As a result of the ratification of the Cape Town Treaty by U.S. Congress, the legal priority of interest in aircraft collateral is established by registration of your interest with the International Registry of Mobile Assets (the IR or IRMA.) The Cape Town Treaty does not demand that you “register” your transactions with the IR; however, if you choose not to do so, any transactions which are registered with “the IR” will be considered “senior” to those transactions which are not. This is true even if the interest registered at the IR is registered significantly later than your transaction and regardless of whether you have properly filed your transaction with the FAA Aircraft Registry. The U.S. ratification does require that the transactions which are registered with the IR be filed with the FAA Aircraft Registry in addition to the IR Registration. Documents must be with the FAA within 60 days of the registration of any Prospective Interest. Registration of a Prospective Interest allows Lenders to register transactions that have not yet occurred, thereby securing their first priority position prior to the release of funds. We anticipate that the filings with the FAA will be helpful in discerning which “prospective” transactions were actually completed.
It may seem redundant to have two filing systems, but in truth, the dual system is advantageous. U.S. Lenders can be a part of the International community with more assurance of retrieving their collateral in the event of default. At the same time, they will maintain the benefits that only the U.S. Aviation Registry (the FAA) provides. The FAA Aircraft Registry maintains images of the actual documents rather than just skeletal information entered by the party registering the interest at the IR. The U.S. aviation public has the benefit of having access to images of the actual agreements, thereby allowing any mistakes to be corrected, and, if documentation is lost, a copy to be retrieved.
In order to register interests with the IR, each party to the conveyance must have obtained a USER License and a digital certificate. The digital Certificates allow the IR to identify who is entering information and “consenting” to the registration. You may apply for your User License and digital Certificate at the International Registry website (https://www.internationalregistry.aero) or you may retain the services of Dixie Aire Title Service, Inc. to obtain your license and certificate and act as your administrator. Please contact us for paperwork and detailed information on this service.
Airplanes with 8 seats or more (including the crew) or equivalent cargo space;
Helicopters with 5 seats or more (including the crew) or equivalent cargo space;
Engines capable of generating 550 Shaft Horsepower (or more) should be researched.
A quick word about why the US Title Research Report is separated from the IR Research Report. We can determine if something new has been recently added to the FAA records without incurring additional costs making it easy to bring US reports up to date immediately before a closing; however, the only way to confirm nothing new has been entered at the IR is to pull a new search certificate for which a fee is incurred; therefore in closing and escrow situations when the Seller is confident that there are no interests registered, the IR report is delayed until a day or two before closing to minimize the Gap time between the IR report and the Closing. Also, by separating the reports, customers who object to the IR may refuse those reports. If you would prefer a ‘combination US/IR Research Report, please let us know, as it is possible for us to combine the reports into a single report if you prefer.
When you order an International Research Report from Dixie Aire Title Service, Inc., our Specialist will obtain a Priority Search Certificate from the International Registry website based on the description you have provided. (See note regarding descriptions below)
The researcher will audit the entries and prepare a report reflecting the NEWEST Contract of Sale and any un-discharged International Interests. In the case of Airframes, our research will also compare the entries registered against any Authorization Codes issued. While our reports are issued in typed report form, if you would like a copy of the actual search certificate (s), we will happily provide it/them upon request.
Note regarding descriptions: The International Registry requested that aircraft and engine manufacturers provide them with description information to populate their system. Some of the manufacturers cooperated and some did not. Some of the descriptions provided do not resemble the data-plate description of the aircraft. A good example of this discrepancy is DeHavilland provided approximately three total descriptions for their aircraft and formatted them as DE HAVILLAND DASH 8 rather than DeHavilland DHC-8… They did not provide a description for the DHC-6 series at all and some of those do qualify under the “protocol’; therefore, you may receive an “IR Research Report reflecting a description which appears quite different that the U.S. description. If a manufacturer does not provide a description, there is an option to ‘free text’ entries. This may cause there to be more than one Search Certificate which appears to match the information provided. The IR will charge us for each Search Certificate we review and those costs will be passed on to you.
1. The registration number, make model and serial number of the airframe.
2. If engines or propellers are involved (which generate 550 s. h. p. or more), you will need their make, model and serial number(s) as they have separate records. Separate reports and costs will be generated.
3. Tell us how you would like the information forwarded to you (i.e. fax, e-mail or courier).
4. If it will help your bookkeeper, we will be happy to insert a reference (i.e. your customer’s name or client/matter number) on the report.
5. Prepayment information, Discover, Master-card or Visa are accepted. You may also request wiring instructions to wire your payment.
As a Professional User of the International Registry, Dixie Aire Title Service, Inc can register the purchase and lien interests on behalf of Registered Users with the International Registry.
Note: All parties to the interest to be registered must be registered users of the International Registry (IR). For example: to register a Contract of Sale both the Buyer and the Seller must be registered. If an International Interest is to be entered both the Borrower and the Lender must be registered. Dixie Aire can obtain a User License and digital certificate for you or your entity and act as your Administrator. No more worries about whether you are at the right computer or keeping up with the latest changes. We can take care of the registration details while you concentrate on your aircraft. For more information, please contact us.
With the ratification of the Cape Town Treaty, registration of interests at the International Registry of Mobile Assets (IRMA OR IR) has become an important part of business for many in the aviation field. Dixie Aire Title Service, Inc. now offers Administrative Services to handle IR certification and authorization procedures on behalf of your company.
We encourage both current and new customers to take advantage of these services in order to save yourself time and insure your transactions are handled in a professional and timely manner. As your administrator, Dixie Aire will obtain a one year User License and a digital certificate from the International Registry in your name or your company’s name. We will also, at your instruction, authorize any IR transactions that your company is a part of, communicate with the International Registry concerning any issues that may arise, and keep you up-to-date on when your certificate will expire so that you can avoid any lapse in business.
Dixie Aire’s services are convenient for when you’re on vacation or out of town on business. Because we do the work for you, you won’t need to worry about being at a specific computer to authorize a transaction. Though you’re still in charge of which transactions are acceptable, we’ll make sure the details are handled correctly and in a timely manner.
Upon request, we will send you the needed paperwork to act on your behalf.
If you have any further questions about the International Registry or Dixie Aire’s general services, please feel free to call us. We’ll be happy to talk to you and answer any questions or concerns you may have.
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