognized that leasing innovations are part of the aircraft leasing business model (2), given that both a matter of reputation and business, there is considerable goodwill in the relationship with the lessor, and tenants naturally wish to stay on track with the lease. and (3) legally, they are required to do so under the terms of the lease. With regard to the negotiation of the innovation agreement, it should first be noted that it is usually the outgoing lender who prepares the first draft innovation agreement, which first agreed the form with the incoming lessor, and then made it available to the taker for verification and advice. Second, any innovation raises a number of business concerns for the lessor. First of all, it may never have dealt with the new owner, but on the other hand, it may have a good long-established relationship with the outgoing owner and has built considerable goodwill with that owner. As a result of innovation, he can now have a new business relationship to manage. Not only that, but will the new owner have the same level of expertise and experience in business, technology and maintenance? Will the tenant be able to retrieve the phone and solve all problems in the same way with the new owner? Will the new owner be less flexible with regard to operational and maintenance issues that require the owner`s consent? This method creates a simple, consistent and streamlined negotiation process that allows owners of economic and financial interests in an electronic system to clearly register their ownership or security interest in economic interest rates and avoid the need for documentation to finance leasing innovations, reducing the time, money and burden on airlines. , donors and financiers.

In this context, the Pvereten should be guided by three principles when negotiating the innovation agreement. First, the divestment provisions of the lease agreement must set the limit of what the taker must provide or agree to in the strictly legal sense of the term (at least without justification for departing from these provisions).