UCC filing for airplane security agreement - collateral description requirements?
I'm working on perfecting a security interest in a 2019 Cessna 172 for our bank and I'm getting conflicting information about how to describe the aircraft collateral on the UCC-1. The loan is for $285,000 and we need to make sure we get this right since airplane financing has some unique requirements. Some sources say I need the full N-number registration, others say just 'aircraft' is sufficient. The debtor is an LLC that owns the plane for business use. Has anyone dealt with aircraft collateral descriptions recently? I'm worried about getting this rejected by the SOS if the description isn't specific enough, but I also don't want to over-describe and create problems later. What's the standard practice for airplane security agreements when filing UCC-1 forms?
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Paolo Marino
Aircraft collateral can be tricky because you're dealing with both UCC and FAA registration requirements. For the UCC-1, you definitely want to include the N-number (tail number) along with make, model, and year. Something like '2019 Cessna 172, N12345AB' would be appropriate. The key is being specific enough that a third party could identify the exact aircraft without being so detailed that minor changes void your perfection.
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Amina Bah
•This is exactly right. I've filed dozens of aircraft UCC-1s and the N-number is critical. Without it, you could have issues with priority if there are multiple aircraft of the same make/model.
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Oliver Becker
•Wait, what about when the aircraft gets re-registered? Does the N-number change affect the UCC filing?
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Natasha Petrova
You also need to be careful about the debtor name matching exactly between your security agreement and the UCC-1. With LLCs especially, make sure you're using the exact legal name as registered with the state. I've seen aircraft deals fall apart because of debtor name mismatches.
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Javier Hernandez
•This happened to us last year! The LLC had 'Aviation' in the security agreement but 'Aviations' (plural) in the state records. Had to amend the whole thing.
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Emma Davis
•Actually just ran into something similar with an aircraft deal. Ended up using Certana.ai's document checker - you can upload your security agreement and UCC-1 draft and it instantly flags any name inconsistencies or collateral description issues. Saved us from filing incorrectly.
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LunarLegend
Don't forget about the FAA security interest filing too! The UCC-1 doesn't replace the need to file with the Aircraft Registry in Oklahoma City. You need both for proper perfection.
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Malik Jackson
•Good point. The dual filing requirement catches people off guard. UCC for personal property rights, FAA for federal aviation law compliance.
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Isabella Oliveira
•How long does the FAA filing usually take? We're trying to close this deal next week.
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Ravi Patel
•FAA can take 2-3 weeks for processing, sometimes longer. The UCC-1 is immediate electronic filing in most states though.
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Freya Andersen
I'm dealing with something similar but it's a helicopter. Do the same collateral description rules apply? My security agreement is for a Robinson R44 and I'm not sure if I need additional engine serial numbers or just the tail number.
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Omar Zaki
•Helicopters follow the same basic principles. Tail number, make, model, year should be sufficient for UCC purposes. Engine serials are more relevant for FAA documentation.
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CosmicCrusader
•Robinson helicopters are common - just did one last month. Keep it simple on the UCC-1, detailed in your security agreement.
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Chloe Robinson
MAKE SURE YOUR CONTINUATION DATES ARE CALENDARED! Aircraft financing often runs longer than 5 years and missing a UCC continuation on a $285K aircraft loan would be catastrophic. Set reminders for year 4.
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Diego Flores
•So true. We use a tickler system for all our continuations but aircraft loans especially since they're often 10-15 year terms.
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Anastasia Kozlov
•Actually Certana.ai has continuation tracking built in - when you upload your UCC-1 it automatically calculates your continuation deadline and can send reminders. Pretty handy for aviation deals where the stakes are high.
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Sean Flanagan
•Never heard of that service but might be worth looking into. We've had a couple close calls on continuation deadlines.
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Zara Mirza
One thing to watch out for - if the LLC moves to a different state, you might need to refile the UCC-1 in the new jurisdiction. Aircraft don't move the UCC filing location but the debtor's location does.
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NebulaNinja
•This is a great point that gets overlooked. The UCC follows the debtor's location, not the collateral location.
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Luca Russo
•How do you even track when a business debtor moves states? That seems impossible to monitor.
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Nia Wilson
•Most loan agreements require borrowers to notify lenders of address changes, but enforcement is tough.
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Mateo Sanchez
For $285K I'd definitely recommend having your documents reviewed before filing. Small mistakes on aircraft deals can be very expensive to fix later, especially if you're dealing with competing liens or need to foreclose.
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Aisha Mahmood
•Absolutely. Aircraft repossession is complicated enough without UCC perfection issues.
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Ethan Clark
•We actually started using that Certana tool mentioned earlier for all our aircraft deals. Upload the security agreement and UCC-1 draft, get instant verification that everything matches up properly. Much faster than manual review.
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AstroAce
•What does something like that cost? Our volume probably doesn't justify expensive verification tools.
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Yuki Kobayashi
Just closed an aircraft deal last month and learned the hard way about serial number requirements. The insurance company wanted engine and propeller serials that weren't on our UCC-1. Didn't affect perfection but created closing delays.
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Carmen Vega
•Insurance requirements are different from UCC perfection requirements. Keep them separate in your mind.
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Andre Rousseau
•Good distinction. UCC is about secured creditor rights, insurance is about identifying the exact equipment being covered.
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Zoe Stavros
Thanks everyone - this is exactly the kind of detailed guidance I needed. Sounds like I should go with: '2019 Cessna 172, N-number, Serial Number' and make absolutely sure the debtor LLC name matches exactly between documents. I'll set up continuation reminders for year 4 and make sure we coordinate with the FAA filing.
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Jamal Harris
•That approach sounds solid. Double-check that debtor name against the state business records before filing.
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GalaxyGlider
•Perfect plan. One more suggestion - verify your UCC search shows no existing liens before you file. Aircraft often have previous financing that should be terminated.
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Mei Wong
•Good luck with the deal! Aircraft financing can be complex but you seem to have all the key points covered.
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Mandy Stafford
•All I do is international aircraft finance - please remember to file with the IR if US and the FAA if the aircraft/engines are IR eligible. IR = International Registry/Cape Town. If eligible and you don't file with the IR, a subsequent filing will trump yours.
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Mandy Stafford
•@Zoe Stavros Can be a Cessna but now known as Textron Aviation, Inc. - please do a search on the FAA and the IR for the appropriate descriptions of the make and model
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Liam Sullivan
Quick follow-up question - does anyone know if experimental aircraft follow the same UCC rules? I have a client with a kit-built plane that doesn't have standard registration.
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Amara Okafor
•Experimental aircraft still get N-numbers from the FAA, so UCC filing should be similar. The airworthiness certificate is different but that shouldn't affect your security interest.
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Giovanni Colombo
•Kit planes can be tricky for valuation and insurance but the UCC perfection is straightforward if it has proper FAA registration.
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NebulaNomad
Great discussion here! I've handled several aircraft UCC filings and want to emphasize the importance of getting both the collateral description AND the debtor name exactly right. For a $285K Cessna deal, I'd recommend: 1) Use the exact N-number from the FAA registry, 2) Include make, model, year, and aircraft serial number, 3) Triple-check the LLC name matches state records exactly (including punctuation), 4) Don't forget the parallel FAA security interest filing in Oklahoma City, and 5) Set up your continuation reminder system immediately. The dual filing requirement trips up a lot of people - you need both UCC perfection AND FAA registration to be fully protected. Also consider doing a comprehensive UCC search first to identify any existing liens that need to be satisfied or subordinated.
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Ava Martinez
•This is such a helpful summary! As someone new to aircraft financing, I'm curious about the timeline coordination between UCC and FAA filings. Should they be done simultaneously or is there a preferred sequence? Also, when you mention "comprehensive UCC search," are you looking at both the debtor's current state and the aircraft's physical location state, or just where the debtor is organized?
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