An aircraft security agreement is the typical form of a security document over an aircraft. It must be signed (or authenticated) by the parties to the agreement, contain a description of the collateral, and make clear that a security interest is intended. The aircraft security agreement seeks to create an interest in the airframe or engine and does not need to state a maximum secured amount, nor do the economic terms of the deal need to be recorded.
A security interest generally does not attach unless the grantor receives value for the security interest, the grantor has rights in the collateral (or the power to transfer the collateral to a secured party), and the grantor signs the security agreement.
Requirements For Creating A Security Interest
The security document must be filed with the aviation authority as a condition to its effective creation or perfection against the debtor and third parties. In this case, the aviation authority is the Federal Aviation Administration.
To create an aircraft security agreement, documentary formalities for the creation of an enforceable security interest in an aircraft or engine will depend on the applicable state law. To protect a party’s security interest against third parties, the secured party must record the security agreement with the Federal Aviation Administration. This process is called ‘perfecting’ the security interest.
The registration of the aircraft security agreement with the Federal Aviation Administration acts as notice to third parties and perfects a security interest. The agreement is effective against the parties to the agreement once the agreement has been fully executed, and allows a secured party to gain priority over third-party interests in the collateral.
How To Create An Aircraft Security Agreement
The form can be found on the website on the left part of the main page. You need to provide the personal information of who is creating the aircraft security agreement first. After that, you have to provide the name, physical address, and email of the debtor, the security party (or assignor), and the assignee.
Next comes the aircraft information. Inform its N-Number, manufacturer, model, and serial number. Specify the engine’s and propeller’s data, as well as the spare parts’ location. Add any additional information like the bearing date or installment. Finally, proceed with the payment. The application costs $125.
All The Forms You Need In The Same Place
The National Aviation Center provides every single aircraft documentation to get your paperwork done. You no longer have to deal with the old hassle of spending hours looking for forms on the internet and getting your papers rejected for a little misspell.
If you still have any questions regarding an aircraft security agreement, feel free to contact us at any time. We’ll be glad to help you.