A mortgaged aircraft can be used as collateral to a debt. A confirmed aircraft mortgage remains valid for ten years from the date of confirmation unless it is separately discharged. A valid aircraft mortgage can also be renewed, with the mortgage remaining valid for ten years from the date of renewal. The debt instruments used for aircraft mortgages are most commonly bearer bonds.
Provisions on aircraft mortgages are laid down in the Act on Aircraft Mortgages (211/1928) and the Vessel Mortgage Act (211/1927). For instructions on applying for the confirmation, renewal and discharge of an aircraft mortgage, see below or the document Aircraft mortgage instructions (L 3/2003).
Mortgage decisions are subject to a fee, see fees for services (aircraft registration and mortgaging).
Trafi will record a certification of the confirmation, renewal or discharge of an aircraft mortgage in both the debt instrument and the Aircraft Register.
Confirmation of an aircraft mortgage must be applied for in writing using the form intended for the purpose. The mortgage may be applied for by the owner of the aircraft or a party with claims on same (creditor). If the creditor is the applicant, the owner's written assent is required for the mortgage.
The mortgage application must uniquely identify the mortgage object and the monetary receivable(s) for the collateral of which the mortgage is confirmed. The application must include the capital, interest and any renewal and recovery fees.
Where applicable, the following must be attached to the application:
Renewal or discharge of an aircraft mortgage must be applied for in writing using the form intended for the purpose. When an aircraft mortgage is being renewed or discharged, the original bonds belonging to the mortgage must be attached to the application. Mortgage renewal may be applied for by the party who has the original bond in its possession.
If the original bearer bond is missing, the mortgage may be discharged once the bearer bond has been annulled at a District Court. In that case, the original decision of the District Court annulling the bearer bond and a certified copy thereof must be attached to the application.
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Finnish Transport Safety Agency