Your aircraft, just like similar 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 an airplane security agreement is for. This document, 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.
The Airplane Security Agreement Explained
In order to establish aircraft and related equipment as collateral, there needs to be an airplane 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 interests 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 an airplane 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.
National Aviation Center
When it comes to submitting an application regarding an aircraft security agreement, or just about any form related to your aircraft application, we are here to help. Here at the National Aviation Center, our team can help you submit every form related to your aircraft registration. Any questions? Give us a call at 1-800-357-0893 or email us at info@nationalaviationcenter.us.