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 Iowa Security Agreement Regarding Aircraft and Equipment is a legal document that outlines the terms and conditions for securing debt through the use of aircraft and related equipment as collateral in the state of Iowa. This agreement serves as a legally binding contract between a borrower and a lender, ensuring that the lender has a security interest in the aircraft and equipment until the debt is fully repaid. Under the Iowa Security Agreement, there are several types that cater to different scenarios and requirements. Some notable types include: 1. Iowa Security Agreement for Aircraft and Engine: This type of agreement focuses on securing debt using aircraft and their respective engines as collateral. The borrower pledges both the aircraft and engine as security, providing assurance to the lender that they have a right to seize or repossess these assets in case of non-payment or default. 2. Iowa Security Agreement for Equipment: This variant specifically covers security interests over equipment related to aviation. It includes items such as avionics, ground support equipment, maintenance tools, and other essential components necessary for the functioning and maintenance of aircraft. 3. Iowa Security Agreement for Aircraft Parts: This agreement type deals specifically with aircraft parts used for repair, replacement, or maintenance purposes. Borrowers agree to put these parts as collateral, allowing lenders to claim ownership or right of repossessions should the borrower fail to fulfill their loan obligations. 4. Iowa Security Agreement for Avionics: This type focuses on avionics systems, which involve electronic instruments and communication equipment used in aircraft. It grants lenders a security interest in these avionic components, ensuring that they have the right to take possession of or sell them if the borrower defaults on loan payments. The Iowa Security Agreement Regarding Aircraft and Equipment typically includes key elements, such as a detailed description of the collateral, borrower and lender information, specific terms and conditions, provisions for default and repossession, and other relevant legal clauses. It serves as a crucial document for lenders to protect their investment and ensure repayment while providing borrowers with the necessary funds for their aviation-related ventures.
