Pursuant to 14 CFR § 91.23, a lease or conditional sales contract of a U.S.-registered large civil aircraft must contain a truth-in-leasing clause as its concluding paragraph, in large print and immediately preceding the space for the parties’ signatures. The required truth-in-lease clause must contain the following:
· Identification of the Federal Aviation Regulations under which the aircraft has been maintained during the previous 12 months prior to the execution of the lease or contract
· Certification by the parties of the aircraft’s status of compliance with applicable maintenance and inspection requirements
· The name, address, and signature of each person responsible for the operational control of the aircraft under the lease or contract of conditional sale
· Certification that the people named above understand their responsibilities for compliance with applicable Federal Aviation Regulations
· A statement that the responsible Flight Standards office has an explanation of factors bearing on operational control and pertinent Federal Aviation Regulations
This requirement does not apply to leases or conditional sales contracts involving foreign air carriers or certificate holders or to conditional sales contracts in which the aircraft has not been registered anywhere prior except as a new aircraft under a dealer’s aircraft registration certificate.
This regulation places additional requirements on individuals who operate large civil aircraft of U.S. registry subject to these leases and conditional sales contracts. More specifically, a copy of the leases or contracts must be provided to the Aircraft Registration Branch within 24 hours of their execution, a copy must remain in the aircraft, and notification must be given to the responsible Flight Standards office at least 48 hours before takeoff in the case of the first flight of that aircraft. This notification must include the location of the airport of departure, the departure time, and the registration number of the aircraft involved.
When disputes regarding aircraft leases or conditional sales contract arise, you need experienced legal representation and advice. Williams Mestaz, L.L.P., is a law firm focusing on aviation law, contract disputes, bet-the-company cases, and business divorce. Contact us at (602) 256-9400 and schedule a time to meet with us today.