What Is Hell-or-High-Water Clause in Aircraft Leasing?
Hell-or-High-Water Clause defined for aviation professionals, with its operational or commercial use, document context and related terminology.
Definition and Operating Context
A hell-or-high-water clause requires the lessee to continue paying rent under an aircraft lease even when the aircraft is unavailable, damaged or subject to a dispute, subject to the contract and applicable law.
Aviation Glossary
Term: Hell-or-High-Water Clause
Category: Aircraft Leasing & Finance
Where the Term Appears
Hell-or-High-Water Clause can appear in aircraft leases, loan agreements, security documents, appraisals, insurance provisions or closing deliverables depending on the transaction. The exact legal effect comes from the executed documents, governing law and the role of each party.
How It Affects the Transaction
Lessors use the clause to preserve predictable debt service and rental cash flow. Lessees should read it together with casualty, insurance, maintenance, termination and lessor-default provisions.
What to Review
Read the definition together with payment mechanics, default provisions, insurance, maintenance, return conditions, security and enforcement rights. A familiar label can have a different economic effect when the drafting or calculation method changes.
Related Aviation Topics
Related ACMI World coverage includes key terms in aircraft leasing contracts, business jet leasing, aircraft acquisition financing, cross-border jet lease terms and aircraft valuation and LTV.
Lessors use the clause to preserve predictable debt service and rental cash flow. Lessees should read it together with casualty, insurance, maintenance, termination and lessor-default provisions.
Hell-or-High-Water Clause FAQ
What does Hell-or-High-Water Clause mean in aviation?
A hell-or-high-water clause requires the lessee to continue paying rent under an aircraft lease even when the aircraft is unavailable, damaged or subject to a dispute, subject to the contract and applicable law.
Why does Hell-or-High-Water Clause matter?
Lessors use the clause to preserve predictable debt service and rental cash flow. Lessees should read it together with casualty, insurance, maintenance, termination and lessor-default provisions.
Where would an aviation professional encounter Hell-or-High-Water Clause?
It is commonly encountered in aircraft leasing & finance documents, procedures, calculations or operating discussions where the underlying technical or commercial issue is relevant.
Does the term have the same meaning in every aircraft finance document?
No. Market terminology is useful shorthand, but the executed agreement controls. Defined terms, calculation methods, governing law and transaction structure can change the result.