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.
North Carolina Security Agreement Regarding Aircraft and Equipment is a legal contract that establishes a security interest in aircraft and related equipment as collateral for a loan or other financial transaction. This agreement ensures that the lender or creditor holds a priority position on the aircraft and equipment in case of default or non-payment. It is a crucial document in protecting the lender's rights and interests. Keywords: North Carolina, Security Agreement, Aircraft, Equipment, collateral, loan, financial transaction, lender, creditor, priority, default, non-payment, rights, interests. There are different types of North Carolina Security Agreements Regarding Aircraft and Equipment based on specific circumstances or purposes: 1. Commercial Security Agreement: This type of agreement is often used in commercial aviation for loans or leases where businesses can secure their loans by pledging their aircraft and equipment as collateral. 2. Private Security Agreement: Individuals who own private aircraft can enter into this type of agreement to secure financing for aircraft upgrades, repairs, or personal use. It enables them to use their aircraft as collateral and access funds. 3. Conditional Sales Agreement: In this agreement, the lender retains ownership of the aircraft and related equipment until the borrower pays off the loan in full. Once the loan is repaid, the ownership is transferred to the borrower. 4. Lease Agreement with Security Interest: This agreement is typically used when the aircraft and related equipment are leased, and the lessor wants to secure their interest in case of default or non-payment by the lessee. It grants the lessor a security interest in the aircraft and equipment. 5. Equipment Financing Agreement: This type of agreement applies when the emphasis is on financing the specific equipment, such as avionics, engines, or other parts. The lender or creditor holds the security interest in the equipment until the loan is satisfied. 6. Aircraft Purchase Money Security Agreement: This agreement is commonly used during the purchase of an aircraft, where the lender provides funds to the borrower to acquire the aircraft, and the lender retains a security interest until the loan is fulfilled. Regardless of the specific type, a North Carolina Security Agreement Regarding Aircraft and Equipment is essential for lenders and creditors to protect their investment. It ensures that they have the legal right to repossess and sell the collateral in case the borrower defaults on their financial obligations, providing a level of security and confidence in the lending process.
