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.
Title: Exploring the New Mexico Security Agreement Regarding Aircraft and Equipment: An In-depth Overview Introduction: The New Mexico Security Agreement Regarding Aircraft and Equipment refers to a legally binding agreement designed to establish a security interest in aircraft and related equipment within the state of New Mexico. This comprehensive document ensures the protection of creditors' rights and governs the financing and purchasing transactions of aircraft, engines, avionics, and other associated equipment. Let us delve deeper into this topic, including the different types of New Mexico Security Agreements available. 1. General Overview of New Mexico Security Agreements: A New Mexico Security Agreement is primarily initiated between the debtor (borrower) and the creditor, wherein the debtor pledges and grants a security interest in specific aircraft and related equipment to secure any outstanding debts or loans. This agreement ensures that lenders have a legal claim over the aircraft or equipment if the borrower defaults on their obligations. 2. Key Components of the New Mexico Security Agreement: a. Description of the Aircraft and Equipment: The agreement typically includes a detailed description of the aircraft, engines, avionics, or other equipment being pledged as collateral. This description encompasses information such as the make, model, serial number, and registration details. b. Grant of Security Interest: The debtor grants the creditor a security interest in the aircraft and equipment, allowing the creditor to secure its interests and recovery rights in case of default. c. Perfection of Security Interest: The agreement outlines the necessary steps to perfect the security interest, ensuring the creditor's priority over other potential creditors. This usually involves filing relevant documentation with the Federal Aviation Administration (FAA) or other appropriate regulatory authorities. d. Rights and Obligations of Parties: The agreement highlights the respective rights and obligations of both the debtor and creditor. These terms often include provisions related to maintenance, insurance coverage, inspection rights, and restrictions on the debtor's ability to sell, lease, or encumber the pledged assets. 3. Types of New Mexico Security Agreements Regarding Aircraft and Equipment: a. Traditional Security Agreement: This is the most common type of agreement wherein the debtor pledges the aircraft and related equipment as collateral, ensuring the repayment of an underlying debt or loan. b. Aircraft Lease Security Agreement: In case of an aircraft lease, the lessor might require a security agreement to protect their investment. This agreement enables the lessor to repossess the aircraft or equipment if the lessee fails to meet their obligations. c. Purchase Money Security Agreement (PSA): This specialized agreement arises when the creditor finances the acquisition of an aircraft or equipment. The PSA grants the creditor a security interest in the aircraft or equipment until the underlying loan is fully paid. Conclusion: The New Mexico Security Agreement Regarding Aircraft and Equipment is a crucial legal instrument that protects the financial interests of lenders and promotes secure financing transactions within the aviation industry. Understanding the different types of agreements available allows borrowers, creditors, lessors, and lessees to navigate these complex transactions while ensuring compliance with New Mexico state laws and regulations.
