Filing Security Agreement with Faa

Filing Security Agreement with FAA: A Guide for Aircraft Owners

As an aircraft owner, it’s important to ensure that your plane is protected at all times. One way of doing this is by filing a Security Agreement with the Federal Aviation Administration (FAA). This agreement helps establish a lien on the aircraft, which provides an added layer of security for lenders, and ensures that you hold legal ownership of the plane. In this article, we’ll walk you through the process of filing a Security Agreement with the FAA.

What is a Security Agreement?

A Security Agreement is a legal document that establishes a lien on the aircraft and ensures that the lender holds priority over any other claims on the asset. By filing this document with the FAA, the lender can secure their interest in the aircraft, and the aircraft owner can obtain financing for the purchase of the plane.

Why File a Security Agreement?

A Security Agreement is beneficial for both the lender and the aircraft owner. For the lender, this document provides security and ensures that they hold first priority over the aircraft, in the case of bankruptcy or default. For the aircraft owner, the Security Agreement secures financing and can help reduce the interest rate on loans, as the lender has more confidence in the borrower.

How to File a Security Agreement with the FAA

To file a Security Agreement with the FAA, you will need to follow the steps outlined below:

Step 1: Obtain a form – The FAA provides a specific form for filing a Security Agreement. This form is called the FAA Form 8050-135.

Step 2: Complete the form – The form requires the aircraft owner to provide basic information about the plane, such as the make and model, serial number, and registration number. The lender will also need to provide their name and address, as well as the amount of the loan.

Step 3: Submit the form – Once the form is complete, it must be submitted to the FAA Registry in Oklahoma City. The filing fee for the Security Agreement is $5.

Step 4: Await confirmation – The FAA will process the Security Agreement and provide confirmation to both the lender and the aircraft owner.

Conclusion

Filing a Security Agreement with the FAA is a necessary step for aircraft owners who wish to secure financing for their plane. By establishing a lien on the aircraft, the lender can ensure that they hold priority over any other claims on the asset. For aircraft owners, this agreement provides added security and can help reduce the interest rate on loans. By following the steps outlined in this article, you can file a Security Agreement with ease and protect your investment.