|INSURANCE TERMS DEFINITIONS
The EAGLE Protection Aircraft Loan Policy insures that your borrower is the owner of the aircraft. This goes beyond simply insuring that the FAA registration records are accurate. It says that even if the owner is not the FAA certificate holder, you are protected from interests in the aircraft held by others. Basically, we insure that you're dealing with the rightful owner.
Coverage is provided when your lien is impaired by a forgery occurring anywhere in the chain of ownership to the aircraft or in your security agreement.
Fraud or Duress
Similar to forgery, this coverage protects you in the event that any transfer document in the chain of aircraft ownership is not valid because it was obtained by fraud, undue influence or duress.
Incompetence or Incapacity
Coverage is provided when any document transferring ownership was signed by a person legally incapable of completing the transaction because of age, incapacity, or lack of partnership, corporate or trust authority.
Defective Filing or Recording of Documents
This coverage protects you against defects in any filed or recorded document necessary to establish your security interest in the aircraft and your borrower's ownership of it.
Unfortunately, it happens. Occasionally, unscrupulous persons will attempt to falsify a release of an unsatisfied security interest. If this should happen, we will cover ensuing losses to you, including the cost to restore your lien to the record.
Unrecorded State Tax Liens
Unrecorded Federal and State Tax Liens Coverage for up to $250,000 for Federal and $25,000 State is provided against tax liens which did not appear in the FAA records. Such State off-record liens may be enforced against the aircraft, if it lands In the taxing state.
Labor or Material Liens
We will protect your interest when prior liens are claimed for payment of services, labor or materials furnished to the aircraft before the policy date, and which your borrower did not agree to pay. And with limited exception, we will also protect you from post-policy labor, service or material providers asserting a lien right prior to yours.
Foreign Registry Matters
You are protected against claims that the aircraft's United States registration is invalid because it was not properly removed from a foreign registry. And, should a foreign lender seek to enforce its lien in the United States, the EAGLE Policy protects you.
Sometimes material cannot be retrieved from any recording system, including the FAA's, immediately after its submission. At the FAA this "blind spot" can last several hours, and could pose a risk to your lien. This risk is covered by the EAGLE Protection Aircraft Loan Policy.
Another gap problem can occur when a document is rejected for recording after it is filed. Without a recorded document, your interest is jeopardized, but with the EAGLE Policy you're fully protected.
Invalidity or Unenforceability of Your Lien
Coverage is provided against claims that your lien has not been properly signed, delivered, recorded, or is otherwise invalid or unenforceable.
Priority of the Lien
This coverage protects you from the interests of other lien holders who claim priority over your financing.
Engines and Propellers
Coverage is provided against liens and encumbrances recorded in the public records on the engines and propellers.
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