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 Pennsylvania Security Agreement Regarding Aircraft and Equipment is a legal document that establishes a creditor's security interest in an aircraft or equipment located in Pennsylvania. This agreement provides protection to the lender in the event that the borrower defaults on their repayment obligations. Keywords: 1. Security Agreement: A written contract that grants a creditor a security interest in collateral, such as aircraft or equipment, as protection against borrower default. 2. Pennsylvania Security Agreement: This refers specifically to a security agreement established in Pennsylvania, governed by the laws of the state, and enforced through the Pennsylvania court system. 3. Aircraft: Refers to any airborne vehicle designed for transportation or carrying passengers or cargo, including airplanes, helicopters, and drones. 4. Equipment: In the context of a security agreement, equipment refers to any tangible assets used in a business or commercial setting, such as machinery, tools, or vehicle fleets. Types of Pennsylvania Security Agreement Regarding Aircraft and Equipment: 1. Aircraft Security Agreement: A specific type of security agreement that focuses solely on aircraft. This agreement enables the lender to take possession or dispose of the aircraft in the event of a default. 2. Equipment Security Agreement: This form of security agreement covers various types of equipment used in businesses. It grants the lender the right to seize, sell, or otherwise dispose of the equipment to recover the outstanding debt. 3. Blanket Security Agreement: A more comprehensive agreement that covers both aircraft and equipment. It allows the lender to lay claim to all collateral specified in the agreement, providing broader protection. 4. Chattel Mortgage: While not strictly a security agreement, a chattel mortgage is another way to secure loans for aircraft and equipment in Pennsylvania. It involves placing a lien on the specific asset, giving the lender rights over the property if the borrower fails to meet repayment obligations. 5. Conditional Sales Contract: This is another method of financing aircraft and equipment purchases. It involves the seller retaining ownership rights until the buyer fulfills the payment obligations, acting as a form of security. In conclusion, a Pennsylvania Security Agreement Regarding Aircraft and Equipment is a binding legal document that establishes a lender's security interest in these assets. The agreement can specifically focus on either aircraft or equipment separately or cover both under a blanket security agreement. This ensures that lenders have recourse if borrowers default on their loans, providing a framework for asset seizure, disposal, or other necessary actions for debt recovery.
