Aviation Law - Final Exam Questions & Answers

Your willingness to put up your property for collateral to secure payment of a loan. - Answer ️️ -What is Security Interest? Security Interest for a loan against land and buildings. - Answer ️️ -What is a Mortgage? Security Interest for a loan against anything other than land and buildings. - Answer ️️ -What is a Financial Statement? Skin in the Game & Cover the Equity - Answer ️️ -What are the two reasons for why a bank requires down payments? Express & Implied - Answer ️️ -What are the two types of warranties? - Merchantability = with every purchase in the US, there is a claim that it will perform in whatever use it is intended for. - Fitness for a Particular Purpose - Answer ️️ -What are the two types of Implied Warranties? - Lease = an agreement/contract that permits someone else to use an owner's aircraft. - Leaseback = the buyer purchases the aircraft from the seller, then turns around and leases it back to the seller for the seller's use. - Answer ️️ -What is the difference between a Lease and a Leaseback? - The lessee's primary motivation, in a lease forward, is to obtain the use of an aircraft without having to make the capital investment required to purchase one