What is required for the bank to maintain priority on an aircraft security interest?

To maintain priority on an aircraft security interest, it is essential for the bank to file the security agreement with the Federal Aviation Administration (FAA). This step is crucial because filing provides public notice of the bank's security interest in the aircraft. Under the Federal Aviation Act and the associated regulations, this filing establishes the bank's claim against the aircraft and ensures that, in the event of default or bankruptcy, the bank has a legal right to recover its investment before other potential creditors.

The security interest in the aircraft must be properly documented and recorded to be enforceable against third parties. Without this filing, other parties might make claims on the aircraft with a higher priority, possibly jeopardizing the bank's ability to recover its assets.

Therefore, filing with the FAA is a key action that solidifies the bank's legal standing and protects its financial interest regarding the aircraft.