FAA and International Registry Issues: FAA and International Registry Issues: Filings, Closings, Opinions and other Filings, Closings, Opinions and other
Sundry ItemsSundry Items
Erin M. Van Laanen, Esq.Erin M. Van Laanen, Esq.
McAfee & Taft, P.C.McAfee & Taft, P.C.
Phone: 405-552-2208Phone: 405-552-2208
Fax: 405-235-0439Fax: 405-235-0439
Email: Email: [email protected]@mcafeetaft.com
August 8-9, 2008, ABA New YorkAugust 8-9, 2008, ABA New York
Status of Transition FAA Registry Status of Transition FAA Registry Modernization System (RMS)Modernization System (RMS)
Transition began 2/25/08Transition began 2/25/08 Backlog of documents to be processed has been Backlog of documents to be processed has been
substantially reduced substantially reduced Fly wires, exports and imports are being processed in a Fly wires, exports and imports are being processed in a
more timely mannermore timely manner Substantial issues still exist with getting complete, reliable Substantial issues still exist with getting complete, reliable
records records Turnover of staff/new FAA examiners require constant Turnover of staff/new FAA examiners require constant
double checking double checking
FAA Transportation Code: Transfers of FAA Transportation Code: Transfers of Owner Participant InterestsOwner Participant Interests
Issue: Transfer of owner participant interest under owner Issue: Transfer of owner participant interest under owner trust; closing occurs outside of FAA Registry business trust; closing occurs outside of FAA Registry business hourshours
Can the closing occur without simultaneous FAA filing ?Can the closing occur without simultaneous FAA filing ? If so, is the aircraft registration adversely affected?If so, is the aircraft registration adversely affected? FAR language: FAR language: “each applicant must submit a copy of each “each applicant must submit a copy of each
document legally affecting a relationship under the trust”document legally affecting a relationship under the trust”
ACC opinion: No mail box rule is applicable; no effect on ACC opinion: No mail box rule is applicable; no effect on registrationregistration
Result: closings outside of FAA hours are permittedResult: closings outside of FAA hours are permitted
FAA Transportation Code: Citizenship FAA Transportation Code: Citizenship test requires “actual control”test requires “actual control”
Issue: Whether companies meet the citizenship test of Issue: Whether companies meet the citizenship test of “actual control” ?“actual control” ?
Transportation Code language: …Transportation Code language: …which is under the actual control of citizens of the United States
Voting trust agreements: used when the ownership of an Voting trust agreements: used when the ownership of an entity is not controlled by US citizensentity is not controlled by US citizens
Is the actual control test met ?Is the actual control test met ? What about owner trust?What about owner trust? What about Based & Primarily Used exception?What about Based & Primarily Used exception?
Cape Town: Helicopter EnginesCape Town: Helicopter Engines
Issue: Whether helicopter engines are Issue: Whether helicopter engines are covered by the Cape Town Treatycovered by the Cape Town Treaty
Convention language: yes and no; depends Convention language: yes and no; depends on where the engine is, what it is attached on where the engine is, what it is attached to, what time of day it is, whether it’s a bird to, what time of day it is, whether it’s a bird or a planeor a plane
Solution: ? Solution: ?
Cape Town: Informational SearchesCape Town: Informational Searches
Issue: Searches must be EXACTIssue: Searches must be EXACT Opinion assumption:Opinion assumption: search requires exact manufacturer, model and serial search requires exact manufacturer, model and serial
number; any variance is fatal; a space, comma, dash, capitalization, added number or number; any variance is fatal; a space, comma, dash, capitalization, added number or character, missing number or character; result: there may be registrations which are not character, missing number or character; result: there may be registrations which are not reflected on the Priority Search Certificates, reflected on the Priority Search Certificates, which may have prioritywhich may have priority over subsequent over subsequent registrations on the IRregistrations on the IR
New search ability: Limited informational searches are now New search ability: Limited informational searches are now available, but they are not always complete available, but they are not always complete
Removal of opinion assumption: Probably notRemoval of opinion assumption: Probably not
Cape Town: Informational SearchesCape Town: Informational Searches
Cape Town: Informational SearchesCape Town: Informational Searches
Cape Town: Consents to Cape Town: Consents to Registrations Registrations
Two types of “consents”Two types of “consents” PUE/TUE “mechanical” IR consentsPUE/TUE “mechanical” IR consents Contractual consent still required pursuant to the Contractual consent still required pursuant to the
TreatyTreaty Good business practice to require a writing for the Good business practice to require a writing for the
filefile
FAA Aircraft Deregistration – Cape FAA Aircraft Deregistration – Cape TownTown
Article XIII - provides for Irrevocable De-Registration and Article XIII - provides for Irrevocable De-Registration and Export Request Authorization (“IDERA") (opt in)Export Request Authorization (“IDERA") (opt in)
IDERA is filed with the FAA when a transaction closesIDERA is filed with the FAA when a transaction closes Upon defaultUpon default, request to deregister is made by the holder , request to deregister is made by the holder
of the IDERA (the secured party)of the IDERA (the secured party) Be sure that there is a default; it not, IDERA needs to be Be sure that there is a default; it not, IDERA needs to be
terminated terminated
International Registry – RegistrationsInternational Registry – Registrations
Drop down list of TUE’s – not accurateDrop down list of TUE’s – not accurate– TUE is listed but the account is not valid or is TUE is listed but the account is not valid or is
dysfunctional dysfunctional – Discharges – issues with some TUE’s – can’t discharge Discharges – issues with some TUE’s – can’t discharge
an international interestan international interest
Illegal Charter OperationsIllegal Charter Operations
From the NBAA website: Due to a lack of inspectors, an From the NBAA website: Due to a lack of inspectors, an illegal charter hotline has been created illegal charter hotline has been created
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