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.
Phoenix Arizona Security Agreement Granting Security Interest in Aircraft Engine is a legal document that outlines the terms and conditions for securing interest in an aircraft engine in Phoenix, Arizona. This agreement is crucial for protecting the lender's investment and ensuring repayment of financial obligations. A security agreement in Phoenix, Arizona can be categorized into various types, including: 1. General Security Agreement: This is a common type of agreement that grants a lender a security interest in the borrower's aircraft engine, providing the lender with priority rights in case of default or bankruptcy. 2. Specific Security Agreement: This type of agreement grants a lender a security interest in a particular aircraft engine, identified by its serial number or other unique identifiers. It ensures that the lender has a specific claim on that specific engine. 3. Floating Security Agreement: This agreement can be used when multiple aircraft engines are involved. It allows the lender to claim an interest in a fluctuating inventory of aircraft engines as collateral, while still maintaining a priority right in case of default. The Phoenix Arizona Security Agreement Granting Security Interest in Aircraft Engine typically includes the following essential elements: 1. Parties Involved: Names and addresses of both the lender (secured party) and the borrower (debtor), clearly identifying their roles and responsibilities. 2. Description of the Aircraft Engine: Detailed identification information about the aircraft engine, such as its make, model, serial number, and any other necessary specifics. 3. Grant of Security Interest: A clear statement that the borrower grants the lender a security interest in the aircraft engine to secure the performance of the borrower's obligations. 4. Obligations Secured: A comprehensive listing of the obligations the borrower owes the lender, such as the repayment of a loan or the fulfillment of certain conditions. 5. Collateral Description: A precise description of the collateral — the aircrafenginein— - including all relevant details, ensuring there is no ambiguity. 6. Default and Remedies: The agreement should outline the events that constitute a default, such as non-payment or violation of other terms, and the actions the lender can take in case of default, including seizing and selling the aircraft engine. 7. Governing Law: The agreement should specify that it is governed by the laws of Phoenix, Arizona, ensuring consistency with local regulations. 8. Signatures and Revisions: The document must include spaces for both parties' signatures, date of execution, and provisions for making revisions or amendments in the future. In conclusion, a Phoenix Arizona Security Agreement Granting Security Interest in Aircraft Engine is a vital legal document that safeguards the interests of lenders and borrowers involved in aircraft engine financing. Its specific type can vary depending on the context, such as whether it is a general, specific, or floating security agreement.
