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.
Title: Comprehensive Guide to Wisconsin Security Agreement Granting Security Interest in Aircraft Engines Description: In Wisconsin, a Security Agreement Granting Security Interest in Aircraft Engine is a legally binding contract that establishes a lien or security interest in an aircraft engine. This agreement serves to protect the interests of the lender or secured party while providing financing to the aircraft owner or borrower. Types of Wisconsin Security Agreement Granting Security Interest in Aircraft Engine: 1. General Security Agreement: This type of agreement allows the lender to secure its interest in the aircraft engine as collateral for a loan or any other financial transaction. It outlines the rights and obligations of both parties involved and ensures a smooth lending process. 2. Conditional Sale Agreement: This category of security agreement grants the lender a security interest in the aircraft engine until the borrower fulfills the repayment terms of the loan. Once the loan is fully repaid, the security interest is released. 3. Consignment Agreement: In cases where an aircraft engine is consigned to a party for sale or lease, a consignment agreement may be established. This agreement allows the lender to retain a security interest in the engine while it is under the consignee's possession. 4. Chattel Mortgage: A chattel mortgage involves creating a security interest in an aircraft engine using a mortgage-type agreement. It allows the lender to take possession of the engine if the borrower defaults on the loan payments. Keywords: Wisconsin, security agreement, aircraft engine, security interest, lender, secured party, financing, collateral, loan, repayment terms, consignment agreement, chattel mortgage, lien, borrowing, consignee, possession, default. Note: It is crucial to consult with an attorney or legal expert experienced in aviation and Wisconsin laws for accurate guidance and advice regarding Wisconsin Security Agreements Granting Security Interest in Aircraft Engines.
