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.
The Arizona Security Agreement Regarding Aircraft and Equipment is a legal document designed to safeguard the interests of lenders and parties involved in aircraft financing transactions within the state of Arizona. This agreement establishes a security interest in the aircraft and equipment being financed, thereby giving the lender a right to repossess or sell the collateral in the event of default. Keywords: Arizona, security agreement, aircraft, equipment, legal document, lenders, financing transactions, interests, collateral, repossession, default. There are several types of security agreements regarding aircraft and equipment in Arizona, including: 1. First Priority Security Agreement: This agreement establishes a lender's first priority security interest in the aircraft and equipment, ensuring that they have the highest-ranking claim on the collateral in case of default. 2. Second Priority Security Agreement: In cases where there is already an existing security interest, this agreement grants a lender a second priority position, specifying their rights in relation to the first priority lender. 3. Subordinate Security Agreement: This type of agreement is entered into when a lender has a subordinate position to other previously established security interests. It outlines the subordinate lender's rights and the conditions under which they may act upon their security interest. 4. Conditional Sales Agreement: This agreement is a type of security agreement that provides for the sale of the aircraft or equipment upon the occurrence of specific conditions, such as the borrower's default. It enables the lender to repossess and sell the collateral to satisfy the outstanding debt. 5. Chattel Mortgage Agreement: This type of security agreement involves the creation of a lien on the aircraft or equipment, ensuring the lender's right to seize and sell the property to recover the debts owed. These various types of security agreements play a crucial role in protecting the interests of lenders and borrowers in Arizona's aircraft financing industry. By establishing clear guidelines and procedures for repossession and sale of collateral, these agreements provide a legal framework that ensures financial stability and security for both parties involved.
