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.
A District of Columbia Security Agreement Regarding Aircraft and Equipment is a legal document that outlines the terms and conditions for a security interest in aircraft and related equipment within the District of Columbia. This agreement is typically utilized in transactions involving the financing, leasing, or sale of aircraft to protect the interests of parties involved. In the District of Columbia, there are various types of Security Agreements regarding Aircraft and Equipment, such as: 1. District of Columbia Security Agreement for Aircraft Financing: This type of agreement is often used by lenders or financial institutions when providing funding for the purchase or lease of an aircraft. It establishes a security interest in the aircraft and its equipment to secure the lender's investment. 2. District of Columbia Security Agreement for Equipment Lease: This agreement is commonly used in equipment leasing transactions where a lessor retains a security interest in the leased equipment, including aircraft. It protects the lessor's rights in case of default or non-payment by the lessee. 3. District of Columbia Security Agreement for Sale of Aircraft: In certain cases, a seller may enter into a security agreement to secure the payment for an aircraft being sold. This agreement allows the seller to retain a security interest in the aircraft until the buyer fulfills their payment obligations. 4. District of Columbia Security Agreement for Equipment Financing: This type of agreement pertains to the financing of equipment, including aircraft. Lenders may require borrowers to sign this agreement to secure their interest in the financed equipment, providing protection in case of default. Key provisions included in District of Columbia Security Agreement Regarding Aircraft and Equipment typically cover: 1. Identification of Parties: The agreement identifies the parties involved, including the secured party (lender, lessor, or seller) and the debtor (borrower, lessee, or buyer). 2. Description of Aircraft and Equipment: A detailed description of the aircraft and equipment subject to the security interest is outlined to ensure clarity and accuracy. 3. Grant of Security Interest: The agreement establishes the grant of a security interest from the debtor to the secured party, securing their rights over the aircraft and equipment. 4. Terms and Conditions: This section specifies the terms and conditions of the security agreement, including repayment terms, interest rates, and any additional obligations or responsibilities. 5. Default and Remedies: The agreement outlines the consequences of default, such as repossession or sale of the aircraft and equipment, and the rights and remedies available to the secured party. 6. Governing Law and Jurisdiction: This provision determines that the agreement is governed by the laws of the District of Columbia and identifies the appropriate jurisdiction in case of disputes. 7. Signatures and Execution: Finally, the agreement is signed by both parties and usually requires notarization or witnesses for validity and enforceability. It is crucial to consult legal professionals or aviation experts knowledgeable about the District of Columbia laws while drafting or executing a Security Agreement Regarding Aircraft and Equipment to ensure compliance and protection of interests in all parties involved.
