Once an aircraft loan has been approved by your
aircraft lending source, you will need to provide them with information on the
collateral such as an Aircraft Specification Sheet, recent aircraft pictures,
copies of various logbook entries including verification of a current Annual
Inspection, pre-purchase inspection signed by an A & P mechanic or FAA approve
Repair Facility, and a title search from a recognized title & escrow
company in Oklahoma City, OK.
Once it’s
determined a particular aircraft is being purchased, the lender will request
address information regarding how an owner desires to register the aircraft
(cannot be a P.O. Box unless accompanied by a physical address too) and
addresses where to send routine mail out to along with overnight location of
delivery if different from the aircraft registration address.
Loan
documents are prepared and generally include a Note which outlines the interest
rate, term, loan proceeds amount, etc., a Security Agreement which gets filed
with the FAA to place the lien on the aircraft, an Agreement to Provide
Insurance Form, Loan Disbursement Form, an Errors & Omissions Power of
Attorney Form, and possibly a few other misc. lender items.
Once the
lender has receive all original signature loan documents back from the customer
and the title company confirms there are either no liens on record and/or they
have all original signature lien release(s) in escrow along with an original
Aircraft Registration 8050-1 Form, FAA Bill of Sale(s) and lender’s Security
Agreement, and possible other misc. items, and the down payment funds have been
received in full, then a closing/funding may take place.
Fundings
are almost exclusively accomplished via a wire transfer to the title company or
seller if no title company is involved.
The buyer will send a final authorization request to the lender for
final disbursement. Wires cannot be sent out on weekends, late afternoons or
evenings due to wire cut-off times as the Federal Reserve must be open for
transfers.
