Enforcement Of Security Over An Aircraft

Introduction

In the current economic climate the possibility of defaults under loans secured on aircraft is an increasing concern for aircraft financiers. It is of course important to note that a security package will vary depending on the context of the particular aircraft financing transaction, and may include security documents such as an aircraft mortgage, a charge over the aircraft's maintenance reserves, a charge over shares in the borrower, a charge over shares in the guarantor for the borrower, an assignment of airframe and engine warranties in favour of the financier and an assignment of insurances to the benefit of the financier.

This paper provides a brief overview of some important considerations in the context of a financier with a security interest as mortgagee acknowledging the challenges posed by the multi-jurisdictional nature of the aviation industry to the enforcement of a financier's security over an aircraft. A financier wishing to enforce its