Aircraft as Collateral - UCC Financing Statement

Answered by:

Question:

In addition to filing a lien with FAA when taking an aircraft as collateral, would it also be prudent to file a UCC Financing Statement, or is that overkill?

Answer:

I understand Section 9-311 to say that filing with the FAA on the aircraft supercedes the need to file under Article 9. Although I didn't see a specific reference, I want to say that we did file a UCC on certain avionics that my have been separate from the aircraft. This would also apply to logs, books and manuals that need to be with the aircraft. As to your question on the aircraft itself, I don't think the UCC filing would be effective.

First published on BankersOnline.com 8/15/05