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1970 - December DOT Ord. & Dec. [1] (December, 1970)

handle is hein.usfed/dotod0653 and id is 1 raw text is: Order 70-12-122 UNITED STATES OF AMERICA CIVIL AERONAUTICS BOARD WASHINGTON, D.C. Issued under delegated authority December 21, 1970 Application of AMERICAN AIRLINES, INC. Docket 22895 for exemption from section 408 of the Federal Aviation Act. ORDER GRANTING EXEMPTION By application filed December 16, 1970, American Airlines, Inc. (American) requests that the Board grant it an exemption pursuant to section 416(b) of the Federal Aviation Act of 1958, as amended, (the Act) from section 408 thereof with respect to the lease, with option to purchase, of one Boeing 747-123 aircraft. Under the arrangement American will assign its purchase rights for the aircraft to Chase Manhattan Bank (National Association), which as Owner Trustee will pay the purchase price of the aircraft on delivery, take title and lease it to American for an 18-year term. The Owner Trustee will obtain the total amount required to pay the cost of the aircraft to it (Lessor's Cost). Thirty percent (30%) of such amount will be provided by the Owners as follows: New England Merchants National Bank, 10.43%; American Financial Corporation, 10.11%; The Provident Bank, 6.48%; The Athens National Bank, 2.61%; The Security Bank, 0.29%; and The New Richmond National Bank, 0.08%. The additional seventy percent (70%) will be provided through the sale to an interim lender (the Interim Lender) of loan certificates issued by the Owner Trustee and guaranteed by American (the Interim Certificates). The funds required to purchase the Interim Certificates will be obtained by the Interim Lender through the sale to Mellon National Bank and Trust Company (Mellon) of its non-recourse note due July 1, 1971, guaranteed by American (the Interim Note),and the Interim Lender will pledge the Interim Certificates with Mellon as security for the Interim Note. It is contemplated that long-term loan financing will subsequently be arranged through the sale, either by public offering or private placement, of loan certificates issued by the Owner Trustee and guaranteed by American (the Long-Term Certificates). The pro- ceeds of the sale of the Long-Term Certificates will be applied to pay

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