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 Maryland Security Agreement Granting Security Interest in an Aircraft Engine is a legal document used to establish a secured interest in an aircraft engine located in the state of Maryland. It is a valuable tool for lenders or creditors to protect their financial interests in the event of default by the borrower. With this agreement, the lender is granted a security interest in the aircraft engine, which serves as collateral for the loan or debt secured. The document outlines the specific terms and conditions of the agreement, including the names and contact information of both parties involved, the description of the aircraft engine, and the specific obligations and responsibilities of each party. Certain types of Maryland Security Agreements Granting Security Interest in Aircraft Engines include: 1. Traditional Security Agreement: This is the most common type of agreement where both parties agree to the terms and conditions outlined in the agreement, including the lender's right to repossess or sell the aircraft engine in the event of default by the borrower. 2. Chattel Mortgage: In this type of agreement, the borrower provides the aircraft engine as collateral for the loan, and the lender retains ownership until the loan is fully repaid. Once the borrower completes the repayment, the ownership of the aircraft engine is transferred back to them. 3. Conditional Sales Contract: This type of agreement allows the borrower to use and possess the aircraft engine while making installment payments to the lender. Once all payments are complete, the ownership is automatically transferred to the borrower. 4. Security Interest Assignment: With this agreement, the borrower assigns a security interest in the aircraft engine to the lender. It grants the lender the right to seize and sell the asset to recover the outstanding debt in case of default. 5. UCC-1 Financing Statement: In addition to the security agreement, the lender may file a UCC-1 financing statement with the Maryland Secretary of State. This statement serves as public notice of the lender's security interest and helps establish priority in case multiple creditors claim security interests in the aircraft engine. Maryland Security Agreements Granting Security Interest in Aircraft Engines are essential documents for lenders and borrowers in securing financial transactions involving aircraft engines. These agreements protect the rights and interests of both parties and ensure a fair and transparent relationship throughout the lending process.
