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.
Maryland Security Agreement Regarding Aircraft and Equipment is a legal document designed to establish a security interest in aircraft and related equipment located in Maryland. This agreement ensures that the lender (secured party) has the right to take possession of the aircraft and equipment as collateral in the event of a default by the borrower (debtor). By creating a security interest, the lender increases the likelihood of recouping their investment by exercising their rights over the collateral. There are several types of Maryland Security Agreements Regarding Aircraft and Equipment, each catering to specific situations and parties involved. These may include: 1. Maryland Security Agreement for Aircraft Purchase: This agreement is used when financing the purchase of an aircraft in Maryland. The lender will obtain a security interest in the aircraft and related equipment to secure the loan. 2. Maryland Security Agreement for Aircraft Lease: In cases where an aircraft is leased for commercial or personal use, this agreement serves to protect the lessor's investment. The lessor may obtain a security interest in the aircraft and equipment to safeguard against default. 3. Maryland Security Agreement for Aircraft Maintenance: Maintaining an aircraft can be expensive. In such cases, a maintenance provider may require a security agreement to ensure they are compensated for the services rendered. This agreement grants the provider a security interest in the aircraft and equipment until payment is made. 4. Maryland Security Agreement for Aircraft Refinancing: When an aircraft owner wishes to refinance an existing loan, a security agreement is often required by the new lender. This agreement grants them a security interest in the aircraft and equipment being refinanced. 5. Maryland Security Agreement for Equipment Financing: Besides aircraft, there might be additional equipment included in the agreement, such as avionics, engines, and specialized machinery. This comprehensive agreement allows the lender to secure a broader range of equipment. Maryland Security Agreements Regarding Aircraft and Equipment are essential for protecting the rights of lenders and securing their investments in the aviation industry. These agreements establish a legal framework that clarifies the rights and obligations of all parties involved. Whether for purchasing, leasing, or maintaining aircraft, having a properly executed security agreement is crucial for ensuring a smooth and secure transaction.
