Buying an airplane is not a cheap investment, and many owners have to take out loans and mortgages in order to get the money to buy the plane in the first place. To make sure that their loans are fully secure, most lenders will require that the owner submit a type of document known as a plane security agreement. This is there to ensure that the lender gets the first benefits of the plane if you should declare bankruptcy, and is similar to the type of lien that you might receive if you take out a mortgage on a boat, for example. Understanding what this agreement means, and how it affects your loan, can allow you to decide whether or not you want this type of security with your mortgage.
Submitting Documentation
In order for the lending parties’’ interest in the plane to be secured, it is necessary for you to give a documented agreement to the Federal Aviation Administration. You will also need to have a full registry with the FAA, making the security agreement effective once it has been fully documented. This documentation serves as a notice to any third parties who might be interested in the financial situation of the plane and is there to benefit anyone who might have a claim against you for example if you were to go into bankruptcy.
Filing The Agreement
In order to ensure that the documentation is approved, you must complete an application form and submitted with the relevant evidence to the FAA. The form is available on the website, but you will still have to print out that paperwork and fill it in before mailing it to the administration along with an application fee. This might all seem a great deal of work for a mortgage, but it could be even more difficult if you don’t complete the form correctly at the first attempt. In that case, you will have to apply again, and also resubmit any documentation and the application fee. Failing to complete the form properly can be very expensive, and you may benefit from help and advice about how to finish the form, or even a third party to view the application and make sure that you have done everything correctly. If not, then you could really struggle to get your security agreement form accepted, which could lead to trouble with your mortgage.
Get Assistance With Your Application
We would always recommend that you seek help whenever you are filling in any application forms for the FAA. Application fees are so expensive, and are not returned, so it makes sense to get as much help as possible so that your plane security agreement documentation will be accepted as soon as possible. At the National Aviation Center, we can make sure that you get the very best advice about submitting your application. To get the advice you need, and for third-party checking of your application forms, send an inquiry message or contact us by calling 1 (800) 357-0893 now.