A IRCRAFT P URCHASE T RANSACTIONS W HAT Y OU N EED TO K NOW BEFORE T AKEOFF Frank C. Sutherland...

AIRCRAFT PURCHASE TRANSACTIONS

WHAT YOU NEED TO KNOW BEFORE TAKEOFF

Frank C. SutherlandBoardman & Clark LLP(608) 286-7243fsutherland@boardmanclark.com

Frank C. Sutherland | Boardman & Clark LLP 2

When is an escrow advisable?

1. Risk associated with geographic location

2. Reliability of the seller3. Timing of fund transfers/pre-

positioning funds4. Amount of deposit at risk

Frank C. Sutherland | Boardman & Clark LLP 3

Records review and approval

1. Specific requirements at time of LOI2. Status of review at time of PA3. Status of review, if any, at time of

closing4. Customer and strategic partner

requirements

Frank C. Sutherland | Boardman & Clark LLP 4

Required liability insurance for part-out transactions

1. Expectations for aircraft retirement versus return to service

2. Warranties regarding part-out3. Post-closing verification4. Indemnity obligations

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Dispute resolution

1. What law applies?2. What is the forum for disputes?3. Who will pay the lawyers?4. Deposit return provisions

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Obtaining clear title to assets

1. FAA (or national) aircraft registry and International Registry

2. Certain mechanics liens not necessarily disclosed

3. Ownership trace4. Warranties and Bill of Sale