The most difficult thing is the decision to act, the rest is merely tenacity.
Amelia Earhart – Pilot
Earhart was the first female aviator to fly solo across the Atlantic Ocean. She received the U.S. Distinguished Flying Cross for this record.
Temporary Certificates of Registration for International Operations
Pink copy of the Aircraft Registration Application
is carried on board the aircraft after ownership of an aircraft changes and acts as temporary authority to operate the aircraft domestically in lieu of registration as long as evidence of ownership and Aircraft Registration Application are delivered to the FAA.
The pink copy of the application may be used for operation of aircraft within the U.S. If the aircraft is not registered within 90 days, a letter of extension may be furnished to the applicant, which must be carried in the aircraft with the pink copy of the application. Article 29 of the Convention on International Civil Aviation provides that every aircraft of a contracting state engaged in international navigation shall carry its Certificate of Aircraft Registration. Therefore, other countries are not required to recognize the pink copy of the application or the letter of extension. Pink slips are not valid for international operation of an aircraft.
Temporary Certificate of Registration (the “fly wire”)
This is a temporary certificate of the registration – the FAA issues this after it has expedited processing the Aircraft Registration Application and evidence of ownership (usually within 24 to 48 hours, rather than the usual wait for the backlog). Fly wires are valid for international operations because they are evidence that the aircraft is registered in the United States.
Before the FAA will expedite registration for purposes of immediate international flight, the Registry requires a “Declaration of International Operations” form be submitted to the Registry, signed by the owner of the aircraft.
This forms states:
- The name of the departure city in the United States
- The name of the destination city in the foreign country
- The specific date of the flight
- A statement confirming that the signatory of this document is aware that whoever, in any matter within the jurisdiction of the executive branch of the Government of the United States, knowingly and willfully makes or uses any false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or representation shall be fined under Title 18 United States Code or imprisoned not more than year years, or both. 18 U.S.C. 1001(a).
If documents have been in process for a few days it is still possible to submit the Declaration of International Operations (by fax will do) and the Registry will associate your request for expedited registration in the in-process documents.
Interestingly, if the FAA does not receive the Declaration of International Operations with sufficient lead-time to issue the fly wire on or before the stated date of the international flight, the registration process falls back into the routine processing batches. The FAA will process a new Declaration which the owner must re-submit with a specific international flight sometime in the near future if the aircraft is rescheduled for another international flight.
Is a flight from the mainland United States to Hawaii considered an “international Flight”?
Yes. The opinion of the Aeronautical Center Counsel’s office is that U.S. civil aircraft which commence operation from within the United States and proceed outside the United States (12 nautical miles from the coast of the United States or over a foreign country’s airspace) must carry a certificate of aircraft registration.
Please note: The Aeronautical Center Counsel’s office has specifically opined that any direct flight from the United States to a territory or possession of the United Sates, or vice versa, must have aboard a certificate of aircraft registration; and
Direct flights from a state in the contiguous United States to Alaska or Hawaii, or vice versa, must have aboard a certificate of aircraft registration.
BATI is happy to provide a form of Declaration of International Operations to our clients!
I can’t understand why people are frightened by new ideas. I’m frightened by old ones!
– John Milton Cage, Jr. – Composer, music theorist, writer and artist
Can there ever be enough written about Limited Liability Companies?
It is one of the most confusing issues the FAA has dealt with to date.
The FAA needs to know the following about limited liability companies:
- The full name of the LLC
- The State in which the LLC is lawfully organized;
- The name of each of the members of the LLC and the type of entity of each member;
- Whether the LLC is managed by its members, managers or officers;
- The name of the managers or officers, if applicable, and type of entity;
- Whether the members, managers or officers may act independently;
- And: the citizenship status of each member and each manager, or officer.
If the applicant LLC includes a member and/or manager that is also an LLC, the above documentation must also be provided for the member LLC.
If the management of the LLC changes at a later date (e.g. originally managed by members, but now by a manager) the Registry must receive written notice of the change. This may be submitted in the form of a written statement, a copy of minutes of a meeting, an amended operating agreement, etc. The submitted document must explain any changes or additions made and give the effective date of those changes or additions.
Acceptable Titles for Signing LLC Documents
If an LLC is managed by its Members, the FAA will accept only documents signed with the title “Member”.
If an LLC is managed by a manager, the FAA will accept any title which includes the word “manager” (e.g. managing member, member manager, etc). Member alone or corporate type titles (President, Vice-President, etc.) would be unacceptable.
An exception to the above rules would be if the LLC documentation shows to be managed by a managing member. Member alone or Manager alone would be acceptable.
If an LLC is managed by officers, and the specific officers’ titles are shown (i.e. president, vice-president, secretary-treasurer, etc) the FAA will accept only those titles. In this case neither “manager” or “member” would be acceptable. If an LLC is managed by officers and no specific titles are shown, then any officer can sign.
If an LLC is managed by a Board of Governors, the FAA will accept the title “Governor”. In this case no other titles would be acceptable.
Please note: If multiple bills of sale are submitted which only “pass through” the LLC and the signer shows a title of Manager or a corporate title, the FAA will not ask for further LLC documentation. If however the signer shows a title of “Member” the FAA will request documentation showing that the member is the appropriate signatory.
Prior to September 1999 LLC documentation was not required when registration documents were signed showing a corporate or managerial title. Corporate or managerial titles on subsequent documents for that aircraft are acceptable without requesting LLC documentation. If subsequent documents are signed showing the title “member” then the FAA will ask for further LLC documentation showing that member is the appropriate signatory.
I find that the harder I work the more luck I seem to have!
What will the FAA accept in the way of documentary evidence of a bank’s name change?
National Banks, Federal Credit Unions, Federal Savings Banks
- Certified copy of the resolution by the Board of Directors changing the name.
- Certified copy of the amendment to the articles of association reflecting the name change.
- Copy of Banking Bulletin advertising the change of name (national banks).
- Certified copy of the name change filed in the local courthouse.
- An affidavit by an officer of the national bank, federal savings and loan association, federal savings bank, or federal credit union, certifying the change.
- Please note: this affidavit must be by an officer of the successor bank and
must show the effective date of the change (if more than one name change
is involved, then this affidavit must show each effective date!)
- Please note: this affidavit must be by an officer of the successor bank and
- A copy of the notice to the Comptroller of the Currency of the effective date of the change (national banks).
If a STATE BANK is involved, the original, certified copy, or photocopy of the certificate issued by the appropriate state banking authority is acceptable.
INTERNATIONAL REGISTRY UPDATE
Aviareto has been reappointed as Registry for the International Registry
In June 2014 the Council of ICAO decided to reappoint Aviareto as the Registrar for the International Registry for a third term from 2016 to 2021.
The folks at Aviareto have announced that in June they reached a significant milestone – half a million registrations since the IR went live in 2006 – in an average month they process around 7000 registrations.
A new contracting state: Kingdom of Bhutan has acceded to the Convention and Protocol (effective on November 1, 2014).
There are a few new features to the IR website:
The IR will no longer ask for Registration Numbers – Nationality and Registration Marks field will be removed from the registration details screen on the International Registry Website.
Change from “Contract of Sale” to “Sale” – Throughout the IR website, the label “Contract of Sale” will be replaced with “Sale”, and the label “Prospective Contract of Sale” will be replaced with “Prospective Sale”.
Business Aircraft Title International, Inc.
100 North Broadway Ave., Suite 1500
Oklahoma City, OK 73102
The question isn’t who is going to let me; it’s who is going to stop me!
N-Numbers and the FAA
The U.S. received the “N” as its nationality designator under the International Air Navigation Convention held in 1919. The convention prescribed an aircraft-marking scheme of a single letter indicating nationality followed by a hyphen and four identity letters (for example, G-REMS). The five letters together were to be the aircraft’s radio call sign. Since the U.S. did not ratify the 1919 Convention use of the markings was voluntary and the markings were generally only used on aircraft operating internationally. The United States had radio call letters N, K and W exclusively for its use and so N’s were chosen as our nationality mark – it was the radio call sign of the United States Navy.
No mention of N-numbers appeared in the initial Air commerce Act which caused the Department of Commerce to create the Civil Aeronautics Branch, the first predecessor to the FAA. The first mention of N-numbers is found in a 1927 amendment to the Air Commerce Regulations, mandating that any U.S. aircraft engaged in foreign air commerce display the N at the beginning of its identification markings. Later this requirement was extended to all U.S. aircraft no matter where they were operated.
A second letter was then required, indicating the aircraft’s airworthiness category following the N: that is: “C” for standard, “R” for restricted; “X” for experimental and “L” for limited – and this was the rule until 1948 when the requirement for the second letter following the “N” was dropped.
In l934 the Civil Aeronautics Act transferred the civil aviation responsibilities from the Commerce Department to a new independent agency: the Civil Aeronautics Authority. In 1940 the Civil Aeronautics Authority was split into two groups: The Civil Aeronautics Administration (CAA) and the Civil Aeronautics Board (CAB).
The approaching introduction of jet airliners and a series of midair collisions spurred passage of the Federal Aviation Act of 1958 and created the Federal Aviation Agency.
The Federal Aviation Agency became the Federal Aviation Administration when the Department of Transportation was created in 1967. Concurrently with the implementation of the FAA, the previous accident investigation function of the Civil Aeronautics Board was transferred to the new National Transportation Safety Board.
The above information was gleaned (and paraphrased) from the FAA’s website: A history of N-Numbers and A Brief History of the FAA! Found at FAA.gov
BATI POT POURRI
WHATEVER IT TAKES
COMPLETELY HAPPY CUSTOMERS*
Sharon Hoaglin Schroeder, President
Lisa A. Gaskin, Vice-President
*Definition of Completely Happy Customers:
- making sure we are available to our customers 24/7
- making sure our customers feel they are getting the most value from their aircraft title dollars;
- making sure our customers’ transactions are embraced with the utmost urgency;
- making sure our customers know how much they are appreciated;
- making sure that every transaction is handled timely and with great efficiency;
- making sure our customers become freinds and are relived to find a service like ours!
Aircraft Title Services
Aircraft Title Searches… N-Number Reservations and Assignments… Escrow and Filing Services… International Regisrty Representation and Services… Title Clearing Services
Business Aircraft Title International, Inc.
100 North Broadway, Suite 1500, Oklahoma City, Ok 73102
Sharon Hoaglin, President, direct: 405-593-7753,
Lisa Gaskin, Vice-President, direct: 405-628-7663,
Today you are you! That is truer than true! There is no one alive who is you-er than you! Make the Most of YOU Today!
Pink Copies vs. Fly Wires
The pink copy of the Aircraft Registration Application is carried on board the aircraft after ownership of an aircraft changes and acts as temporary authority to operate the aircraft domestically in lieu of registration, as long as evidence of ownership and application for registration are delivered to the FAA and are in their system.
The pink copy of the application may be used for operation of aircraft within the U.S. If the aircraft is not registered within 90 days, a letter of extension may be furnished to the applicant which must be carried in the aircraft with the pink copy of the application for registration. Article 29 of the Convention on International Civil Aviation provides that every aircraft of a contract state engaged in international navigation shall carry on board its Certificate of Aircraft Registration. Pink slips are not valid for international operation of an aircraft.
The “Fly Wire” is a temporary certificate of registration – the FAA issues this after it has expedited processing the registration application and evidence of ownership (usually within 24 to 48 hours, rather than the usual 4 to 5 weeks of routine processing.
Fly wires are valid for international operation because they are evidence that the aircraft is registered in the United States.
Before the FAA will expedite registration for purposes of immediate international flight, the Registry requires a “Declaration of International Operations” (“DOIO”) form be submitted to the Registry, signed by the owner of the aircraft. This form states:
(a) the name of the departure city in the US
(b) the name of the destination city in the foreign country
(c) the specific date of the flight
(d) a statement confirming that the signatory on this document is aware that whoever, in any matter within the jurisdiction of the executive branch of the Government of the United States, knowingly and willfully makes or uses any false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or representation shall be fined under Title 18 United Sates Code or imprisoned not more than five years, or both. 18 U.S. C. 1101(a).
What if an international flight crops up after I have already filed documents with FAA?
If documents have been in process at the FAA for a few days, it is still possible to submit the DOIO (the Registry will take a faxed copy) and will associate your request for expedited registration with the in-process documents.
What happens if the FAA doesn’t register the aircraft by the date of the international flight?
Interestingly, if the FAA does not receive the DOIO with sufficient lead-time to issue the fly wire on or before the stated date of the international flight, the registration process falls back into the routine processing batches. The FAA will process a new DOIO which the owner must re-submit with a specific date for the international flight sometime in the near future if the aircraft is rescheduled for another international flight.
Is a flight from the mainland United States to Hawaii considered an “international flight”?
Yes! The opinion of the Aeronautical Center counsel’s office is that a U.S. civil aircraft which commences operation from within the United States and proceeds outside the United States (12 nautical miles from the coast of the United States or over a foreign country’s airspace) must carry on board a certificate of aircraft registration (or a “fly wire”).
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Business Aircraft Title International, Inc.
Aircraft Title Searches
Document Filing at FAA
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Sharon Schroeder – firstname.lastname@example.org
Great spirits have always encountered violent opposition from mediocre minds.
Types of Registration
One person owns the aircraft and applies for registration. This person may be a United States citizen or a resident alien.
- Title: “owner”, “individual”, or no title at all!
Co-owners may consist of individuals, corporations, or a combination of both. All co-owners’ names are shown on all documents and all co-owners must sign all documents: applications for registration, security instruments, subsequent bills of sale, etc.
For individual persons, the title is “co-owner”.
For corporations: show the name of the corporation, show signature and acceptable corporate or managerial title of person signing on behalf of the corporation and show the title for the corporation itself as “co-owner”.
Individual persons who own an aircraft together may register in a partnership status. The FAA does not allow CORPORATIONS to register as partnerships. There are pretty much three different types of partnerships: a group of individuals who own the plane together and are all equal partners; a limited partnership with one or more general partners; and a legal entity with all individuals as partners.
A group of individuals registering as partners
Names of all partners must be shown on bill of sale evidencing ownership or on application for registration or security agreement filed simultaneously with the aircraft bill of sale.
- Title: Partner
Who must sign when a partnership is selling: All partners’ names are shown but only one signature is required – must be a partner identified when coming in to title and must be signed by one of those persons.
A limited partnership registering in partnership status
The name of the partnership is shown along with names of all general partners on the bill of sale evidencing ownership on the application for registration and on any security instruments filed simultaneously with the bill of sale. The documents must be signed by one general partner, at least, and must be a general partner identified when the entity came into title.
- Title: General Partner
A legal entity name with all individuals as equal partners
- When coming into the chain of ownership, the legal name of the partnership is shown, along with all partners’ names (again, on the bill of sale, the registration application or a security agreement filed at the same time as the bill of sale and registration application).
- On subsequent documents filed with FAA, the name of the legal entity is shown (either as a seller on a bill of sale, or as a debtor on a security agreement) and the document is signed by one of the identified partners.
- Title: Partner
(If a partnership includes a corporation, the FAA is amenable to allowing an LLC to be formed with the partnership as a member/manager, provided the partnership is owned or controlled by U.S. Citizens – call our office for particulars!)
In their April, 2014, newsletter, the IR announced:
It expects to reach half a million registrations by early June: quite a milestone.
It has adopted a robust security posture. The IR is not affected by the Heartbleed vulnerability which has been reported widely.
Brazil: on 21 March 2014 the IR was informed by the Civil Aviation authorities in Brazil that they had commenced issuing Authorized Entry Point codes.
Malawi has acceded to the Convention and Protocol which will come into effect on 1 May 2014.
Australia is now expecting to sign in the next two months.
The UK continues its analysis with an expectation of signature early in 2015; and
Spain continues to research its options regarding signing the Protocol (having already signed the Convention)
Members of the International Registry Advisory Board (who work with the IR pro bono on behalf of the aviation industry) are:
Chair: Jeffrey Wool
Jack Gilchrist, DeBee Gilchrist
Susan Haught – Daugherty, Fowler, Peregrin, Haught & Jenson
Ravinder Nath – Rajinder Narain & Co. Legal LLP
Robert Peregrin – Daugherty, Fowler, Peregrin, Haught & Jenson
William Piels – Holland & Knight
Frank Polk – McAfee Taft
Carolos Sierra – Abogados Sierra y Vazquex
James Tussing – Fullbright & Jaworski LLP
Scott Wilson – Pratt & Whitney
BATI POT POURRI
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Aircraft title searches; title clearing services; filing of documents with FAA; escrow services; registration number reservations and assignments; complete International Registry representation!Sharon
There are people who dream and there are people who scream. There are people who cry and there are people who fly. The good news is that this is a choice!
Non-Citizens can register aircraft in the U.S.: This is strictly a blog in layman’s terms – if you are interested in creating a trust of any kind, you should consult an aviation attorney!
The Code of Federal Regulations – 14 CFR Parts 47 (Registration) and 49 (Recording) -provide guidelines for the transactions that the Civil Aviation Registry will accept, and dictate how to accomplish registration, recording of documents and other functions of the Registry – imports, exports, interests in engines, propellers and spare parts locations (for air carriers only), security agreements, leases, conditional sale contracts, releases and satisfactions, and Artisan’s or Materialman’s liens, and supplements, assignments and amendments to the foregoing, as well as detailed information about registering directly to non-citizen corporations (14 CFR 47.9), registering under Non-Citizen Owner Trusts (14 CFR 47.7) or registering under a Voting Trust (14 CFR 47.8).
Registering Directly to a Non-Citizen Corporation
(if the aircraft is to be based and used primarily in the United States)
If a non-citizen corporation is organized and existing under the laws of one of the United States or its territories or possessions, and owns an aircraft, and it is going to be based and operated in the United States at least 60% of the time, then that corporation can register as a “non-citizen corporation” and operate the aircraft without any kind of trust. The corporation provides to the FAA a report of its operations within the United States every six months. The FAA requires a copy of the certificate of incorporation, a certification that it is lawfully qualified to do business in one or more states; a certification that the aircraft will be based and primarily used in the United States; and the location where the records of the aircraft’s operation will be maintained. Except for submitting the certified copy of its certificate of incorporation, the other information is contained in the aircraft registration application.
(if a non-citizen owns an aircraft and it is not going to be based and primarily used in the United States
If a non-citizen corporation owns an aircraft and it is NOT going to be based and operated in the United States most of the time, then we have a couple of options from which to choose – while still keeping the aircraft registered on the U.S. Registry:
Non-Citizen Owner Trust (available to corporations and individuals) and a Voting Trust. (The Voting Trust option is available only, of course, to corporations organized and existing under the laws of one of the states, territories or possessions of the U.S. – not LLCs and not individuals).
The most noticeable difference in the two trusts is this: with a voting trust, the aircraft is registered to the corporation itself, and in a non-citizen owner trust, the aircraft is registered to the owner trustee.
To create a voting trust, the corporation must be organized and existing under the laws of one of the states, territories or possessions of the U.S., and at least 75% of the voting stock must be placed in the hands of a U.S. citizen voting trustee.
In addition to the voting trust agreement the FAA requires an affidavit by the voting trustee as to its complete independence from all parties to the trust (i.e. that it is not a past, present or prospective director, officer, employee, attorney, or agent of any party to the trust agreement; that it is not a present or prospective beneficiary, creditor, debtor, supplier or contractor to any party to the trust agreement; and that each voting trustee is not aware of any reason, situation or relationship under which any other party to the agreement might influence the exercise of the voting trustee’s totally independent judgment under the voting trust agreement), and that the voting trustee is a U.S. citizen.
Voting trust agreements must provide for the succession of a voting trustee in the event of death, disability, resignation, termination of citizenship or any other event leading to the replacement of any voting trustee.
Non-Citizen Owner Trusts
Great scrutiny has been focused by FAA Washington and the Aeronautical Center Counsel’s office in Oklahoma City on non-citizen owner trust agreements since September, 2013, when the FAA’s “policy clarification” was published in the Federal Register, requiring certain language in the trust agreement, and the filing of all documents affecting a relationship under the trust (usually the operating agreement -either as an attachment to the trust agreement or separately recorded in the FAA aircraft record). The “clarification” also requires the owner trustee to be aware who is operating the aircraft at all times, and be able to tell the FAA the particulars of that operation quickly, if asked.
In a non-citizen owner trust, the title to the aircraft is passed to the owner trustee. Usually there is an operating agreement, or operating lease agreement, between the owner trustee and the trustor which allows the trustor to operate the aircraft during the term of the trust.
The FAA requires that the owner trustee provide an affidavit addressing the citizenship of the beneficiaries of the trust, and to make the statement that there is no security interest incorporated within the trust, and that no non-citizens or resident aliens have more than 25% aggregate power to influence or limit the owner trustee from exercising its duties under the trust. The owner trustee’s affidavit contains language that every document affecting a relationship under the trust has been filed with FAA.
As of this writing, the Aeronautical Center Counsel’s office (“ACC”) in Oklahoma City is reviewing each and every trust instrument and its accompanying affidavit and operating agreement for compliance with the “policy clarification”. The ACC then provides a written opinion to the submitter as to whether the documentation meets the requirements. Those opinions are then filed with the Aircraft Registration Branch along with the evidence of ownership, registration application and trust documentation, as evidence that the trust documentation is approved. Not a single trust agreement is processed by the Civil Aviation Registry’s Aircraft Registration Branch without the ACC opinion!
BATI POT POURRI
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The only place success comes before work is in the dictionary.
We have devoted a number of issues to limited liability companies and still there is great confusion out there in the business world – even folks who are members of their own limited liability company and whose company is managed by, say, its members, still show their title as “President”.
The FAA is carefully scrutinizing LLCs for the following information:
…what is the name of the LLC?
…what is its effective date?
…who are the members?
…are the members U.S. citizens?
…can the members act independently?
…how is the LLC managed? By its members? By a manager? By officers?
This is generally spelled out in the operating agreement
…are the managers U.S. citizens?
…can the managers act independently?
(Acting independently means even though there are four or five members or managers, one member or manager can sign and bind the company).
Here it is in a nutshell: if the LLC is managed by its members, then all documents must be signed by a member with the title “Member”; if the LLC is managed by a manager or managers, then all documents must be signed by the manager, with the title “Manager”; if the LLC is managed by officers, then an officer needs to sign all documents showing the appropriate title: “President”, “Vice-President”, “Secretary”, “Treasurer”, etc.
The statement in support of registration of a United States Civil Aircraft in the name of a Limited Liability Company should be signed by someone who completely understands the organization – preferably by whoever manages it! The FAA will, however, accept statements by “persons in the know”: accountants, attorneys, title companies, etc. as long as they are completely identified (name, address, and phone).
Did you know? If a member of a limited liability company is another limited liability company, then the FAA wants to know all of the above about that member as well. The FAA will scrutinize until we are down to a single individual owner (or individual owners) or a single corporate owner (or corporate owners).
We have a general information sheet on our website about the information the FAA is looking for under “Forms”. However, if you want a template form, please just contact us and we will e-mail it to you!
It is frustrating for people to have their registration rejected because they have used the “wrong” title for themselves when signing the aircraft registration application or a bill of sale, or a security agreement!
We are always available to help you complete an LLC statement that will be acceptable to the FAA – all you have to do is call!
FAA and IR Update
And speaking of being frustrated when documents get rejected:
When completing an Aircraft Registration Application there are a few things to look out for:
…make sure the make, model, serial number and N-Number are accurate
Go to the FAA website: www.registry.FAA.gov and verify the description!
…show the “Type of Registration”
LLCs are required to register as a “corporation”
…show the name of the applicant in the applicant block
…show the mailing address – if mail is to a post office box, then you must also show a
physical address – the FAA requires this.
…TYPE OR PRINT THE NAME OF THE SIGNER beneath the signature.
…show the appropriate title
- For an individual you can show “individual” or “owner”;
- For an LLC show the appropriate title for the “Member” or “Manager” or “Officer”;
- If you are registering to a corporation, use a corporate title;
- If you are registering to a partnership – call us and we will make sure you are in compliance – there are a raft of requirements about registering to partnerships!
- If registering to co-owners, use the title “co-owner”;
The FAA will not accept an Aircraft Registration Application with any of the following:
Simply draw one line through any erroneous information (so FAA can still read it) and then make the correction.
Also be sure to retain the pink copy.
BATI POT POURRI
We have an opportunity for everyone in the world to have access to the entire world’s information. This has never before been possible. Why is ubiquitous information so profound? It’s a tremendous equalizer. Information is power.
-Eric Schmidt, University of Pennsylvania Commencement Address, 2009
Q. What do you submit to FAA to renew registration once a certificate of registration has expired?
A. An Aircraft Registration Application and $5.00 fee. Remember the FAA does not allow operation under the pink slip after an aircraft’s registration has expired. So the aircraft must remain parked until the FAA can issue the new certificate.
Q. How can I get an N-number assigned to an import before the FAA receives the confirmation of registration from the foreign country?
A. The FAA allows us to assign an N-Number if we present a notarized affidavit to the Registry that states the number will NOT be painted on the aircraft until the FAA receives the confirmation of deregistration from the foreign country.
Q. How long does it take to process aircraft registration documents?
A. FAA follows statutory requirements – documents are worked in the order in which the FAA receives them. The FAA’s backlog is generally about 4 weeks. This backlog varies from time to time, for instance, when the government closed down last October for 17 days, the backlog grew to two months.
Q. Can BATI help with a like-kind exchange?
A. You should have your client contact one of the like-kind exchange companies that specialize in aircraft exchanges. By missing a deadline or mis-wording a document, the results can be financially devastating. It is well worthwhile to pay the fee to have a like-kind exchange company handle your transaction.
Q. Why should I register my eligible interest with Cape Town and why is it so expensive?
A. Because the law requires registration to perfect your interest. Period.
In a world of $5 registration and recording fees, the costs of registering yourself as an entity at the IR and making registrations there seem prohibitive; however, the FAA hasn’t kept abreast of inflation and hasn’t, in fact, changed their fee schedule in over 40 years! If the aviation budget ever gets passed, we will be looking at $130 to register an aircraft and a like sum to record an interest in an aircraft at the FAA.
FAA and IR Update
FAQ’s – International Registry
Q. What aircraft objects are covered under Cape Town?
A. The Protocol lays down the following definitions to determine if an object is eligible for registrations:
Airframe means airframes (other than those used in military, customs or police services) that, when appropriate aircraft engines are installed thereon, are type certificated to transport:
- at least eight persons including crew; or
- goods in excess of 2750 kilograms (6063 pounds)
Helicopters means heavier-than-air machines (other than those used in military, customs or police services) supported in flight chiefly by the reactions of the air on one or more power-driven rotors on substantially vertical axes and which are type certificated to transport
- at least five persons including crew; or
- goods in excess of 450 kilograms (990 pounds)
Aircraft Engines means aircraft engines (other than those used in military, customs or police services) powered by jet propulsion or turbine or piston technology and:
- in the case of jet propulsion aircraft engines, have at least 1750 lb of thrust or its equivalent;
- In the case of turbine-powered or piston-powered aircraft engines, have at least 550 rated takeoff shaft horsepower or its equivalent.
BATI POT POURRI
Sharon Hoaglin Schroeder, President
Lisa A. Gaskin, Vice-President
Worrying is like a rocking chair. It gives you something to do, but it gets you nowhere.
BATI Knowledge – Channel Islands Aircraft Registry
The Channel Islands Aircraft Registry has opened for business – it is known as the 2-REG registry. Aircraft registrations will bear the nationality mark “2” followed by four letters allowing for personalized registration marks. 2-Reg will be open to turbine-powered airplanes above 2700 kg and turbine-powered helicopters based anywhere in the world, and airplanes and helicopters based in Guernsey and Jersey. 2-Reg is a registry for aircraft and helicopters not used for commercial air transport.
BATI may have been one of the first to export a U.S. aircraft to the Channel Islands Aircraft Registry last week because the contact info wasn’t yet in the FAA records – we believe they just started operating this year, after their grand opening in Guernsey on December 13, 2013.
Contact Info for the new registry:
Address: Guernsey Airport, Airport Terminal Building
La Villiaza, Forest
Guernsey, GY8 0DS
FAA and IR Update
The FAA is working about 4 weeks backlogged right now in both processing documents and in the support section (N-Number changes).
We had a client call last week saying that the man who owned the aircraft they were about to close on had died about six months ago, but they had a bill of sale signed by him, although it would be dated after his death, and wanted to know if that would be OK to use!
There are many things to consider when you file documents with FAA. The most important, in our opinion, being that the documents themselves have to be enforceable under local law. I am pretty sure that there are no circumstances in which a bill of sale filed six months after someone’s death would be enforceable, but I could be wrong. All you lawyers out there reading this, educate me!
The FAA allows the personal representative of the estate to either register to himself/herself and/or sign the bill of sale (as long as a certified copy or a photocopy of a certified copy of their authority to act is provided to FAA). If there is no estate being probated, some states have laws that allow the heir-at-law to sell the property and the FAA has a special Affidavit to be filled out in that event (see our website/forms).
In all cases where an estate is involved, it is wise to get the advice of a local attorney before sending documents to a title company or directly to the FAA!
BATI POT POURRI
The BATI Umbrella of Services – protects you from:
…buying an aircraft with liens and clouds on it (can you say…title search report?)
…assures you will be the registered owner – we never stop our diligence or monitoring until everything is just the way you want it….filing services, escrow services, re-registrations, N-number changes.
…You can relax and know that your interest in Cape Town equipment is firmly established by filing with FAA and registration with the International Registry.
Call BATI now: 405-942-1004 – Sharon Schroeder and Lisa Gaskin