USA Patriot Act

(“Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act”

When the USA Patriot Act became law in October of 2001, the aircraft escrow procedures became more exact.   Among others, sellers of aircraft (as well as financiers/lenders) are defined in the USA Patriot Act as “Financial Institutions”.   

Financial Institutions were reminded in the USA Patriot Act to “know their customer” and to exercise great diligence so that money laundering would not occur as part of an escrow transaction.  

Further, the USA Patriot Act specifically defines money transmission businesses (licensed companies that accept funds from a party and transmit those funds to another party) and confirms that legitimate, licensed money transmission businesses do exist.   Aero Records is not a money transmission business; however, the USA Patriot Act does allow escrow transactions for the bona fide sale and purchase of personal property as long as the escrow company
(1) accepts funds only from the contracted purchaser
(2) disburses funds only to the contracted seller or to a very few others who are integral to the transaction: such as an existing mortgage holder to pay off a lien in exchange for a release; to a specific mechanic to pay off a lien in exchange for a release; and to brokers identified prior to the closing (not after). 

Documents-only Escrow Services

Sometimes the parties wish to pass funds among themselves but desire to have the releases or satisfactions, bills of sale and registration documents strategically placed in Oklahoma City so that immediately upon delivery of the aircraft and closing of the transaction in the field, those interests can be properly filed with FAA and if applicable, registered at the International Registry.  Aero Records is happy to oblige the parties and act as escrow agent for the documents.

Documents and Funds Escrow Services

More often than not, it is convenient for the parties to deposit the funds and lodge the necessary closing documents in Oklahoma City in advance of the delivery of the aircraft and culmination of the transaction so that a simultaneous exchange of funds for documents (with immediate filing and registration of interests) can take place.  Our escrow agents are very experienced and efficient in assisting the parties all the way through these more complex transactions.

Filing Services

And on occasion the parties completely close the transaction in the field, bundle the documents up to show the ownership and registration changes and overnight them to Aero Records for immediate filing with the Aircraft Registration Branch of the Civil Aviation Registry.   Our documentation specialists will look the documents over, advance necessary FAA fees and file the documents with the FAA We will obtain the appropriate and necessary International Registry authorization codes and register any applicable interests with the IR.

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