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 Kentucky Security Agreement Regarding Aircraft and Equipment refers to a legally binding contract that establishes security or collateral against a loan or financing agreement related to aircraft and associated equipment within the state of Kentucky. This agreement ensures that the lender has a specified interest in the aircraft and its equipment, enabling them to recoup their investment in case of default. The Kentucky Security Agreement Regarding Aircraft and Equipment is a crucial legal document that protects the interests of both parties involved in financing aircraft transactions. It covers various types of equipment, including but not limited to engines, avionics, spare parts, and accessories. There are different types of Kentucky Security Agreements regarding Aircraft and Equipment, based on various factors and needs of the involved parties. Some common types include: 1. Purchase Money Security Agreement (PSA): This agreement is typically used when a lender finances the acquisition of an aircraft or its equipment, and the lender retains a security interest in the purchased property until the loan is fully repaid. 2. Chattel Mortgage: A Chattel Mortgage serves as a security agreement where the lender holds a security interest in the aircraft or equipment as collateral for the loan. Once the loan is paid off, the security interest is removed. 3. Assignment of Lease Agreement: In this type of agreement, the lessee assigns their lease agreement to the lender as collateral. The lender then has the right to take possession of the aircraft and equipment under the terms of the lease if the lessee defaults on their obligations. 4. Conditional Sales Contract: A Conditional Sales Contract establishes a security interest for the seller or lender until the buyer or borrower pays off the debt. Once the debt is settled, the ownership of the aircraft or equipment is transferred to the buyer. Kentucky Security Agreements Regarding Aircraft and Equipment are essential in ensuring the repayment of loans or obligations related to aircraft and associated equipment transactions. These agreements provide legal protection to lenders while granting borrowers access to much-needed financing. It is crucial for all parties involved to carefully review, negotiate, and adhere to the terms and conditions outlined in the agreement to avoid any disputes in the future.
