Under the Federal Aviation Act of 1958, any conveyance that affects the title to, or any interest in, any civil aircraft of the United States must be acknowledged and recorded with the Administrator of the Federal Aviation Administration in the manner prescribed by statute. After such an instrument is recorded, it is valid as to all persons without recording and regardless of notice.
Documents relating to interests in aircraft are filed with the FAA Registry in Oklahoma City, Oklahoma. Documents must be signed in ink by the appropriate party (e.g. seller, grantor, lien claimant, etc.) or by someone on behalf of the appropriate party with a title acceptable to the FAA (President, Chief Manager etc.). The FAA Registry Examination Guidelines contain a list of titles that are acceptable to the FAA.
To be eligible for recording, an instrument granting a security interest in an aircraft must be signed in ink and describe the aircraft by manufacturer, model, serial number, and registration number. The debtor must be the registered owner of the aircraft; be the owner of record on the date the instrument is executed, as evidenced by documents on file with the FAA Aircraft Registry; or the lien document be accompanied by the debtors evidence of ownership/, application.
Puerto Rico Aircraft Lease Agreement is a legal contract between the owner (lessor) and the lessee, in which the lessor agrees to lease an aircraft to the lessee for a specified period of time. In this scenario, the agreement also includes a provision for the lessee to supply a new engine in exchange for flight hours and grants the lessor a security interest in the engine. This type of aircraft lease agreement is commonly referred to as an Engine Lease and Flight Hour Agreement (ELF HA). It is a unique arrangement that allows the lessee to provide a new engine for the leased aircraft in exchange for a predetermined number of flight hours. By offering flight hours in return, the lessee ensures the utilization of the aircraft and mitigates the cost of the engine for the lessor. The Puerto Rico ELF HA typically includes specific terms and conditions to protect both parties' interests. These may include: 1. Engine Specifications: The agreement should outline the required specifications and performance criteria for the new engine. This includes details such as manufacturer, model, thrust rating, and any other relevant technical specifications. 2. Flight Hour Calculation: The contract will specify the number of flight hours that the lessee must provide in exchange for the new engine. The calculation method should be clearly defined, considering factors like block hour time, idle time, and maintenance downtime. 3. Engine Installation and Ownership: The agreement should include provisions related to the installation of the new engine and the transfer of ownership from the lessee to the lessor. Proper documentation, registration, and necessary approvals should be performed to ensure compliance with aviation regulations. 4. Maintenance and Repair: The ELF HA should outline responsibilities regarding engine maintenance and repair. It may provide guidelines on routine maintenance, scheduled inspections, and compliance with airworthiness directives. Additionally, it might include provisions for unforeseen repairs or overhauls. 5. Insurance Coverage: The agreement should clearly state the required insurance coverage. The lessee may be required to provide proof of insurance covering the leased aircraft, including the new engine, against risks such as loss, damage, or third-party liability. 6. Security Interest: As part of the agreement, the lessor may request a security interest in the engine. This grants the lessor certain rights in case of default by the lessee, potentially allowing the lessor to repossess the engine or take other legal actions to recover their investment. It is essential for both parties to consult legal counsel before entering into any Puerto Rico ELF HA. This will ensure that the agreement's terms and conditions are suitable for their specific needs and compliant with applicable laws and regulations.Puerto Rico Aircraft Lease Agreement is a legal contract between the owner (lessor) and the lessee, in which the lessor agrees to lease an aircraft to the lessee for a specified period of time. In this scenario, the agreement also includes a provision for the lessee to supply a new engine in exchange for flight hours and grants the lessor a security interest in the engine. This type of aircraft lease agreement is commonly referred to as an Engine Lease and Flight Hour Agreement (ELF HA). It is a unique arrangement that allows the lessee to provide a new engine for the leased aircraft in exchange for a predetermined number of flight hours. By offering flight hours in return, the lessee ensures the utilization of the aircraft and mitigates the cost of the engine for the lessor. The Puerto Rico ELF HA typically includes specific terms and conditions to protect both parties' interests. These may include: 1. Engine Specifications: The agreement should outline the required specifications and performance criteria for the new engine. This includes details such as manufacturer, model, thrust rating, and any other relevant technical specifications. 2. Flight Hour Calculation: The contract will specify the number of flight hours that the lessee must provide in exchange for the new engine. The calculation method should be clearly defined, considering factors like block hour time, idle time, and maintenance downtime. 3. Engine Installation and Ownership: The agreement should include provisions related to the installation of the new engine and the transfer of ownership from the lessee to the lessor. Proper documentation, registration, and necessary approvals should be performed to ensure compliance with aviation regulations. 4. Maintenance and Repair: The ELF HA should outline responsibilities regarding engine maintenance and repair. It may provide guidelines on routine maintenance, scheduled inspections, and compliance with airworthiness directives. Additionally, it might include provisions for unforeseen repairs or overhauls. 5. Insurance Coverage: The agreement should clearly state the required insurance coverage. The lessee may be required to provide proof of insurance covering the leased aircraft, including the new engine, against risks such as loss, damage, or third-party liability. 6. Security Interest: As part of the agreement, the lessor may request a security interest in the engine. This grants the lessor certain rights in case of default by the lessee, potentially allowing the lessor to repossess the engine or take other legal actions to recover their investment. It is essential for both parties to consult legal counsel before entering into any Puerto Rico ELF HA. This will ensure that the agreement's terms and conditions are suitable for their specific needs and compliant with applicable laws and regulations.
