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Ownership of aircraft in the United States requires registration with the FAA. If the owner’s information on the insurance policy and FAA record does not match, defense of the claim and payment of damages may be delayed.

Global Aerospace

Ownership of aircraft in the United States requires registration with the FAA. If the owner’s information on the insurance policy and FAA record does not match, defense of the claim and payment of damages may be delayed.

Ownership of aircraft in the United States requires registration with the FAA. If the owner’s information on the insurance policy and FAA record does not match, defense of the claim and payment of damages may be delayed.

Morris Plains, NJ, November 01, 2021 (GLOBE NEWSWIRE) – As an aircraft ownership requirement in the United States, you must register your aircraft with the Federal Aviation Administration (FAA). It is not a difficult process and useful information is available on the FAA website. However, this is an important process for several reasons. One is simply that it is a legal requirement for all owners to register their aircraft and have the registration on board the aircraft.

light aircraft in hangar

light aircraft in hangar

The FAA makes this clear in Section 91.203 of the Federal Aviation Regulation (FAR), which states:

Except as provided in Sec. 91.715, no person may operate a civil aircraft unless it contains the following: (1) An appropriate and up-to-date certificate of airworthiness. Each United States Certificate of Airworthiness used to comply with this subparagraph (with the exception of a Special Flight Permit, a copy of the applicable operating specifications issued under section 21.197 (c) of this chapter , the appropriate sections of the air carrier manual required by parts 121 and 135 of this chapter containing the part of the operations specifications issued under section 21.197 (c) or an authorization under section 91.611) shall include the registration number assigned to the aircraft under Part 47 of this Chapter. However, the certificate of airworthiness does not need to have a special identification number assigned until 10 days after that number was first affixed to the aircraft. A revised Certificate of Airworthiness with an assigned special identification number, which has been affixed to an aircraft, can only be obtained upon request from the responsible flight standards office. (2) An effective US certificate of registration issued to its owner or, for operation in the United States, the second copy of the aircraft registration application as provided in § 47.31 (c), a certificate of aircraft registration as provided in Part 48, or a registration certificate issued under the laws of a foreign country.

Another reason for registering an aircraft is that insurers use FAA registration information to confirm that they are providing coverage to the legal owner of the aircraft. In addition, if legal action is taken following an incident, the insurer must confirm that it is participating in the defense of the legal owner.

If the owner’s information on the insurance policy and FAA record does not match, defense of the claim and payment of damages may be delayed.

Address old privileges

Another potential problem with aircraft ownership is the existence of privileges over the aircraft. As Merriam-Webster defines it, a lien is “a charge on real or personal property for the settlement of a debt or obligation ordinarily arising out of law enforcement.”

Common sources of aircraft privileges are privileges for the initial financing of the purchase of the aircraft, as well as privileges for repair or upgrade work performed. The person or organization doing the work may have a lien on the aircraft until they are paid for their services. If a claim is made, the insured is responsible for providing clear title to the aircraft, or having the lien holder included as the beneficiary on payment for the loss.

If any liens are discovered, their existence can negatively impact the settlement process, as it takes additional time and effort on the part of the owner to clear them. This must be taken care of before the insurer pays for repairs or a total loss. If not properly removed from the FAA database, the privileges can be decades old, with the aircraft having passed through several owners since the privilege was created. With bank mergers, the creditor bank with the original lien may have merged, the merged bank may have merged, etc. presenting a challenge to even identify the bank that has the authority to release the lien.

For this reason, it is important to perform a title search as part of the pre-purchase process when purchasing an aircraft. In this way, the liens can be identified and the current owner of the aircraft may be required to resolve them before the sale is made.

FAA re-registration requirement

Since October 1, 2010, aircraft owners are required to renew their aircraft registration every three years. If you don’t, the FAA can revoke the plane’s N number and all the administrative issues that result – particularly unfortunate issues considering that the registration renewal fee is negligible ($ 5 at the time). of this article) and the renewal process is very simple.

Aircraft owners receive a renewal notification from the FAA 180 days before their current registration expires. This notice informs the owner that they have three months to log into the FAA website and renew the aircraft registration using a code included in the notice.

If the process is not completed online within the three month period, the owner must complete a paper form and mail it to the FAA Registry in Oklahoma City, and the form must be filed with the FAA. before the expiration of the current registration. Due to potential fluctuations in USPS delivery times and other factors, owners should use the online renewal option if possible, and if not, submit their form well in advance of the deadline.

Another crucial action: return an FAA aircraft registration when you sell the aircraft

Just as important as registering an aircraft and renewing it if necessary, informing the FAA that you are no longer the owner of an aircraft after you sell it. Immediately after the closing of an aircraft sale, you must withdraw the aircraft registration certificate.

Sometimes referred to as a “permanent record” or “landline card,” it is officially known as Form AC 8050-3 and must be received by the FAA within 21 days of the sale. To return the form, you must provide the necessary information on the reverse side, sign it and mail it to the FAA using the address listed on the form.

Information on the return of the AC 8050-3 form and other issues related to the “duration and return” of an aircraft registration, such as the reasons why a registration could be revoked, canceled, transferred, etc. can be found in the Code of Federal Regulations online.

Be proactive: check your aircraft registration today

Given the legal and aviation insurance ramifications of failing to register or renew an aircraft, it is a good idea to periodically check the registration status of your aircraft. It can help you avoid the time it takes to resolve issues during the claims process and will also give you peace of mind.

You can do this efficiently by requesting an N number. If your research leaves you with questions about the status of your registration, you can contact the FAA Aircraft Registration Branch at 1-866-762-9434.

About Global Aerospace
Global Aerospace is a leading provider of aviation insurance and risk management solutions for the aviation and aerospace industries. Our more than 95 years of experience in aviation insurance allow us to develop personalized insurance programs structured around the needs of our customers. Known for our industry-leading customer service, we serve as a trusted partner to a wide range of aviation companies and their insurance producers. https://www.global-aero.com/

Contact with global aerospace media
Suzanne keneally
Vice-president, head of group communication
+1 973-490-8588

There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any title or any other product or service in this article. Further, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether an investment, investment strategy, security or related transaction is suitable for you based on your investment objectives, financial condition and risk tolerance. Consult your business advisor, lawyer or tax advisor about your specific business, legal or tax situation.

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