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 Missouri Security Agreement Granting Security Interest in Aircraft Engine is a legal document that establishes a lien on an aircraft engine as collateral for a loan or debt. This agreement is specific to the state of Missouri and ensures the lender's rights in case of default or insolvency. Under Missouri law, there are different types of security agreements for granting security interest in aircraft engines. These include: 1. Specific Security Agreement: This type of agreement is used when a lender wants to establish a security interest solely in a particular aircraft engine. It specifies the identification of the engine, its serial number, model, and other relevant details. 2. Floating Security Agreement: A floating security agreement allows a lender to secure an interest in any aircraft engine owned by the debtor at the time of default. It provides flexibility as it covers all present and future engines owned by the debtor within a specified period. 3. PSI Security Agreement: A Purchase Money Security Interest (PSI) Agreement is used when the lender finances the purchase of an aircraft engine. It gives the lender priority over other creditors, ensuring that they will be paid first in case of default. 4. Subordinate Security Agreement: This type of agreement is entered into when the lender agrees to take a secondary position to another lender who has an existing security interest in the same aircraft engine. In case of default, the primary lender will be paid first, and the subordinate lender will receive payment later. In Missouri, the security agreement must be in writing and signed by both the lender (secured party) and the borrower (debtor). It is essential to include accurate and detailed information about the aircraft engine to establish a valid security interest. Keywords: Missouri, security agreement, granting security interest, aircraft engine, lien, collateral, legal document, debtor, lender, default, insolvency, specific security agreement, floating security agreement, PSI security agreement, subordinate security agreement, written agreement, signed agreement.
