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 North Dakota Security Agreement Regarding Aircraft and Equipment is a legal document that establishes a security interest in aircraft and related equipment. This agreement provides creditors with some assurance that their interest in the aircraft and equipment will be protected in case of a default by the debtor. Keywords: North Dakota, Security Agreement, Aircraft, Equipment, Creditors, Debtor, Default, Legal Document, Security Interest. Types of North Dakota Security Agreements regarding Aircraft and Equipment: 1. North Dakota Conditional Sale Security Agreement: This type of security agreement is commonly used to finance the purchase of an aircraft or equipment. Under this agreement, the debtor agrees to make payments to the creditor, and the creditor holds a security interest in the aircraft or equipment until the debt is fully paid off. In case of default, the creditor has the right to repossess the aircraft or equipment. 2. North Dakota Chattel Mortgage Security Agreement: This type of security agreement allows the creditor to claim a security interest in the aircraft or equipment as collateral for a loan. The debtor retains possession of the aircraft or equipment but gives the creditor the right to reclaim it if the debtor defaults on the loan. This agreement is recorded with the appropriate authorities to establish the creditor's priority in case of competing claims. 3. North Dakota Equipment Lease Security Agreement: In an equipment lease security agreement, the lessor retains ownership of the aircraft or equipment and leases it to the debtor. The creditor holds a security interest in the leased property to secure any outstanding debt owed by the debtor. If the debtor defaults, the creditor may have the right to repossess the aircraft or equipment. 4. North Dakota Promissory Note and Security Agreement: This type of security agreement combines a promissory note and a security agreement, allowing the creditor to enforce the debt secured by the aircraft or equipment. The debtor promises to pay back the loan according to the agreed-upon terms, and the creditor holds a security interest in the aircraft or equipment until the debt is repaid. In case of default, the creditor may take legal action to recover the outstanding debt. These various types of security agreements provide creditors with different options for securing their interests in aircraft and equipment in North Dakota, ensuring that their rights are protected in case of default or non-payment by the debtor.
