Piston Aircraft Loans
FAA Aircraft Registry documents showing lien filing and security interest recording

The Role of the FAA Registry in Aircraft Loan Security

The FAA Aircraft Registry serves as the cornerstone of aircraft ownership and financing in the United States, functioning as the federal repository for all civil aircraft registrations, ownership records, and security interests. Unlike automobiles registered at the state level with inconsistent systems across 50 states, all U.S. civil aircraft register federally through the single FAA Aircraft Registry in Oklahoma City. This centralization creates a uniform, searchable public record enabling lenders to perfect security interests, buyers to verify clear title, and government agencies to track aircraft ownership—making the Registry essential infrastructure for the $40+ billion general aviation financing market.

For aircraft lenders, the FAA Registry isn't merely an administrative formality—it's the legal mechanism that transforms a simple promise to repay into enforceable collateral. When your lender files a security interest with the FAA, they're establishing a public record creating priority over subsequent creditors and protecting their claim if you default, declare bankruptcy, or attempt to sell the aircraft without satisfying the debt. This filing process, called "perfecting" a security interest, determines whether a lender holds a secured claim worth pennies or dollars on every dollar in bankruptcy, whether they can repossess aircraft from third parties who purchase from delinquent borrowers, and whether their lien has priority over other creditors' claims.

This comprehensive guide demystifies the FAA Aircraft Registry's role in aircraft financing, explaining the step-by-step process lenders use to perfect security interests, teaching you how to search Registry records to verify clean title before purchasing, detailing common filing errors that create title problems years later, and outlining the lien release process when you pay off loans. Whether you're financing your first aircraft purchase, considering refinancing, or selling an aircraft with existing liens, understanding the Registry's function ensures you avoid expensive title problems and protect your substantial investment.

What is the FAA Registry? The Cornerstone of Aircraft Financing Explained

The FAA Aircraft Registry, officially known as the Mike Monroney Aeronautical Center Aircraft Registry, serves three critical functions that make modern aircraft financing possible.

Function 1: Aircraft Registration and Identification

The federal registration system: The FAA assigns each aircraft a unique identification number (N-number like N12345) that remains with the aircraft throughout its life. This registration system:

According to FAA Aircraft Registry guidance, registration must be renewed every three years by submitting AC Form 8050-1 (Aircraft Registration Application) and paying the $5 renewal fee. Failure to maintain current registration can invalidate insurance coverage and violate lender security agreements.

Function 2: Recording Security Interests and Liens

The public notice function: The Registry maintains permanent records of all security interests filed against aircraft. When a lender finances your aircraft purchase, they file their lien with the FAA, creating a public record that:

What gets recorded:

Function 3: Chain of Title Verification

Title history reconstruction: The Registry maintains complete ownership history from original registration to present. Buyers and lenders can trace:

Why title chain matters: A broken title chain (missing bills of sale, unreleased liens from previous owners, conflicting ownership claims) can render aircraft unfinanceable and unsellable. Before purchasing aircraft, title searches verify continuous, clean title from manufacture to present.

Perfecting Your Lien: A Step-by-Step Guide to Securing Your Aircraft Loan via the FAA

Understanding the lien perfection process helps you verify your lender properly protected their security interest and know what documents to expect during financing.

Step 1: Execution of Security Agreement

Creating the security interest: Before FAA filing, you and the lender must execute a security agreement (also called aircraft security agreement or chattel mortgage):

Required elements:

Critical detail: Aircraft description accuracy: The aircraft must be described precisely—incorrect serial numbers, registration numbers, or model designations can render filings defective. Verify all aircraft identification information against FAA registration and manufacturer data plates before signing.

Step 2: Preparation of AC Form 8050-98 Conveyance

The recording form: To record a security interest with the FAA, lenders submit AC Form 8050-98 (Aircraft Security Agreement) along with the underlying security agreement:

Form 8050-98 contents:

Alternative filing methods: Instead of Form 8050-98, lenders can also file:

Step 3: Submission to FAA Aircraft Registry

Filing location and methods: All filings go to:

FAA Aircraft Registry
AFS-750
P.O. Box 25504
Oklahoma City, OK 73125

Submission options:

Required documents:

Step 4: FAA Processing and Recording

What the FAA does:

  1. Examines filing for completeness: Verifies all required information is present and accurate
  2. Checks aircraft eligibility: Confirms aircraft is eligible for U.S. registration
  3. Assigns conveyance number: Each filing receives a unique conveyance number for tracking
  4. Records document: Scans filing into permanent digital database with date/time stamp
  5. Updates ownership records: Notes security interest in aircraft's title record
  6. Returns recorded documents: Mails original documents back to filer with recording information

Recording date significance: The date and time the FAA receives and records your filing determines lien priority. If two lenders file liens on the same aircraft, the first recorded has priority. This is why many lenders use overnight delivery and expedited processing for large loans.

Step 5: Verification and Ongoing Monitoring

Post-filing verification: After receiving recorded documents from the FAA:

Borrower verification: While your lender handles filing, you should also verify:

The Essential FAA Filing Checklist: Key Documents for a Bulletproof Aircraft Security Agreement

Proper documentation prevents future title problems. Whether you're a borrower ensuring your lender protects your interest or a lender perfecting security, this checklist ensures comprehensive filings.

Document 1: Aircraft Bill of Sale (AC Form 8050-2)

Purpose: Documents ownership transfer from seller to buyer, establishing you as the registered owner before the lender's lien can attach.

Critical elements:

Common errors causing rejection:

Document 2: Aircraft Registration Application (AC Form 8050-1)

Purpose: Registers aircraft in your name, establishing you as legal owner in FAA records.

Required information:

Timing considerations: Submit registration application simultaneously with security agreement filing to avoid gaps where aircraft might be unregistered.

Document 3: Security Agreement (AC Form 8050-98 or equivalent)

Purpose: Creates and records lender's security interest in the aircraft.

Must include:

Document 4: Evidence of Citizenship (AC Form 8050-2)

Purpose: Proves aircraft owner meets FAA citizenship requirements for U.S. aircraft registration.

Acceptable evidence:

Document 5: Title Search or Chain of Title Documentation

Purpose: Verifies clean title with no unresolved liens or ownership disputes before lender files their security interest.

Professional title search includes:

Cost: Professional aircraft title searches typically cost $300-$800 depending on aircraft complexity and history.

Beyond the Basics: Navigating Title Searches, Liens, and the Cape Town Convention

Advanced topics in aircraft title and security affect high-value aircraft, international operations, and complex transactions.

Conducting Comprehensive Aircraft Title Searches

DIY basic search: You can perform preliminary searches free at https://registry.faa.gov/aircraftinquiry/:

  1. Enter aircraft N-number or serial number
  2. Review current registration showing registered owner
  3. Click "Documents" to view all recorded conveyances
  4. Examine each conveyance for:
    • Bills of sale documenting ownership transfers
    • Security agreements (liens) with lien holder and amount
    • Lien releases showing paid-off loans
  5. Verify title chain is continuous with no gaps
  6. Confirm all liens show corresponding releases (except current loans)

Professional title search advantages:

When professional searches are essential:

Understanding Lien Priority and the "First in Time, First in Right" Rule

Priority basics: When multiple liens exist on an aircraft, priority determines the order lien holders are paid from sale proceeds or insurance claims:

Example: Aircraft with multiple liens

Distribution of proceeds (simplified):

  1. First lien holder receives full $200,000
  2. Second lien holder receives $40,000 (if sufficient proceeds)
  3. Mechanic's lien receives $8,000 (or might have priority depending on state law)
  4. Remaining $27,000 ($275,000 - $248,000 in liens) goes to aircraft owner

Priority exceptions:

The Cape Town Convention and International Registry

What is Cape Town? The Cape Town Convention (formally "Convention on International Interests in Mobile Equipment") is an international treaty creating a global registry for security interests in aircraft equipment.

As of 2025, 85+ countries are parties, including the U.S., Canada, most of Europe, and many aviation-significant nations. The Convention:

Dual filing (FAA + International Registry): For financed aircraft, especially high-value or internationally-operated aircraft, lenders increasingly file BOTH:

Cost of Cape Town filing: $500-$1,500 depending on aircraft value and filing service used, plus ongoing fees if amendments are needed.

When Cape Town filing matters:

Lien Releases: The Critical Final Step

When loans are paid off, liens must be formally released:

Lender's obligations:

  1. Upon receiving full payoff, lender must file AC Form 8050-41-3 (Release of Lien) with FAA
  2. Release should be filed within 30 days of payoff
  3. Lender sends you copy of filed release for your records
  4. FAA processes release and updates aircraft record removing the lien

Borrower's responsibilities:

Problems with unreleased liens:

Forcing lien releases: If lender refuses to release paid lien:

Critical Takeaways: Protecting Your Interests Through FAA Registry

The FAA Aircraft Registry is the foundation of aircraft ownership and financing security. Every aircraft transaction—purchase, sale, financing, refinancing—depends on proper FAA filing to create enforceable legal rights. Buyers must search Registry records to verify clear title before purchasing. Lenders must file security agreements to perfect their liens. Sellers must ensure all liens are released before transferring ownership. Failing to properly navigate FAA Registry procedures creates expensive title problems that can make aircraft unfinanceable and unsellable.

Always verify FAA filings personally rather than blindly trusting that lenders, sellers, or escrow agents completed them correctly. Within 30 days of any transaction, search your aircraft's N-number at the FAA website and confirm: (1) you're listed as registered owner, (2) any new liens appear correctly, (3) old liens are released, and (4) no unexpected liens or claims exist. This simple verification prevents discovering problems years later when you want to sell or refinance.

Finally, work with experienced aviation attorneys and title companies for significant aircraft transactions ($150,000+). The $500-$1,500 cost of professional title searches and legal review is trivial insurance against $100,000+ title defects that render aircraft unsellable. Don't economize on title work—it's the foundation of your ownership rights and your lender's security.

For more information on aircraft financing and ownership, explore our guides on aircraft title and escrow processes and the aircraft closing process explained. Use our loan calculator to model different financing scenarios while understanding the registry processes that secure those loans.

Frequently Asked Questions

What is the FAA Aircraft Registry and why does it matter for aircraft loans?

The FAA Aircraft Registry is the federal database maintained in Oklahoma City that records aircraft ownership, registration, and security interests (liens) for all civil aircraft in the United States. For aircraft loans, the Registry is critical because it's where lenders 'perfect' their security interest by filing a lien—creating a public record of their legal claim to the aircraft. This filing gives the lender's claim priority over subsequent lenders and provides notice to anyone researching the aircraft. Without proper FAA Registry filing, a lender's security interest may be unenforceable against third parties, meaning they could lose their collateral to other creditors even if you signed a security agreement.

How do I search for liens on an aircraft I'm considering purchasing?

You can search FAA Aircraft Registry records for free at https://registry.faa.gov/aircraftinquiry/. Enter the aircraft's N-number (registration number) or serial number to view its complete record including: current registered owner, registration history, recorded liens and security interests (with lien holder names and recording dates), and all recorded conveyances (bills of sale, security agreements, lien releases). This public database allows buyers to verify clear title and identify all liens that must be satisfied before purchase. Additionally, professional aircraft title search services provide more comprehensive searches including historical records, FAA correspondence, and potential issues not immediately apparent in basic searches. Budget $300-$800 for professional title searches on significant aircraft purchases.

What happens if my lender doesn't properly file their lien with the FAA?

If your lender fails to file (or improperly files) their security interest with the FAA Aircraft Registry, their lien may be 'unperfected'—meaning it's not legally enforceable against other creditors or subsequent purchasers. Practical consequences include: (1) Another creditor with a properly-filed lien could claim priority over your lender; (2) If you sell the aircraft to a good-faith purchaser without knowledge of the unfiled lien, the buyer may take clear title free of the lien; (3) In bankruptcy, the lender may be treated as an unsecured creditor rather than secured creditor. However, the unperfected lien remains enforceable against you personally—you still owe the debt even if the lender loses collateral rights. This situation benefits you only in rare circumstances and creates complications when selling or refinancing.

How long does it take for the FAA to process lien filings and releases?

Standard FAA Aircraft Registry processing times vary: routine lien filings typically process in 7-14 business days, lien releases process in 7-14 business days after submission, and registration applications process in 7-14 business days. However, these are estimates—backlogs can extend processing to 4-6 weeks during busy periods. The FAA offers expedited processing for an additional fee ($50-$100) reducing processing to 2-3 business days for urgent situations. When selling aircraft or refinancing, factor in these processing times—don't schedule closing before confirming the FAA has processed required lien releases. You can check processing status by contacting the FAA Aircraft Registry directly or through their online inquiry system.

Can I have multiple liens on my aircraft?

Yes, aircraft can have multiple liens recorded simultaneously—a first mortgage/loan, second lien for avionics financing, mechanic's liens for unpaid work, and tax liens from government authorities. Lien priority is generally determined by recording date (first in time, first in right), though exceptions exist: mechanic's liens for labor/materials that improved the aircraft may have priority over earlier-recorded financial liens in some states, and tax liens from IRS or state agencies often have super-priority regardless of recording date. When multiple liens exist, selling the aircraft requires paying off liens in priority order from sale proceeds. Second liens are possible but expensive—lenders charge 2-3% higher rates for second position due to increased risk of not being fully paid in default scenarios.

What is the Cape Town Convention and how does it relate to FAA Registry filings?

The Cape Town Convention is an international treaty creating a unified global registry for aircraft security interests across 85+ participating countries. For aircraft financing, lenders often file BOTH with the FAA Aircraft Registry (for U.S. law protection) AND the International Registry under Cape Town Convention (for international law protection). This dual filing provides maximum security: the FAA filing establishes priority under U.S. law and is searchable in standard aircraft title searches, while Cape Town filing provides recognition and priority in foreign countries if the aircraft operates internationally or is involved in cross-border transactions. Cape Town registration costs $500-$1,500 but is increasingly standard for financed aircraft, especially those operating internationally or valued over $500,000.

Disclaimer: This article provides general information about the FAA Aircraft Registry and aircraft security interests. It should not be considered legal advice. FAA regulations, filing requirements, lien priority rules, and legal procedures vary and change over time. Always consult with aviation attorneys and title professionals for legal advice specific to your aircraft transaction. Properly perfecting security interests and conducting title searches requires specialized expertise—errors can result in loss of security rights or purchasing aircraft with defective title.

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