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.
California Security Agreement Regarding Aircraft and Equipment is a legal document that outlines the terms and conditions between a creditor and a debtor regarding the financing or leasing of aircraft and related equipment in the state of California. This agreement serves to secure the creditor's interest in the aircraft and equipment as collateral. A California Security Agreement Regarding Aircraft and Equipment typically contains various key elements such as: 1. Parties Involved: The agreement identifies the creditor and the debtor, outlining their legal names, addresses, and relevant contact information. 2. Description of Collateral: It includes a comprehensive description of the aircraft and related equipment being financed or leased. This may encompass details such as make, model, serial numbers, N-number (aircraft registration number), engine specifications, and any other relevant identifying information. 3. Security Interest: The agreement outlines the security interest held by the creditor over the collateral. It explains that the creditor has a right to the aircraft and equipment as collateral if the debtor defaults on the loan or lease agreement. 4. Obligations of the Debtor: This section specifies the debtor's responsibilities, including maintaining and insuring the aircraft and equipment, complying with relevant regulations and laws, and providing accurate records of the collateral. 5. Payment and Default: The agreement explains the terms and conditions for repayment, including the amount, interest rates, payment schedule, and consequences of default. It may outline the rights of the creditor in case of default, such as repossession and sale of the collateral to recover the debt. 6. Perfection of Security Interest: This part discusses the steps required to perfect the security interest, such as filing necessary documents with the appropriate Federal Aviation Administration (FAA) offices and complying with California state laws regarding security agreements. 7. Indemnification and Insurance: The agreement may include provisions relating to insurance requirements, ensuring the collateral is adequately insured against risks such as damage, loss, or liability. Apart from the general California Security Agreement Regarding Aircraft and Equipment, there may be specialized types or variations of this agreement used in specific scenarios, such as: 1. Aircraft Lease Security Agreement: This type of agreement is used when an aircraft lessor finances the leasing of an aircraft to a lessee. It outlines the terms and conditions specific to aircraft leasing transactions, addressing aspects like rental payments, maintenance obligations, and end-of-lease arrangements. 2. Aircraft Mortgage Security Agreement: In this variation, the creditor provides a loan to the debtor secured by a mortgage on the aircraft. It establishes the terms for repayment, the creditor's rights upon default, and how the mortgage is to be executed and recorded. 3. Equipment Security Agreement: While an aircraft is the primary collateral in the general agreement, an equipment security agreement may specifically focus on financing or leasing aviation-related equipment, excluding the aircraft itself. This might include items like avionics, engines, or ground support equipment. It is important to approach legal matters with professional advice from an attorney familiar with aviation law and specific regulations outlined by California law. This description is for informational purposes only and should not be considered as legal advice.
