Delta Airlines 2006 Annual Report Download - page 259

“Indemnified Person” has the meaning ascribed to it in Section 1.11(a).
“Index Rate” means, for any day, a floating rate equal to the higher of (i) the rate publicly quoted from time to time by
The Wall Street Journalas the “prime rate” (or, if The Wall Street Journalceases quoting a prime rate, the highest per annum rate of interest published by the
Federal Reserve Board in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the Bank prime loan rate or its equivalent), and
(ii) the Federal Funds Rate plus50 basis points per annum. Each change in any interest rate provided for in the Agreement based upon the Index Rate shall
take effect at the time of such change in the Index Rate.
“Index Rate Loan” means a Loan or portion thereof bearing interest by reference to the Index Rate.
“Ineligible Refundable Ticket Accounts” means Accounts arising from the sale of refundable tickets that are to be used later than 30 days
from the date of issuance of such ticket.
“Ineligible Term A Borrowing Base Collateral” means any Aircraft, Engines, Tooling, Flight Simulators, Ground Service Equipment and
Spare Parts that:
(a) is not subject to a valid and enforceable first priority Lien on such Collateral (subject only to Permitted Encumbrances and
other Liens approved by the Administrative Agent) granted by the applicable Credit Party in favor of Administrative Agent for the benefit of the
Secured Parties pursuant to a Collateral Document;
(b) is not located on premises (i) leased by Credit Party or (ii) owned by Credit Party and subject to a valid and enforceable
first priority Mortgage in favor of Administrative Agent for the benefit of the Secured Parties pursuant to a Collateral Document;
(c) is placed on consignment, is in transit or out for repair, except for Collateral (other than Spare Parts) in transit between
domestic locations of Credit Parties as to which Liens of Administrative Agent for the benefit of the Secured Parties have been perfected at origin
and destination;
(d) is covered by a negotiable document of title, unless such document has been delivered to the Administrative Agent with all
necessary endorsements,
(e) is not of a type used in the ordinary course of Credit Parties’ business;
(f) as to which any of the representations or warranties pertaining to Collateral set forth in the Loan Documents are untrue;
(g) consists of Hazardous Materials or goods that can be transported or sold only with licenses that are not readily available;
(h) is not covered by casualty insurance required to be maintained under the Collateral Documents;
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