Your aircraft, just like similar high value belongings, can be used as collateral as part of loans, deals, and agreements, but since it’s registered with the Federal Aviation Administration, it’s always a good idea to make sure that each claim over the aircraft is documented in an official capacity. This is what a private security agreement is for. This, when made official by the FAA, can provide an aircraft owner, as well as other parties involved in the agreement, with a form of security in and of itself.
Aircraft Private Security Agreement
In order to establish aircraft and related equipment as collateral, there needs to be a private security agreement in place. This official document can be submitted to the Federal Aviation Administration in order to receive an official Conveyance Recordation Notice, which will describe the aircraft (as well as engines, propellers, and locations if included), list the parties and date of the security agreement, and show the FAA recording number as well as the date of recordation. This can be used as a release if the secured party signs it and returns it to the Aircraft Registration Branch. Another acceptable release can be a letter signed by the secured party in which the same information is outlined along with a statement releasing all the secured party’s rights and interest in the collateral.
What Must a Security Agreement Do?
In order for an airplane security agreement to be valid, it will have to include specific information about those involved. Here is a quick breakdown of the information that must be provided as part of the process.
- The agreement must state the names of the parties to the agreement
- It must state that the aircraft owner grants the secured party a security interest in the collateral
- It has to identify the collateral with the manufacturer name, model designation, serial number, and N-number
- The agreement will have to contain the ink signatures of the debtors / aircraft owners showing the signer’s title as appropriate
- Lastly, it will have to include a recording fee for each item of the collateral (meaning aircraft, engine, propeller, or location), which will have to be made payable to the Federal Aviation Administration
Submitting the Agreement
So, now that you know what exactly a private security agreement has to include, how do you submit it? Well, easy. You will find the form to fill out and create the agreement here on our website, readily available on our sidebar menu. Once it’s ready, we can make sure everything is in order so that you don’t experience any delays and submit it to the Federal Aviation Administration. You will soon receive an official Conveyance Recordation Notice.
File Applications With the FAA
Aircraft documentation, due to all the requirements of the Federal Aviation Administration, can be confusing to navigate for a lot of people. However, it doesn’t have to be that challenging when you have the help of the National Aviation Center. Our platform is set up for you to not only find all the forms you might need, but also fill them out and submit them directly to the FAA. On top of that, you can also count on our team to help you through your application process. If you have any doubts or questions, you can reach out to us by way of our contact page. The National Aviation Center is here to help you.