The Federal Aviation Regulations governing the registration of aircraft and the recording of conveyances in the United States are found at 14 C.F.R. Parts 45, 47 and 49 (the "Regulations"). The Regulations have been established by the FAA to carry out the provisions and requirements of the Act. The procedure for recording interests in U.S. registered aircraft is set out in ?????? 44107 and 44108 of the Act, and Part 49 of the Regulations.
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.
Security Agreement Regarding Aircraft and Equipment
Category:
State:
Multi-State
Control #:
US-02505BG
Format:
Word;
PDF;
Rich Text
Instant download
Description
Definition and meaning
A Security Agreement Regarding Aircraft and Equipment is a legal document that establishes a security interest in specified aircraft, engines, and equipment. This agreement is made between a debtor, who owns the aircraft and equipment, and a secured party, typically a lender or financial institution, granting them a right to the aircraft until the debt is settled. This document is essential in the context of secured transactions under Article 9 of the Uniform Commercial Code (UCC).
How to complete a form
Completing the Security Agreement Regarding Aircraft and Equipment involves several key steps:
- Fill in the date of the agreement.
- Provide the names and addresses of both the debtor and secured party.
- Identify the aircraft and equipment: list the FAA registration number, manufacturer's name, year, model, and serial number.
- Detail the payment terms, including the principal sum, interest rate, and repayment schedule.
- Specify the location where the aircraft is permanently kept.
- Include a section for notarization to confirm the identities of the parties involved.
Ensure accuracy in all provided information to prevent complications in the future.
Key components of the form
The Security Agreement consists of several critical components:
- Creation of Security Interest: Establishes the secured nature of the agreement.
- Repayment Terms: Outlines the conditions for repayment, including monthly installments.
- Assignment of Income: Assigns all income generated from the aircraft to the secured party.
- Default and Remedies: Details the actions the secured party may take if the debtor defaults on the obligations.
- Notices: Specifies how notices concerning the agreement should be communicated.
Understanding these components is crucial for both parties to protect their interests.
Who should use this form
This form is essential for individuals or businesses that own aircraft or related equipment and seek financing by using these assets as collateral. It is particularly useful for:
- Aircraft owners looking to secure loans based on their aircraft value.
- Financial institutions or lenders needing to formalize their security interest in the collateral.
- Entities involved in the sale or lease of aircraft who require a clear agreement on the use and financing of the aircraft.
Additionally, anyone with limited legal knowledge can utilize this form, given its straightforward structure and language.
Common mistakes to avoid when using this form
When completing the Security Agreement Regarding Aircraft and Equipment, avoid these common errors:
- Inaccurate information: Ensure all details about the aircraft and parties are correct.
- Missing signatures: Both debtor and secured party must sign the document to make it legally binding.
- Neglecting notarization: Not having the agreement notarized can lead to enforceability issues.
- Omitting important sections: Each component of the agreement must be included to avoid legal confusion later on.
By being mindful of these mistakes, users can minimize potential complications arising from the agreement.
What to expect during notarization or witnessing
When notarizing the Security Agreement Regarding Aircraft and Equipment, the following steps typically occur:
- The parties involved will meet with a notary public.
- Both the debtor and secured party will need to present valid identification to verify their identities.
- The notary will witness the signing of the document, ensuring that both parties willingly consent to the terms.
- After witnessing the signatures, the notary will stamp and sign the document, providing an official seal.
This process adds a layer of legitimacy and protection, ensuring that the agreement is recognized within legal and financial contexts.
Benefits of using this form online
Utilizing the Security Agreement Regarding Aircraft and Equipment in an online format offers several advantages:
- Convenience: Users can access, fill out, and submit the form from any location.
- Time-saving: Online forms typically have guided instructions, reducing the time spent filling them out.
- Immediate access: Users can download the completed forms straight to their devices.
- Accessibility: Online platforms often provide resources and customer support for any questions or issues that may arise.
These benefits contribute to a more efficient and user-friendly experience when preparing legal documentation.
Free preview
How to fill out Security Agreement Regarding Aircraft And Equipment?
Aren't you tired of choosing from numerous samples each time you want to create a Security Agreement Regarding Aircraft and Equipment? US Legal Forms eliminates the wasted time numerous American people spend browsing the internet for suitable tax and legal forms. Our professional crew of attorneys is constantly changing the state-specific Forms collection, so that it always has the right documents for your situation.
If you’re a US Legal Forms subscriber, simply log in to your account and click on the Download button. After that, the form can be found in the My Forms tab.
Users who don't have a subscription need to complete easy steps before being able to download their Security Agreement Regarding Aircraft and Equipment:
- Use the Preview function and read the form description (if available) to make sure that it’s the best document for what you are looking for.
- Pay attention to the validity of the sample, meaning make sure it's the correct sample for the state and situation.
- Make use of the Search field on top of the webpage if you want to look for another document.
- Click Buy Now and choose a preferred pricing plan.
- Create an account and pay for the service using a credit card or a PayPal.
- Get your document in a convenient format to finish, create a hard copy, and sign the document.
As soon as you’ve followed the step-by-step instructions above, you'll always be able to sign in and download whatever document you want for whatever state you require it in. With US Legal Forms, completing Security Agreement Regarding Aircraft and Equipment templates or any other legal paperwork is easy. Get started now, and don't forget to examine your samples with accredited lawyers!
Form popularity
FAQ
By filing a financing statement with the appropriate public office. by possessing the collateral. by controlling the collateral; or. it's done automatically upon attachment of the security interest.
A security interest is a legal right granted by a debtor to a creditor over the debtor's property (usually referred to as the collateral) which enables the creditor to have recourse to the property if the debtor defaults in making payment or otherwise performing the secured obligations.
A security agreement is a document that provides a lender a security interest in a specified asset or property that is pledged as collateral. Security agreements often contain covenants that outline provisions for the advancement of funds, a repayment schedule, or insurance requirements.
After five years, it becomes invalid and must be renewed every five years. It is very important to check all the information provided under the agreement regarding the presented items.
It should be noted that UCC financing statements filed now generally do not contain a grant of the security interest and generally are not signed or otherwise authenticated by the Debtor and therefore would not satisfy the requirement of a security agreement.
Article 9 contains a statute of frauds which requires a security agreement to be in writing unless it is pledged.The "perfection" of a security agreement allows a secured party to gain priority to the collateral over any third party. To perfect a security agreement, the filing of a public notice is usually required.
Three things must be present in order for the secured party to obtain a protected security interest in the collateral: 1) the secured party must pay for or give something of value in exchange for receiving the security interest, 2) the debtor must own the collateral or have proper authority over the collateral in order
The security agreement must: give the names of the parties to the agreement. contain words which state that the aircraft owner grants the secured party a security interest in the collateral.contain the ink signature(s) of the debtor/aircraft owner(s) showing signer's title, as appropriate.
Sign two copies of the agreement, one for you and one for the other party. Depending on the nature of its terms, you may decide to have your agreement witnessed or notarized. This will limit later challenges to the validity of a party's signature. If your agreement is complicated, do not use the enclosed form.