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 North Carolina Security Agreement Granting Security Interest in Aircraft Engine is a legally binding contract that establishes a security interest in an aircraft engine located in North Carolina. It provides a lender or creditor with a guarantee or claim on the engine as collateral in case the borrower or debtor defaults on the loan or fails to meet their obligations. This type of agreement falls under the category of security agreements and is crucial in situations where lenders or creditors need additional assurance of repayment in high-value transactions related to aircraft engines. By granting a security interest, the lender can secure its investment and have a legal right to repossess or sell the engine to recover the outstanding debt if the borrower defaults. Keywords: North Carolina, security agreement, granting security interest, aircraft engine, collateral, lender, creditor, loan, debtor, default, obligations, repayment, high-value transactions, investment, repossession, sell, outstanding debt. Different types of North Carolina Security Agreement Granting Security Interest in Aircraft Engine may include: 1. Purchase Money Security Agreement (PSA): It is a type of security agreement where the lender provides financing to the borrower for the specific purpose of purchasing the aircraft engine. The PSA establishes the lender's security interest in the engine as collateral to secure the loan. 2. Floating Lien Agreement: This type of security agreement allows the lender to claim a security interest in the aircraft engine and other movable collateral owned by the borrower. The agreement covers a range of assets, and the specific aircraft engine is included in the collateral pool. 3. Single Engine Security Agreement: In cases where a borrower owns multiple aircraft engines, a single engine security agreement can be used to establish a security interest in one specific engine. This allows lenders to focus on a particular asset rather than the entire collateral pool. 4. Master Security Agreement: A master security agreement serves as a comprehensive framework that governs multiple security interests granted by the borrower to the lender. It establishes the relationship between the parties involved and provides a standardized set of terms and conditions for securing various aircraft engines. 5. Installment Sales Security Agreement: This type of agreement is used when the purchase of an aircraft engine is financed through installment payments. The lender retains a security interest in the engine until the final payment is made, ensuring that the borrower fulfills their repayment obligations. Keywords: Purchase Money Security Agreement (PSA), floating lien agreement, single engine security agreement, master security agreement, installment sales security agreement, lender, borrower, movable collateral, assets, repayment obligations.
