Under the Federal Aviation Act of 1958, any conveyance that affects the title to, or any interest in, any civil aircraft of the United States must be acknowledged and recorded with the Administrator of the Federal Aviation Administration in the manner prescribed by statute. After such an instrument is recorded, it is valid as to all persons without recording and regardless of notice.
Documents relating to interests in aircraft are filed with the FAA Registry in Oklahoma City, Oklahoma. Documents must be signed in ink by the appropriate party (e.g. seller, grantor, lien claimant, etc.) or by someone on behalf of the appropriate party with a title acceptable to the FAA (President, Chief Manager etc.). The FAA Registry Examination Guidelines contain a list of titles that are acceptable to the FAA.
To be eligible for recording, an instrument granting a security interest in an aircraft must be signed in ink and describe the aircraft by manufacturer, model, serial number, and registration number. The debtor must be the registered owner of the aircraft; be the owner of record on the date the instrument is executed, as evidenced by documents on file with the FAA Aircraft Registry; or the lien document be accompanied by the debtors evidence of ownership/, application.
An Arkansas Aircraft Lease Agreement is a legally binding contract that outlines the terms and conditions of leasing an aircraft and specifically addresses the provision of a new engine in exchange for flight hours. This type of agreement also allows the lessor to secure an interest in the engine as a form of collateral to protect their investment. One common type of Arkansas Aircraft Lease Agreement is the "Engine Lease Agreement". This agreement specifies the lease of a new engine to the lessee in exchange for a predetermined number of flight hours. The lessee is responsible for maintaining and operating the engine during the lease term and returning it in good condition at the end of the agreement. Another type of Arkansas Aircraft Lease Agreement is the "Engine Purchase Agreement with Lease-back". In this scenario, the lessor supplies a new engine to the lessee and simultaneously agrees to lease the aircraft back from the lessee. This arrangement allows the lessee to generate flight hours while retaining ownership of the aircraft and its engine. The "Engine Lease Agreement with Security Interest" is another variant of the Arkansas Aircraft Lease Agreement. In this case, the lessor not only provides a new engine to the lessee but also requires the lessee to grant a security interest in the engine as collateral. This security interest protects the lessor's rights in case of non-payment or default by the lessee. The Arkansas Aircraft Lease Agreement typically includes key clauses such as the identification of the aircraft and engine, lease term, flight hour requirements, maintenance responsibilities, insurance requirements, termination clauses, and any additional provisions that the parties may agree upon. It is essential for both parties involved to thoroughly review and understand the terms and conditions outlined in the Arkansas Aircraft Lease Agreement. Seeking legal counsel is advisable to ensure compliance with relevant aviation regulations and to protect the interests of both the lessor and lessee.
