REMARKS / After two major FAA/industry meetings and two years of formal comment-gathering, the FAA has finished its policy re-think about non-U.S. citizen trusts for ownership of aircraft on the U.S. registry (“N-registered”) as reflected in the Federal Register. Greg Cirillo, Esq. of Wiley Rein LLP has concise and excellent summary. Comment: Among various details, note that now the FAA will require filing not only of the relevant trust agreement to spell out the trustee / beneficiary relationship, but also any document that will “legally affect a relationship under that trust”.

Greg Cirillo, Esq. of Wiley Rein LLP write-up available here.

Link to announcement from this Blog’s New Rules and Developments available here.

Legal take-away:

Some more transparency on whatever is the “deal” between trustee and beneficiaries on control of the aircraft’s ownership and operation.

Practical take-away:

Requires meticulous reading of the entire notice of clarification.

Nothing revolutionary here.

AVIATION (U.S. TRUSTEES FOR NON-CITIZEN TRUSTORS AND BENEFICIARIES) / In major public meetings in 2012 and 2011, and in gathering responses to its notices in the Federal Register April 26, 2011 and February 9, 2012, the FAA has undertaken a major review of it, “policies and practices regarding the registration of aircraft in the United States involving U.S. citizen trustees and non-U.S. citizen trustors and beneficiaries”. Speaking very broadly, the “U.S. citizen trustees” are often banks and the “trustors and beneficiaries” are various non-U.S. business interests that own aircraft and who wish to have a United State, “N-registered”, status for such aircraft. The day before this post the FAA announced a major policy clarification which this blog will address this weekend in its “Comment” section. This is a major development in a very intense discussion between the FAA and the aviation community during the past two – now going on three – years.

“Notice of Policy Clarification for the Registration of Aircraft to U.S. Citizen Trustees in Situations Involving Non-U.S. Citizen Trustors and Beneficiaries.”

June 18, 2013. Notice of FAA Policy Clarification.