Can this agreement be signed electronically?

Yes. Electronic signatures are valid under the federal ESIGN Act (15 U.S.C. ch. 96) and by UETA in most states provided the parties consent, intent to sign is demonstrated, attribution is recorded, and the record is retained in reproducible form.

Is notarization required for FAA recordation?

FAA recordation accepts instruments in prescribed formats; whether a notarization is required depends on instrument type and FAA instructions. Confirm FAA Aircraft Registry guidance before relying on an unnotarized electronic instrument.

How is priority established among competing creditors?

Priority is generally established by proper perfection—timely FAA recordation for aircraft and UCC‑1 filings for other collateral—subject to UCC Article 9 rules and relevant state law.

What happens if names do not match on filings?

Name mismatches can render financing statements seriously misleading. Correctly matching the debtor's legal name is essential; errors may cost priority and require corrective filings or court action.

Is remote online notarization acceptable?

Many states permit RON with identity proofing and audio‑video recording retention; check state notary law because requirements and availability vary and some states limit or exclude RON.

When should counsel be consulted?

Consult counsel before final execution whenever parties are unfamiliar with aviation recordation, cross‑border issues, complex ownership structures, or when expedited enforcement and priority are material to the transaction.

Electronic Signature
Templates
Legal
Aircraft Security Agreement

Aircraft Security Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What an Aircraft Security Agreement Is and when it applies

An Aircraft Security Agreement is a written contract that creates a security interest in an aircraft or related equipment to secure repayment of an obligation. It identifies debtor and secured party, describes the aircraft collateral (manufacturer, model, serial number, N-number), and sets out rights on default. The agreement establishes perfection steps under UCC Article 9 and recordation practices used in aviation finance, including FAA recordation and any necessary state filings. Properly executed, it clarifies priority, remedies, and enforcement procedures for lenders, lessors, and owners.

Why an aircraft security agreement matters to lenders and owners

It creates and documents a legally enforceable lien, clarifies priority among creditors, permits repossession and sale on default, and supports FAA or state recordation necessary for third-party notice. Electronic execution under ESIGN and UETA preserves enforceability when consumer-disclosure and retention requirements are met.

Typical parties that prepare or sign this agreement

The document is used in aviation finance, leasing, and secured sales where collateral is aircraft or related equipment.

Lenders and lessors who need a perfected security interest and clear enforcement rights.
Aircraft owners and operators documenting liens, subordination, or release terms for aircraft collateral.
Title agents, escrow agents, and legal counsel coordinating recordation with the FAA Aircraft Registry.

Parties should confirm signatory authority and follow recordation steps to protect priority and avoid costly disputes.

Representative signatories and their roles

Secured Lender

Head of secured lending or counsel who verifies debtor identity, reviews collateral description, confirms perfection steps under UCC Article 9, and ensures FAA recordation or UCC‑1 financing statement filing where applicable.

Aircraft Owner

Owner or authorized corporate officer who confirms legal name, authority to grant a security interest, acknowledges consideration, and executes signature and notary blocks as required for recordation or enforcement.

Core sections to include in a professional Aircraft Security Agreement

A complete agreement balances legal precision with clear practical steps for perfection and enforcement. Include these six sections to reduce ambiguity and support recordation.

Parties

Full legal names of debtor and secured party; entity type and jurisdiction of formation.

Collateral

Detailed aircraft description: manufacturer, model, serial number, registration (N-number) and accessories.

Security Grant

Language granting a security interest in described collateral, including after‑acquired property if applicable.

Obligations

Debt or payment obligations secured by the agreement and events of default.

Perfection

Steps for perfection and priority: FAA recordation, UCC‑1 filing, and any required notices.

Remedies

Accelerations, repossession, sale procedures, and rights after default, consistent with UCC and applicable law.

Essential data elements to collect

Debtor Name: Exact legal name

Secured Party: Legal entity name

Aircraft ID: Manufacturer, model, serial

Registration Number: U.S. N-number

Obligation Amount: Principal sum

Effective Date: MM/DD/YYYY

Step-by-step: completing the Aircraft Security Agreement

Follow these four steps to prepare, execute, and perfect a security interest in an aircraft.

01

Prepare: Draft agreement with full collateral description and repayment terms.
02

Review Authority: Confirm signatory authority and entity formation documentation.
03

Execute: All parties sign; notarize where required or use permitted RON process.
04

Perfect: Record with FAA Registry and file UCC‑1 where appropriate to protect priority.

Typical digital workflow settings for online completion

Configure a signing workflow that captures identity, audit trail, and a tamper-evident final PDF for FAA or UCC submission.

Field	Configuration
Authentication Method	Email link or SMS code; use strong auth for lenders.
Signature Order	Sequential signing to ensure lender signs last or as agreed.
Attachments Required	Attach aircraft title, bill of sale, and corporate resolutions.
Retention Policy	Retain signed record for statutory period; export immutable PDF/A copy.

Digital signing and e‑submission workflow overview

Online completion shortens turnaround but must preserve identity evidence and the audit trail for FAA and UCC purposes.

Prepare Document: Upload template, insert fields, and attach supporting documents.
Invite Signers: Send secure signing links or use bulk send for multiple counterparties.
Authenticate: Use email, SMS, or stronger ID verification for high-value transactions.
Record: Export signed PDF with certificate; submit to FAA Registry and file UCC‑1 as applicable.

Technical requirements for electronic execution and submission

Choose a platform that creates an audit trail, supports PDF exports, and meets industry compliance requirements.

Document Formats: PDF and Word DOCX are standard for recordation and archiving.
Integrations: Connectors for NetSuite, Salesforce, and Google Workspace simplify document routing.
Authentication: Supports email links, SMS codes, and optional KBA or two‑factor methods.

Ensure the chosen platform provides tamper-evident PDFs, exportable audit reports, and export formats accepted by FAA or county recorders.

Timing considerations and common deadlines

Follow prompt execution and recordation practices to protect priority and minimize risk of intervening liens or claims.

Effective Date:

Date of execution governs obligations and priority calculations.

FAA Recordation:

Record as soon as possible after execution to provide public notice.

UCC Filing:

File UCC‑1 where applicable to support state-level perfection.

Cure Periods:

Contract may specify cure periods before acceleration or repossession rights.

Retention:

Maintain records according to regulatory and tax retention schedules.

Key milestones from negotiation to enforcement

A sequential view helps coordinate counsel, title, and registry actions to preserve priority.

01

Drafting

Agree collateral description and borrower covenants before execution.

02

Execution

Signatures, dates, and notarization or RON completed by authorized signers.

03

Recordation

Submit instrument to FAA Registry and file UCC‑1 financing statements as needed.

04

Enforcement

On default, follow remedies and sale procedures consistent with UCC and contract terms.

Common mistakes that delay perfection or create disputes

Using an incomplete aircraft description that fails FAA or UCC requirements, requiring corrections and re‑filing.
Mismatched debtor or secured party names between the agreement and filing documents, causing challenges to priority.
Omitting required supporting documents such as bills of sale or corporate resolutions for entity signers, slowing title verification.
Assuming remote notarization is accepted without confirming state or FAA acceptance, which can invalidate recordation.

Consequences of an incorrect or incomplete agreement

Loss of Priority: Competing lien may take precedence

Unenforceable Lien: Court may deny enforcement

Filing Rejection: Registry returns incomplete instruments

Increased Costs: Additional legal and filing fees

Operational Disruption: Aircraft use restricted during disputes

Litigation Risk: Potential damages and injunctions

Practical examples of how the agreement is used

Two typical scenarios illustrate drafting, execution, and recordation choices in real transactions.

Lender Financing

A regional bank provides purchase financing for a turboprop

Lender requires detailed serial and N-number information to perfect the lien
After execution the lender records the security instrument with the FAA and files a UCC‑1 to preserve priority; digital execution and a notarized signature speed closing while preserving enforceability.

Lease with Security

An aircraft lessor takes a security interest to secure lease obligations

Lessors include repossession procedures and insurance covenants in the agreement
The lessor coordinates execution, obtains a corporate resolution, and records the security interest to ensure effective remedies on lessee default.

Frequently asked questions about Aircraft Security Agreements

Answers to common execution, recordation, and enforceability questions for practitioners and transaction parties.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are valid under the federal ESIGN Act (15 U.S.C. ch. 96) and by UETA in most states provided the parties consent, intent to sign is demonstrated, attribution is recorded, and the record is retained in reproducible form.
Is notarization required for FAA recordation?
FAA recordation accepts instruments in prescribed formats; whether a notarization is required depends on instrument type and FAA instructions. Confirm FAA Aircraft Registry guidance before relying on an unnotarized electronic instrument.
How is priority established among competing creditors?
Priority is generally established by proper perfection—timely FAA recordation for aircraft and UCC‑1 filings for other collateral—subject to UCC Article 9 rules and relevant state law.
What happens if names do not match on filings?
Name mismatches can render financing statements seriously misleading. Correctly matching the debtor's legal name is essential; errors may cost priority and require corrective filings or court action.
Is remote online notarization acceptable?
Many states permit RON with identity proofing and audio‑video recording retention; check state notary law because requirements and availability vary and some states limit or exclude RON.
When should counsel be consulted?
Consult counsel before final execution whenever parties are unfamiliar with aviation recordation, cross‑border issues, complex ownership structures, or when expedited enforcement and priority are material to the transaction.

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