Aviation Law exam

What is a security interest? - Answer ️️-It is a legal interest in an item of personal property that secures payment of a debt. For instance, a person or business may acquire a security interest in an aircraft by loaning money to the purchaser and obtaining a written security agreement signed by the purchaser. What right does the holder of a security interest have that other creditors do not? - Answer ️️-They can take possession of the aircraft even without judicial process if the owner does not pay the debt . Will a title search at the FAA Aircraft Registry in Oklahoma City reveal all kinds of valid security interests in aircraft? - Answer ️️-No. Unless it is filed with the FAA. If a lien holder fails to record the security agreement with the registry, a buyer who is not otherwise aware of that security interest takes clear title, and the lienholder's security interest is unenforceable.