A security interest in an aircraft engine can be perfected only in the manner required by federal law. Federal law excludes by preemption the recording of title to or liens against aircraft, so that a transfer that is not recorded under the federal system is not effective. Security Interests in Engines less than 550 horsepower are not eligible for recording. A security interest in an aircraft is perfected by filing with the Aircraft Registration Branch of the Federal Aviation Administration.
Title: Understanding the Idaho Security Agreement Granting Security Interest in Aircraft Engine Keywords: Idaho security agreement, granting security interest, aircraft engine, types Description: The Idaho Security Agreement Granting Security Interest in Aircraft Engine is a legal document that outlines the terms and conditions under which a security interest in an aircraft engine can be granted to secure a loan or debt. This agreement serves to protect the rights of both the debtor and the creditor involved in the transaction. Types of Idaho Security Agreement Granting Security Interest in Aircraft Engine: 1. General Security Agreement: The general security agreement is the most common type, where the debtor grants a security interest in the aircraft engine as collateral for a loan. This type of agreement allows the creditor to seize and sell the aircraft engine in the event of default or non-payment. 2. Specific Security Agreement: In a specific security agreement, the debtor grants a security interest in a particular aircraft engine to secure a specific debt. This agreement is more limited in scope as it pertains to a specific engine rather than all engines owned by the debtor. 3. Floating Security Agreement: A floating security agreement grants a security interest in aircraft engines that may change from time to time. It offers flexibility to the debtor as they can replace engines, sell them, or acquire new ones without having to modify the agreement. The agreement covers the current and future engines owned by the debtor. Key Elements of the Idaho Security Agreement Granting Security Interest in Aircraft Engine: 1. Parties Involved: The agreement identifies the debtor (borrower) and the creditor (lender) by their legal names and provides their contact details. 2. Description of the Aircraft Engine: The document includes a detailed description of the aircraft engine, including its make, model, serial number, and any relevant identifying information. 3. Granting Security Interest: The agreement clearly states that the debtor is granting a security interest in the aircraft engine to the creditor as collateral to secure the loan or debt. 4. Debtor's Representations and Warranties: The debtor provides assurances that they are the legal owner of the engine, have the right to grant a security interest, and that there are no other liens or encumbrances on the engine. 5. Rights and Remedies of the Creditor: The agreement outlines the rights and remedies available to the creditor in case of default, including the ability to repossess, sell, or auction the aircraft engine to recover the debt owed. 6. Governing Law and Jurisdiction: The agreement specifies that Idaho law governs the interpretation and enforcement of the agreement and designates a specific jurisdiction for any legal proceedings related to the agreement. In conclusion, the Idaho Security Agreement Granting Security Interest in Aircraft Engine is a crucial document that ensures the protection of both the debtor and creditor's interests. By granting a security interest in an aircraft engine, debtors can secure loans while creditors gain reassurance of repayment through a tangible asset.
