AIC Title Service, LLC and AvSure, Inc. Announce a New Aircraft Title Insurance Available During FAA Shutdown
AIC Title Service, LLC and AvSure, Inc. are writing to announce a new aircraft title insurance product that will allow parties to reduce risk and close transactions during the time the Federal Aviation Administration Civil Aviation Registry (“FAA Registry”) is closed by providing title insurance coverage for buyers, lenders and lessors.
As you know the government shutdown caused the FAA Registry close on October 1, and there is no end in sight. Because of this shutdown, parties have not been able to close deals and the aviation industry has ground to a halt, causing signiﬁcant economic harm to everyone in the industry
AvSure, Inc., together with its agents AIC Title Service,LLC and Global Aviation Title Insurance Agency LLC, Inc., are offering a new product that provides aircraft title insurance coverage so parties can close transactions during this period while the FAA Registry is shutdown.
Speciﬁcally, AvSure, Inc. will issue a binding Commitment, effective as of the closing of the transaction, which obligates AvSure to issue a title insurance policy, effective after the FAA re-opens and certain obligations are satisﬁed (i.e., the relevant transaction documents are ﬁled with the FAA and the relevant IR registrations are made within two (2) business days of the re-opening of the FAA Registry), which policy will insure that (i) the buyer owns the aircraft free and clear of any intervening liens and claims (except those of its own lender) and (ii) any lender ﬁnancing the transaction will have a valid and ﬁrst priority security interest in the aircraft. Put another way the policy will cover claims or losses that may arise between the date of the FAA Registry closing and the re-opening of the FAA, as long as the requirements related to document delivery and IR registrations (noted above) have been satisﬁed. (Of course, this is just a summary of the coverage and you will need to review the commitment and the policy to understand the coverage provided, including any exclusions.)
This just may be the key that will allow your transaction to close immediately.
Source: AIC Title Service, LLC http://www.trade-a-plane.com/company-search?id=60490