When a potential customer requests aircraft lending , Banterra Aircraft Finance representatives will request the following information:

  • Pilot ratings
  • Total and recent flight hours
  • Recent attendance to FAA Wings Safety Programs
  • Date of last flight review and/or proficiency training
  • Current medical certificate information
  • Aircraft incident/accident history
  • Time in make and model of desired aircraft you’re insuring
  • Location and airfield where aircraft is/will be located and hangered or tie down storage
  • Aircraft details, hours, options, and avionics upgrades Operations-Part 91 or Part 135

Required Insurance for Aircraft Loans

Lenders require full liability and hull coverage on aircraft loans sufficient to cover the bank’s loan and lien amount. Most aviation insurance policies are underwritten by a handful of aviation specialty insurance carriers through licensed insurance brokers. Once one agent gives an applicant’s information to various underwriters, the quotes get recorded by those carriers and the premiums are “locked in.”  Loss history, age of applicant, recent flight time experience, time in make and model, and formal recent proficiency training all play a factor in not only the final premium cost, but also what the underwriter may be willing to offer for both “In-Motion” and “Not-In-Motion” deductibles. 

The insurance policy should indicate a 30-day cancelation notice to the lender, along with the lienholder’s endorsement.  The lienholder endorsement covers the bank’s security interest and is generally known also as a “Breach of Warranty.”  The purpose of this endorsement not only verifies that both the policy holder (aircraft owner) has sufficient hull coverage, but also the lender is covered.  The “Breach of Warranty” is to further cover the lender in the event of a total loss. This means the policy holder has an accident that the insurance underwriter deems as a non-covered event, based on provisions within the actual policy.

For more information, get in contact with one of Banterra’s experienced Aircraft Finance representatives today.

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