The typical form of a safety document over an aircraft is usually referred to as a safety agreement, mortgage or trust agreement. Although there is no specific form, these agreements must be signed (or certified) by the parties to the agreement, contain a description of the guarantees and specify that a security interest is being considered. As a general rule, agreements generate interest in the airframe or engine. Agreements are not required to indicate a guaranteed ceiling and the economic conditions of the agreement should not be recorded. For aircraft registered outside the United States that are not subject to other provisions of the Cape Town Agreement, U.S. courts will recognize security interests established in accordance with the laws of the country of registration as long as the registration country has a centralized reporting system and the security agreement is duly executed and registered in accordance with that reporting system. In order to protect the safety interest of a party against third parties, the insured party must register the security agreement with the FAA and, if the aircraft is subject to the jurisdiction of the Cape Town Convention, register an international interest with the International Register. Should the security document be filed with the authority or other registry against the debtor and a third party as a precondition for its actual establishment or perfection? Summarize the process of registering a mortgage premium. How is the registration of a security interest confirmed? WARNING: Try to keep your search for a plane close to home. If a problem occurs after the sale, you may not find the remote seller as willing to help you as someone near the house. The purchase of an aircraft is an important commitment that must be treated with care and caution, especially when purchasing a used aircraft.
For many aircraft owners, this is the largest individual investment in addition to buying a home. Often, the purchase price of an airplane is about or above the price of a new home. In particular, a creditor becomes an insured party only when the interest of security is “attached”. In accordance with Article 9 of the UCC, security interest is generally not added unless the funder receives value for the guarantees, the donor has security rights (or the power to transfer the guarantees to a secure party) and the donor signs the security agreement. When the FFA receives the recorded security statement, it returns to the party a conveyance registration notice (AC FORM 8050-41). This notice describes the aircraft (including propellers, engines and sites) and lists the parts and dates of the agreement.