Recognition of Ownership Rights of Engines and Airframes

Abstract

A lender's right to repossesion is established by the underlying loan documents and applicable state law: generally, the state's version of the Uniform Commercial Code (UCC). Poorly drafted loan documents can slow down, or even prevent, the lawful seizure of the aircraft. A careful review of the loan documents is the first step to a successful repossession. A stringent auditing and follow up on the lessee’s compliance to agreement and ability of operation of the asset is equally important.