| Aircraft Title Insurance Agency 3135 NW 63rd, Suite B Oklahoma City, OK 73116 Phone: 405-843-8231 | Fax: 405-842-2048 |
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Priority
of the Lien
This coverage protects you from the interests of other lien holders
who claim priority over your financing. We insure the priority of the
insured mortgage over interests registered at the International Registry.
This coverage includes interests that may or may not be found through
a search of the International Registry. It also includes interests registered
before OR after the date of the policy.
Furthermore, if it is determined that it is not necessary to register the interest at the International Registry, the policy insures against loss suffered as a result of the failure to register at the International Registry.
Invalidity
or Unenforceability of Your Lien
Coverage is provided against claims that your lien has not been properly
signed, delivered, recorded, or is otherwise invalid or unenforceable.
Ownership
Disputes
The EAGLE Protection Aircraft Loan Policy of Title Insurance with Cape
Town Protection insures that your borrower is the owner of the aircraft.
This goes beyond simply insuring that the FAA registration records are
accurate and have been properly searched. It says that even if the owner
is not the FAA certificate holder, you are protected from interests
in the aircraft held by others. Basically, we insure that you are dealing
with the rightful owner.
This coverage also protects against defects, liens or encumbrances on the title INCLUDING interests registered at the International Registry (IR). This includes interests that may or may not be found through a search of the IR.
Gap Coverage
Sometimes material cannot be retrieved from any recording system, including
the FAA’s, immediately after its submission. At the FAA this “blind
spot” can last several hours, and could pose a risk to your lien.
This risk is covered by the EAGLE Protection Aircraft Loan Policy of
Title Insurance with Cape Town Protection.
A gap may also exist between the time that all parties consent to the registration of an international interest at the IR and the time that interest becomes searchable.
Another gap problem can occur when a document is rejected for recording after it is filed. Without a recorded document, your interests, including your priority under the Cape Town treaty could be jeopardized.
All of these issues clearly pose a risk to your priority interest and are covered by the EAGLE Protection Aircraft Loan Policy of Title Insurance with Cape Town Protection
Federal
Tax Liens
Federal tax liens are not recorded at the FAA. Aircraft lenders are
protected from this hidden risk up to $250,000.
Unrecorded
State Tax Liens
Coverage for up to $25,000 is provided against state tax liens which
did not appear in the FAA records. Such off-record liens may be enforced
against the aircraft if it lands in the taxing state.
Labor or
Material Liens
We will protect your interest when prior liens are claimed for payment
of services, labor or materials furnished to the aircraft before the
policy date, and which your borrower did not agree to pay. And with
limited exception, we will also protect you from post-policy labor,
service or material providers asserting a lien right prior to yours.
Estate or
Inheritance Tax Liens
Similar to unrecorded State Tax Liens, coverage up to the value of the
policy is provided against unexpected estate or inheritance tax liens
that did not appear in the FAA registration records.
Foreign
Registry Matters
You are protected against claims that the aircraft’s United States
registration is invalid because it was not properly removed from a foreign
registry.
Defective
Transfers of Title
This provides coverage if, anywhere in the chain of title, the aircraft
was not properly transferred out of a judicial or administrative proceeding,
or out of an estate.
Document
Forgery
Coverage is provided when your lien is impaired by a forgery occurring
anywhere in the chain of ownership to the aircraft or in your security
agreement.
Fraud
or Duress
Similar to forgery, this coverage protects you in the event that any
transfer document in the chain of aircraft ownership is not valid because
it was obtained by fraud, undue influence or duress.
Incompetence
or Incapacity
Coverage is provided when any document transferring ownership was signed
by a person legally incapable of completing the transaction because
of age, incapacity, or lack of partnership, corporate or trust authority.
Defective
Filing or Recording of Documents
This coverage protects you against defects in any filed or recorded
document necessary to establish your security interest in the aircraft
and your borrower’s ownership of it.
Post-Policy
Forgery
Unfortunately, it happens. Occasionally, unscrupulous persons will attempt
to falsify a release of an unsatisfied security interest. If this should
happen, we will cover ensuing losses to you, including the cost to restore
your lien to the record.
Engines
or Propellers
Coverage is provided against liens and encumbrances recorded in the
public records on the engines and propellers.
As with any insurance product, the policies contain exclusions and conditions that should be reviewed before purchasing.