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 Delaware Security Agreement Regarding Aircraft and Equipment is a legal document that establishes a security interest in aircraft and related equipment in favor of a lender or creditor. This agreement is a critical component of securing financing for the acquisition, lease, or operation of aircraft and equipment within the state of Delaware. Keywords: Delaware, Security Agreement, Aircraft, Equipment, Financing, Lender, Creditor. There are several types of Delaware Security Agreements Regarding Aircraft and Equipment: 1. Chattel Mortgage: This type of security agreement involves the transfer of ownership interest in the aircraft or equipment to the lender or creditor until the loan or debt is fully repaid. The lender holds the title or ownership until its release is triggered by fulfilling the agreed-upon terms of the loan. 2. Conditional Sales Contract: In a conditional sales contract, the lender retains ownership of the aircraft or equipment until the borrower fulfills the full payment obligations. Once the payments are completed, ownership is transferred to the borrower. 3. Leasehold Mortgage: This type of security agreement is used when the aircraft or equipment is leased rather than purchased. The lender gains a security interest in the leased asset and has priority over other creditors if the lessee defaults on their obligations. 4. Assignment of Security Interest: This agreement involves the lender assigning their security interest in the aircraft or equipment to another party. It allows the lender to transfer their rights to a third party, typically to secure another loan or fulfill their own obligations. 5. Floating Lien: A floating lien is a broader security interest that covers multiple assets, including various aircraft or equipment. It grants the lender an interest in all eligible assets, and as additional assets are acquired, they are automatically covered under the agreement. Delaware Security Agreements Regarding Aircraft and Equipment play a crucial role in protecting the interests of lenders, creditors, and borrowers involved in aircraft and equipment financing in Delaware. These agreements ensure that the lender has a legal claim over the assets should the borrower default, providing a measure of security for the loan. The specific type of agreement employed depends on the nature of the transaction, ownership structure, and the preferences of the parties involved. Overall, a Delaware Security Agreement Regarding Aircraft and Equipment serves as a vital legal instrument in facilitating smooth financial transactions within the aviation industry, supporting the acquisition, lease, and financing of aircraft and related equipment while safeguarding the interests of lenders and creditors.
