A security interest in an aircraft engine can be perfected only in the manner required by federal law. Federal law excludes by preemption the recording of title to or liens against aircraft, so that a transfer that is not recorded under the federal system is not effective. Security Interests in Engines less than 550 horsepower are not eligible for recording. A security interest in an aircraft is perfected by filing with the Aircraft Registration Branch of the Federal Aviation Administration.
A Washington Security Agreement Granting Security Interest in an Aircraft Engine is a legally binding document that establishes a security interest in an aircraft engine located in Washington state. This agreement provides protection to a lender or creditor by securing their interest in the engine, ensuring that they have the right to possess and dispose of the engine in the event of default by the borrower or debtor. The Washington Security Agreement Granting Security Interest in Aircraft Engine is governed by Washington state laws regarding security interests and is categorized under the Uniform Commercial Code (UCC) Article 9. This agreement is applicable to various situations such as aircraft leasing, financing, or purchases involving aircraft engines. The Washington Security Agreement typically includes the following key elements: 1. Parties: It identifies the parties involved in the agreement — the lender/creditor (secured party) and the borrower/debtor (granter). 2. Description of Aircraft Engine: It provides specific details about the aircraft engine, including the make, model, serial number, and any other distinguishing characteristics. 3. Grant of Security Interest: The agreement clearly stipulates that the debtor grants the creditor a security interest in the aircraft engine. This grant ensures that the creditor has a legal right to the engine and can claim possession or dispose of it if the debtor fails to meet their obligations. 4. Rights and Obligations: The agreement outlines the rights and responsibilities of both parties. These include the debtor's obligation to make payments, maintain the engine, and ensure it remains free from any other liens or claims. The agreement may also define the creditor's rights to inspect or access the engine. 5. Default and Remedies: In the event of default, the agreement details the actions that the secured party is entitled to take. This may include repossession, sale, or enforcement of the security interest. 6. Governing Law: The agreement specifies that it is governed by the laws of Washington state, establishing jurisdiction and the legal framework for any disputes. Types of Washington Security Agreement Granting Security Interest in Aircraft Engine: 1. Capital Finance: A security agreement used by financial institutions to secure loans or credit facilities provided to aircraft owners, operators, or maintenance companies for purchasing or maintaining aircraft engines in Washington. 2. Lease Financing: This type of security agreement is used when a lessor grants a lease for an aircraft engine, and the lessee grants a security interest in the engine to secure the lessor's rights. 3. Repair and Maintenance Financing: A security agreement used to secure loans or credit provided to aircraft owners or operators to cover expenses related to the repair, maintenance, or overhaul of aircraft engines in Washington state. In conclusion, a Washington Security Agreement Granting Security Interest in an Aircraft Engine is a crucial legal document used in aviation financing and leasing transactions to protect the interests of lenders or creditors. It ensures that a security interest is established in the aircraft engine and enables the secured party to take appropriate actions in case of default.
