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.
A Florida Security Agreement Granting Security Interest in Aircraft Engine refers to a legally binding contract that establishes a security interest in an aircraft engine located in Florida. This agreement allows a lender to secure their interest in the engine and ensure repayment of a debt or loan in case of default or breach of contract by the borrower. There are different types of Florida Security Agreements Granting Security Interest in Aircraft Engines, including: 1. Specific Aircraft Engine Security Agreement: This type of security agreement focuses solely on a particular aircraft engine. It outlines the terms and conditions of the loan or debt related to that specific engine, detailing the borrower's obligations and the lender's rights in case of non-payment or default. 2. Collateral Security Agreement: In this type of agreement, the security interest extends to multiple aircraft engines. This broadens the scope of the collateral and allows the lender to claim repayment from any of the designated engines in case of default. 3. Floating Lien Security Agreement: This type of security agreement is more flexible as it allows the lender to secure an interest in all existing and future aircraft engines owned by the borrower. The agreement defines the requirements and procedures for the lender to monitor and update the collateral list as new engines are acquired or existing ones are sold. A Florida Security Agreement Granting Security Interest in Aircraft Engine typically includes several key elements: 1. Identification of the parties: It clearly identifies the lender (secured party) and the borrower (debtor) involved in the transaction. 2. Description of the engine: A detailed and accurate description of the aircraft engine is provided, including its model, serial number, and any other distinguishing features. 3. Grant of security interest: The borrower grants a security interest to the lender in the aircraft engine as collateral for the debt or loan. 4. Terms and obligations: The agreement outlines the repayment terms, including the principal amount, interest rate, payment schedule, and any applicable fees or penalties. It also includes provisions regarding insurance, maintenance, and use of the engine. 5. Default and remedies: It describes the events that constitute default, such as non-payment, breach of contract, or insolvency. The agreement specifies the remedies available to the lender in case of default, including the right to repossess, sell, or lease the engine to recover the outstanding debt. 6. Governing law: The agreement specifies that the laws of the State of Florida govern the interpretation, validity, and enforcement of the security agreement. A Florida Security Agreement Granting Security Interest in Aircraft Engine is an essential legal document that protects the rights and interests of both lenders and borrowers involved in aircraft engine financing. It ensures that parties understand their obligations and provides a framework for resolving any disputes that may arise during the loan or debt repayment process.
