August 26, 2013 – BATI Newsletter
BATI Weekly Quotes
You have brains in your head, you have feet in your shoes
You can steer yourself, any direction you choose.
The Phonetic Alphabet
*Not used in U.S.
BATI – FAA and IR Updates
September 16, 2013 is the implementation date for increased scrutiny and additional FAA paperwork requirements to register an aircraft to a U.S. Owner Trustee under a non-citizen trust.
The FAA has issued a policy clarification with respect to documentation required to be filed to support registration to a Non-Citizen Trust; the biggest changes are:
(a) The operating agreement must be submitted to the FAA.
(b) The trustee’s affidavit of citizenship should state that all documents affecting a relationship under the trust have been submitted to FAA.
(c) Sections of the Trust Agreement must be amended with respect to broadening the Owner Trustee’s control (to the exclusion of the Trustor’s control); the Owner Trustee must provide contact info for persons operating the aircraft within certain defined timeframes when asked to do so by FAA; Owner Trustee can be removed only for specific cause (cause must be spelled out in the trust agreement), etc.
After September 16, 2013, the FAA will not register aircraft in the name of an Owner Trustee without the revised trust agreement, the operating agreement and the Owner Trustee’s confirmation that all documentation affecting a relationship under the trust have been submitted to FAA. In order to assure registration of the aircraft in the name of an Owner Trustee, it is recommended that the Aeronautical Center Counsel’s Office in Oklahoma City be provided all documentation for review and approval before the documents are filed with the Civil Aircraft Registry. For questions about this matter, you should contact your aviation legal counsel, or our counsel: Jack Gilchrist, DeBee Gilchrist, Oklahoma City (Phone 405-232-7777)