Like other assets you might own, your plane can be used as collateral in loans, deals, agreements, and the like. However, since this one in particular is registered with the Federal Aviation Administration it will be a good idea to document every claim over the plane in an official capacity. This will be what a plane security agreement is ultimately for. This document, if properly filed with the Federal Aviation Administration, can provide a plane owner, as well as all the other parties involved with the agreement, with a reliable form of security.
What is a Plane Security Agreement?
When it comes to establishing aircraft and its related equipment as collateral in a deal, it’s necessary to have a plane security agreement in place. This official document can be submitted to the Federal Aviation Administration in order to receive an official Conveyance Recordation Notice. This document can properly describe the aircraft, as well as the engines, propellers, and locations if included, list the parties and date of the security agreement, and show the FAA recording number and the date of recordation. This document 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 Does a Security Agreement Do?
For a plane security agreement to be valid, it will have to include specific information about the parties involved. Let’s go over the information that must be provided throughout this process.
- The agreement has to state the names of the parties subjected to the agreement.
- It has to state that the aircraft owner is granting the secured party a security interest in the collateral.
- It will have 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.
- Additionally, the security agreement has to include a recording fee for each item of the collateral (including the aircraft, the engines, the propellers, or locations involved), which has to be made payable to the Federal Aviation Administration.
Certifying the Agreement
So, now that you know what a plane security agreement will entail, how should you submit it? It’s pretty easy! You can find the form that you need to fill out right here on our website, where you can also submit it to the Federal Aviation Administration. You will soon receive an official Conveyance Recordation Notice.
Get Your Security Agreement
Your aircraft documentation will be very important to keep in mind at all times in order to make sure that you are flying in order. Whether you need to submit a form or get a plane security agreement, you can do so conveniently through our website. And, should you need any help filling out or submitting the forms, you can just give us a call at 1-800-357-0893 or email us at info@nationalaviationcenter.us. You can always rely on our team here at the National Aviation Center to help you take care of your civil aircraft register forms.