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.
South Dakota Security Agreement Granting Security Interest in Aircraft Engine is a legal document used in finance and aircraft ownership to protect the interests of lenders and secured parties. It establishes a security interest in an aircraft engine, providing assurance that the lender has rights over the engine in case of default or non-payment by the borrower. Keywords: South Dakota, security agreement, granting security interest, aircraft engine, lender, secured party, finance, ownership, default, non-payment. There are various types of South Dakota Security Agreement Granting Security Interest in Aircraft Engine, which include: 1. Purchase Money Security Agreement: This type of agreement is used when the lender provides financing for the purchase of an aircraft engine. It grants the lender a security interest in the engine as collateral until the borrower repays the loan. 2. Non-Purchase Money Security Agreement: Unlike the purchase money agreement, this type is used when the borrower already owns the aircraft engine but requires financing. The lender obtains a security interest in the engine to secure the loan. 3. Subordination Agreement: In certain cases, multiple lenders may have security interests in the same aircraft engine. A subordination agreement helps determine the priority of these loan agreements, ensuring that creditors are repaid in the correct order in case of default or bankruptcy. 4. Assignment of Security Agreement: This agreement allows a lender to assign its security interest to another party. It is commonly used when the lender wants to transfer its rights and obligations to a different entity, such as another financial institution or investor. 5. Amendment Agreement: In situations where the original security agreement needs modifications or updates, an amendment agreement is used. It outlines the changes made to the initial agreement, ensuring all parties involved are aware of the revised terms and conditions. 6. Release of Security Agreement: When a borrower has fully repaid their loan or met their obligations, a release of security agreement is executed. This document confirms that the security interest in the aircraft engine has been released, removing any liens or encumbrances on the engine. In conclusion, South Dakota Security Agreement Granting Security Interest in Aircraft Engine is a vital legal tool when financing aircraft engines. It helps lenders protect their investments, ensures proper repayment, and regulates the interests of multiple parties involved in aircraft ownership and financing.
