Until a conveyance, lease, or instrument executed for security purposes which may be recorded under ??? 44107(a)(1) or (2) has been filed with the FAA, it is valid only against the parties to the instrument and individuals and entities who have actual knowledge of the instrument. Therefore, the interests of the parties to a transaction, including purchasers, lessor, lessees and secured parties, are not perfected until the instruments creating those interests have been filed with the FAA.
A Mississippi Security Agreement Regarding Aircraft and Equipment is a legal document that establishes a security interest in an aircraft or equipment located in Mississippi. This agreement is governed by the Uniform Commercial Code (UCC) Article 9, which aims to provide a framework for secured transactions. This type of agreement allows a lender or creditor to claim a security interest in the aircraft or equipment as collateral to secure a loan or any other financial obligation. By doing so, the lender gains the legal right to repossess and sell the designated aircraft or equipment if the borrower defaults on their loan payments or fails to meet their obligations. There are a few different types of Mississippi Security Agreements Regarding Aircraft and Equipment based on specific circumstances: 1. Purchase Money Security Agreement (PSI): A PSI is created when the lender provides funds used specifically for purchasing the aircraft or equipment. This type of agreement grants the lender a higher priority position over other creditors, ensuring that they can recover their investment first in case of default. 2. Non-Purchase Money Security Agreement: In this agreement, the lender provides the borrower with funds that are not directly used for purchasing the aircraft or equipment. Creditors who hold this agreement have a security interest but with a lower priority compared to PSI holders. 3. Consignment Agreements: These agreements take place when the owner of the aircraft or equipment transfers them to another party for the purpose of selling or leasing. The agreement includes terms ensuring that the consignor's interest is protected and that the consignee (lender) follows specific requirements before taking any actions. When drafting a Mississippi Security Agreement Regarding Aircraft and Equipment, several essential details should be included: A. Identifying Information: The agreement should contain the names, addresses, and contact information of both the borrower and lender. B. Description of Collateral: A detailed description of the aircraft or equipment should be provided, including make, model, serial numbers, and any unique identifiers. C. Granting Clause: This section explicitly states that the borrower grants a security interest in the collateral to the lender. D. Obligations: Clearly define the obligations of the borrower, including repayment terms, interest rates, and any other financial or performance-related conditions. E. Default and Remedies: Detail the consequences of a default, including the lender's rights to repossess or sell the collateral, along with any notice requirements. F. Governing Law and Jurisdiction: Specify that the agreement falls under Mississippi law and identify the applicable courts if any legal disputes arise. G. Signatures: Both parties must sign the agreement to acknowledge their consent and acceptance of the terms. In conclusion, a Mississippi Security Agreement Regarding Aircraft and Equipment is a legal contract that establishes a creditor's security interest in an aircraft or equipment as collateral. Different types of agreements include Purchase Money Security Agreements, Non-Purchase Money Security Agreements, and Consignment Agreements. Carefully drafting this agreement is crucial to ensure clarity, protect the interests of both parties, and comply with Mississippi's laws and regulations regarding secured transactions.
