FAA and International Registry Issues: FAA and International Registry Issues: Filings, Closings, Opinions and other Filings, Closings, Opinions and other

Sundry ItemsSundry Items

Erin M. Van Laanen, Esq.Erin M. Van Laanen, Esq.

McAfee & Taft, P.C.McAfee & Taft, P.C.

Phone: 405-552-2208Phone: 405-552-2208

Fax: 405-235-0439Fax: 405-235-0439

Email: Email: erin.vanlaanen@mcafeetaft.comerin.vanlaanen@mcafeetaft.com

August 8-9, 2008, ABA New YorkAugust 8-9, 2008, ABA New York

Status of Transition FAA Registry Status of Transition FAA Registry Modernization System (RMS)Modernization System (RMS)

Transition began 2/25/08Transition began 2/25/08 Backlog of documents to be processed has been Backlog of documents to be processed has been

substantially reduced substantially reduced Fly wires, exports and imports are being processed in a Fly wires, exports and imports are being processed in a

more timely mannermore timely manner Substantial issues still exist with getting complete, reliable Substantial issues still exist with getting complete, reliable

records records Turnover of staff/new FAA examiners require constant Turnover of staff/new FAA examiners require constant

double checking double checking

FAA Transportation Code: Transfers of FAA Transportation Code: Transfers of Owner Participant InterestsOwner Participant Interests

Issue: Transfer of owner participant interest under owner Issue: Transfer of owner participant interest under owner trust; closing occurs outside of FAA Registry business trust; closing occurs outside of FAA Registry business hourshours

Can the closing occur without simultaneous FAA filing ?Can the closing occur without simultaneous FAA filing ? If so, is the aircraft registration adversely affected?If so, is the aircraft registration adversely affected? FAR language: FAR language: “each applicant must submit a copy of each “each applicant must submit a copy of each

document legally affecting a relationship under the trust”document legally affecting a relationship under the trust”

ACC opinion: No mail box rule is applicable; no effect on ACC opinion: No mail box rule is applicable; no effect on registrationregistration

Result: closings outside of FAA hours are permittedResult: closings outside of FAA hours are permitted

FAA Transportation Code: Citizenship FAA Transportation Code: Citizenship test requires “actual control”test requires “actual control”

Issue: Whether companies meet the citizenship test of Issue: Whether companies meet the citizenship test of “actual control” ?“actual control” ?

Transportation Code language: …Transportation Code language: …which is under the actual control of citizens of the United States

Voting trust agreements: used when the ownership of an Voting trust agreements: used when the ownership of an entity is not controlled by US citizensentity is not controlled by US citizens

Is the actual control test met ?Is the actual control test met ? What about owner trust?What about owner trust? What about Based & Primarily Used exception?What about Based & Primarily Used exception?

Cape Town: Helicopter EnginesCape Town: Helicopter Engines

Issue: Whether helicopter engines are Issue: Whether helicopter engines are covered by the Cape Town Treatycovered by the Cape Town Treaty

Convention language: yes and no; depends Convention language: yes and no; depends on where the engine is, what it is attached on where the engine is, what it is attached to, what time of day it is, whether it’s a bird to, what time of day it is, whether it’s a bird or a planeor a plane

Solution: ? Solution: ?

Cape Town: Informational SearchesCape Town: Informational Searches

Issue: Searches must be EXACTIssue: Searches must be EXACT Opinion assumption:Opinion assumption: search requires exact manufacturer, model and serial search requires exact manufacturer, model and serial

number; any variance is fatal; a space, comma, dash, capitalization, added number or number; any variance is fatal; a space, comma, dash, capitalization, added number or character, missing number or character; result: there may be registrations which are not character, missing number or character; result: there may be registrations which are not reflected on the Priority Search Certificates, reflected on the Priority Search Certificates, which may have prioritywhich may have priority over subsequent over subsequent registrations on the IRregistrations on the IR

New search ability: Limited informational searches are now New search ability: Limited informational searches are now available, but they are not always complete available, but they are not always complete

Removal of opinion assumption: Probably notRemoval of opinion assumption: Probably not

Cape Town: Informational SearchesCape Town: Informational Searches

Cape Town: Informational SearchesCape Town: Informational Searches

Cape Town: Consents to Cape Town: Consents to Registrations Registrations

Two types of “consents”Two types of “consents” PUE/TUE “mechanical” IR consentsPUE/TUE “mechanical” IR consents Contractual consent still required pursuant to the Contractual consent still required pursuant to the

TreatyTreaty Good business practice to require a writing for the Good business practice to require a writing for the

filefile

FAA Aircraft Deregistration – Cape FAA Aircraft Deregistration – Cape TownTown

Article XIII - provides for Irrevocable De-Registration and Article XIII - provides for Irrevocable De-Registration and Export Request Authorization (“IDERA") (opt in)Export Request Authorization (“IDERA") (opt in)

IDERA is filed with the FAA when a transaction closesIDERA is filed with the FAA when a transaction closes Upon defaultUpon default, request to deregister is made by the holder , request to deregister is made by the holder

of the IDERA (the secured party)of the IDERA (the secured party) Be sure that there is a default; it not, IDERA needs to be Be sure that there is a default; it not, IDERA needs to be

terminated terminated

International Registry – RegistrationsInternational Registry – Registrations

Drop down list of TUE’s – not accurateDrop down list of TUE’s – not accurate– TUE is listed but the account is not valid or is TUE is listed but the account is not valid or is

dysfunctional dysfunctional – Discharges – issues with some TUE’s – can’t discharge Discharges – issues with some TUE’s – can’t discharge

an international interestan international interest

Illegal Charter OperationsIllegal Charter Operations

From the NBAA website: Due to a lack of inspectors, an From the NBAA website: Due to a lack of inspectors, an illegal charter hotline has been created illegal charter hotline has been created

Partnership between the FAA and National Air Transport Partnership between the FAA and National Air Transport AssociationAssociation

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