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: Understanding the Oregon Security Agreement Granting Security Interest in Aircraft Engine Keywords: Oregon Security Agreement, Security Interest, Aircraft Engine, Enforcement, Types Introduction: The Oregon Security Agreement Granting Security Interest in Aircraft Engine is a legally binding document that establishes a security interest in an aircraft engine. This agreement ensures that the creditor has priority in recovering their investment in the event of default or non-payment by the debtor. Let's delve into the details of this agreement and explore any possible variations. 1. Key Elements of the Oregon Security Agreement: The Oregon Security Agreement consists of several essential components, including: a. Identification of Parties: It includes the names and contact information of both the debtor (borrower) and the creditor (lender). b. Aircraft Engine Description: Detailed identification and description of the aircraft engine that will serve as collateral for the secured debt. c. Grant of Security Interest: The debtor grants a security interest in the aircraft engine to the creditor to secure the debt or obligations. d. Default and Remedies: Outlines the specific events that constitute a default and the actions the creditor can take to enforce their security interest. e. Governing Law: Specifies that the agreement will be governed by Oregon law. 2. Variations of the Oregon Security Agreement: a. Oregon Security Agreement Granting Security Interest in Aircraft Engine (First Priority): This agreement grants the creditor the first priority over other creditors in case of default. It ensures that the lender has the highest claim on the aircraft engine. b. Oregon Security Agreement Granting Security Interest in Aircraft Engine (Subordinate): In this variation, the creditor's security interest ranks lower in priority compared to other secured parties. This means that if the debtor defaults, other lenders with higher priority will be paid first. c. Oregon Security Agreement Granting Security Interest in Multiple Aircraft Engines: This agreement covers situations where the debtor grants security interest in more than one aircraft engine. d. Oregon Security Agreement Granting Security Interest in Aircraft Engine (Partial): This type of agreement allows the debtor to grant a security interest in a specific portion or percentage of an aircraft engine. 3. Enforcing the Oregon Security Agreement: If the debtor defaults on their obligations, the creditor can enforce their security interest in following legal procedures outlined in the agreement. These may include repossession, judicial foreclosure, or sale of the aircraft engine to recover the outstanding debt. Conclusion: The Oregon Security Agreement Granting Security Interest in Aircraft Engine is a vital legal document designed to protect the creditor's investment. Understanding the key components, variations, and enforcement mechanisms is crucial for both debtors and creditors to navigate this agreement effectively and ensure legal compliance.
