November 18, 2013 – Newsletter
Kent M. Keith
If you are kind, people may accuse you of selfish, ulterior motives; be kind anyway.
If you are successful, you will win some false friends and true enemies; succeed anyway.
If you are honest and frank, people may cheat you; be honest and frank anyway.
If you find serenity and happiness, they may be jealous; be happy anyway.
The good you do today, people will often forget tomorrow; do good anyway.
You see, in the final analysis, it is between you and God; it was never between you and them anyway.
Aircraft Escrow Closings – the role of the escrow agent
The role of an aircraft transaction escrow agent is that of neutral stakeholder. We do not make decisions, we do not settle controversies and we do not take sides!
In a perfect world the escrow agent receives a fully executed purchase agreement with all the particulars of the transaction, including the names and addresses and contact information for all the parties (buyer, seller and escrow agent), a full and complete description of the airframe and associated engines (and props if applicable), the purchase price, how much deposit is required and how soon after completion of the pre-purchase inspection the transaction will close.
Armed with this information the escrow agent will order records from the FAA and complete title reports on all the equipment. After completion of the title report, the escrow agent will begin the check list of documents that will be needed for the closing:
In part, this list will include:
- circulating the title report to the seller and buyer (and brokers, agents,
and/or financiers involved on behalf of the seller and/or buyer)
- starting a check list of documents, for example:
(1) aircraft bill of sale
(2) warranty bill of sale
(3) aircraft registration application
(4) lien release
(5) disclaimers or other documents needed to clear clouds other than purchase-money security instruments which may be revealed on the title report
(6) if parties are not TUEs at the IR, then an attempt to help the parties become a TUE, or offer to be the administrator for them, and provide necessary documents for their signature
(7) notify all parties of the costs – if escrow fees are being split by buyer and seller, prepare invoices for each party
- communicate at all times with all parties to alert when
(a) the deposit is received;
(b) when the various documents arrive in escrow;
(c) when the anticipated closing date will be, and changes to that date, if any.
The best job an escrow agent can do is be fully engaged in the transaction and available for phone calls, e-mail messages and have an organized plan for the transaction!
BATI – FAA and IR UPDATES
Timelines – Timeframes
Folks, the FAA Civil Aviation Registry is backlogged now – about six weeks. When the Registry gets to October 17th documents (remember the 10,000+ documents they clocked in after the government shutdown?) that will add about a couple of more weeks to the backlog, at least. We anticipate that by the end of December the Registry will be working on the Oct. 17th documents…
These backlogs are felt most movingly if you are awaiting an n-number change on your old aircraft so you can free up its number to be painted on your new aircraft that you expect to be delivered in the 4th quarter of 2013. Unfortunately, the FAA will not expedite N-Number changes for any reason!
It is possible that as the backlog grows the Registry may authorize overtime and weekend work for its staff – we certainly hope so! In the meantime you can go to FAA.Registry.Gov and the Aircraft Registration Branch posts daily what day’s filings they are working. When you get this Newsletter on the 18th, we are anticipating they will be working documents filed in the first or second of October, 2013.
Please note: If you would like to highlight your firm or your aircraft in BATI’s pot-pourri section, please send us a photograph and text (sschroeder@BATI.aero) and we will try to work you in on future Newsletters!
Meet the Business Aviation Group at DeBee Gilchrist – Attorneys
The business aviation group of DeBee Gilchrist, PC is best known in the aviation industry for the availability of the attorneys, the accuracy of their work product and counsel, and the timeliness of their response to pressing client needs.
Because of the firm’s location in Oklahoma City, the business aviation group is uniquely able to serve clients as well as other law firms, as special FAA counsel, special Cape Town Convention and International Registry counsel, for all manner of aircraft transactions. The firm assists clients and law firms around the world in structuring aviation transactions whether they involve documents to be recorded with the FAA Aircraft Registration Branch in Oklahoma City, interests to be registered with the International Registry in Dublin, Ireland, or both!
The work of the aviation group includes legal counsel and written legal opinions regarding aircraft registration, title, financing, leasing, liens and escrow services.
DeBee Gilchrist, PC
100 N. Broadway Ave., Suite 1500
Oklahoma City, OK 73102