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.
Title: Oklahoma Security Agreement Granting Security Interest in Aircraft Engine: Explained Introduction: In Oklahoma, a Security Agreement Granting Security Interest in Aircraft Engine is a legally binding document that establishes the security interest of a lender in an aircraft engine. This agreement ensures that the lender has a right to repossess the engine in case of default by the borrower. This article will provide a detailed description of the Oklahoma Security Agreement, its significance, and the different types of agreements available. Keywords: — Oklahoma SecuritAgreementen— - Granting Security Interest — AircrafEnginein— - Lender - Borrower - Repossession — Default Detailed Description: 1. Purpose: The purpose of an Oklahoma Security Agreement is to secure the rights of the lender who provides financing for an aircraft engine. By entering into this agreement, the borrower agrees to offer the aircraft engine as collateral, thus granting a security interest to the lender. In the event of non-payment or default, the lender has the right to repossess the engine and sell it to recover the outstanding debt. 2. Types of Oklahoma Security Agreements for Aircraft Engines: a. Individual Security Agreement: This type of agreement is signed between an individual borrower and a lender. It outlines the terms and conditions under which the lender provides financing for the aircraft engine. b. Business Security Agreement: This agreement is designed for borrowers who are businesses or corporate entities. It entails specific terms and provisions based on the commercial nature of the transaction. c. Multiple Creditor Security Agreement: In some cases, multiple lenders may be involved in financing the aircraft engine. This agreement is used to establish the priority of their security interests and determine the order in which they would be repaid if the engine is repossessed and sold. 3. Contents of the Agreement: A typical Oklahoma Security Agreement for an aircraft engine would include the following key elements: a. Identification: The agreement identifies both the borrower and the lender, along with their contact information. b. Description of the Aircraft Engine: It provides detailed information about the engine, including its make, model, serial number, and any relevant documentation. c. Grant of Security Interest: The borrower grants a security interest in the aircraft engine to the lender. This section outlines the conditions and terms of the agreement. d. Obligations and Covenants: It defines the responsibilities of both parties, including payment terms, maintenance requirements, and insurance obligations. e. Default and Repossession: It outlines the specific circumstances that constitute default, such as failure to make payments or breach of other terms. This section also outlines the lender's rights to repossess the engine and sell it to recover the debt. f. Governing Law: The agreement specifies that it is governed by the laws of the state of Oklahoma. Conclusion: The Oklahoma Security Agreement Granting Security Interest in Aircraft Engine is crucial for protecting the lender's stake and ensuring that the borrower fulfills their obligations. By understanding the different types of agreements and their purposes, both lenders and borrowers can establish a secure aircraft engine financing arrangement tailored to their needs.
