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.
Rhode Island Security Agreement Regarding Aircraft and Equipment is a legal document that signifies an arrangement between a lender and a borrower in the state of Rhode Island regarding the security interest over specific aircraft and equipment. This agreement ensures that the lender has a secured position and collateral in case the borrower defaults on the loan. Under Rhode Island law, there are two prominent types of Security Agreements Regarding Aircraft and Equipment: 1. Rhode Island Security Agreement Regarding Aircraft: This type of agreement specifically focuses on aircraft assets, such as airplanes, helicopters, and other flying vehicles. It establishes a lien on the aircraft, meaning the lender has a legal claim to the aircraft as collateral until the borrower repays the loan. 2. Rhode Island Security Agreement Regarding Equipment: Unlike the previous type, this agreement centers around equipment assets, which can include machinery, tools, vehicles, and other tangible items. It enables the lender to establish a security interest over the borrower's equipment, ensuring recovery in case of default. The Rhode Island Security Agreement Regarding Aircraft and Equipment outlines various terms and conditions, which may include: 1. Description of the Aircraft/Equipment: The agreement should provide a detailed description of the aircraft or equipment being used as collateral. This typically includes information such as the make, model, serial number, and any unique identifying features. 2. Grant of Security Interest: The borrower grants the lender a security interest in the specified aircraft or equipment, giving the lender rights to repossess and sell the collateral to recover the outstanding debt in case of default. 3. Loan Terms: The agreement outlines the terms and conditions of the loan, including repayment schedule, interest rate, late payment fees, and any other financial obligations. 4. Default and Remedies: It specifies the events that constitute a default, such as missed payments or violations of other loan terms. The agreement outlines the remedies available to the lender in the event of default, including repossession and sale of the collateral. 5. Insurance: Depending on the agreement, the borrower may be required to maintain insurance coverage on the aircraft or equipment, protecting both parties' interests. 6. Governing Law: The agreement is governed by the laws of Rhode Island, ensuring compliance with state regulations and legal standards. It is essential to consult with legal professionals specializing in aviation and equipment financing when entering into a Rhode Island Security Agreement Regarding Aircraft and Equipment. These agreements provide protection and establish clear guidelines, benefiting both the lender and the borrower.
