Taking security over aircraft—registration, priority and enforcement
Produced in partnership with Norton Rose Fulbright
Taking security over aircraft—registration, priority and enforcement

The following Banking & Finance guidance note Produced in partnership with Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Taking security over aircraft—registration, priority and enforcement
  • Registration of aircraft mortgages
  • Priority, claw-back and enforcement
  • Finance leases

Registration of aircraft mortgages

Aircraft and engine mortgages created by a company incorporated and registered in England and Wales are registrable at Companies House (section 859A of the Companies Act 2006 (CA 2006)). Failure by a relevant company to register an aircraft mortgage or engine mortgage within the 21-day deadline will result in the mortgage being void against any liquidator of the company. This requirement does not apply to a foreign company granting a mortgage governed by English law.

For aircraft which are registered in the United Kingdom, to preserve priority, the aircraft mortgage should also be registered on the UK Aircraft Mortgage Register maintained by the UK Civil Aviation Authority (UK CAA) (for more information on the registration of the aircraft itself see Practice Note: Registration of aircraft—initial registration and deregistration). The UK CAA Aircraft Mortgage Register and aviation authorities in most other jurisdictions will not separately register an independent security interest in an engine. One of the notable exceptions is the US Federal Aviation Authority (FAA) which allows separate registration of security over engines.

Each jurisdiction has its own requirements for the registration of mortgages and consequences of failure to register. For example:

  1. failure to register an aircraft mortgage with the FAA register (applicable only for US-registered aircraft) means that the mortgage will only be valid against