Introduction

In the modern commercial aviation industry, the acquisition of an aircraft is far more complex than an ordinary purchase of goods. Particularly in transactions involving commercial aircraft with purchase or financing values ranging from approximately USD 50 million to USD 100–150 million or more, airlines generally do not prefer to fund the entire purchase price from their own equity resources.

Instead, aircraft acquisitions are commonly structured through sophisticated financing arrangements involving a combination of bank loans, syndicated facilities, export credit agency-supported financing, finance leases, special purpose vehicles (SPVs), aircraft mortgages, corporate guarantees, assignments of insurance proceeds, and security interests under the Cape Town Convention.

Accordingly, where a Turkish airline acquires an Airbus or Boeing aircraft with a value of approximately USD 100 million, the transaction does not consist solely of executing an Aircraft Purchase Agreement. Behind the acquisition there will usually be a separate aircraft finance transaction supported by dozens of financing and security documents.

From the perspective of Turkish law, such structures must generally be examined under the Turkish Civil Aviation Act No. 2920, the Turkish Code of Obligations, the Turkish Commercial Code, the Enforcement and Bankruptcy Law, foreign exchange legislation, and, in cross-border transactions, the Cape Town Convention and the Aircraft Protocol.

Turkey acceded to the Cape Town Convention regime in 2011, and the Convention entered into force for Turkey on 1 December 2011. The fundamental purpose of this regime is to provide creditors financing high-value and internationally mobile assets, including aircraft, aircraft engines and helicopters, with predictable and internationally recognised security rights.

1. How Does an Airline Finance a USD 100 Million Aircraft?

A simplified example may illustrate the structure.

Assume that a Turkish airline intends to add a new aircraft to its fleet and that the aircraft has a financing value of approximately:

USD 100 million.

The airline could theoretically pay the entire purchase price from its own cash resources. However, such an approach could significantly reduce the airline’s available liquidity and is therefore not always commercially desirable, particularly for airlines operating large fleets.

The transaction may instead be structured as follows:

• USD 30 million equity contribution by the airline,
• USD 70 million bank or institutional financing.

From the lender’s perspective, however, the central question is:

What happens if the airline fails to repay the USD 70 million loan?

This question lies at the heart of aircraft finance law.

A lender will rarely wish to rely solely on the airline’s general creditworthiness. Instead, it will seek to bring the aircraft itself, together with the economic rights associated with the aircraft, into the core of the security package.

A typical financing may therefore involve several layers of protection, including:

Aircraft Mortgage + Assignment of Insurances + Guarantees + Account Security + Cape Town International Interest + IDERA.

2. Principal Parties to an Aircraft Finance Transaction

A typical aircraft financing involves considerably more parties than merely “the bank and the airline.”

Depending on the size and structure of the transaction, the following parties may be involved:

Borrower:
The airline or special purpose vehicle borrowing the funds.

Aircraft Owner:
The legal owner of the aircraft.

Operator:
The airline actually operating the aircraft in commercial service.

Lender:
The bank or financial institution providing the financing.

Facility Agent:
In syndicated financing, the bank administering the loan relationship on behalf of the lender group.

Security Agent or Security Trustee:
The party holding or administering security interests for the benefit of the lenders.

Manufacturer:
Airbus, Boeing or another aircraft manufacturer.

Insurer / Reinsurer:
The entities providing hull, liability and other aviation insurance coverage.

Guarantor:
A parent company, affiliate or other group entity guaranteeing repayment of the financing.

Certain transactions may also involve lessors, owner SPVs, export credit agencies, arrangers, hedge counterparties or swap providers.

Accordingly, aircraft financing is not based on a single loan agreement. It is typically a multi-document, multi-party transaction consisting of several interrelated agreements.

3. Facility Agreement: The Core Financing Document

The principal financing document is generally referred to as the Facility Agreement or Loan Agreement.

This document sets out the amount that the lender will make available and the terms on which the borrower must repay the financing.

For example:

Facility Amount: USD 70,000,000

The facility agreement will generally regulate matters such as:

• loan amount,
• currency,
• interest,
• interest calculation,
• repayment schedule,
• maturity,
• prepayment,
• default interest,
• representations and warranties,
• information undertakings,
• financial covenants,
• negative pledge,
• insurance obligations,
• maintenance obligations,
• sanctions compliance,
• change of control,
• events of default,
• acceleration,
• enforcement.

In aircraft finance transactions, the lender is concerned not only with the borrower’s financial condition but also with maintaining the technical and economic value of the aircraft.

Accordingly, the finance documents may require the airline to maintain the aircraft properly, keep the required insurance policies in force, preserve certificates of airworthiness, maintain licences and registrations and refrain from transactions that could prejudice the lender’s security.

4. Conditions Precedent: When Does the Lender Advance the Funds?

Execution of the facility agreement does not necessarily mean that the bank will immediately transfer USD 70 million.

Before utilisation of the loan, the borrower will normally be required to satisfy a substantial number of documentary and legal requirements.

These are known as Conditions Precedent, or “CPs.”

The lender may, for example, require:

• Aircraft Purchase Agreement,
• Bill of Sale,
• corporate authorisations,
• board resolutions,
• specimen signatures,
• legal opinions,
• aircraft registration documents,
• airworthiness documents,
• insurance certificates,
• aircraft mortgage,
• International Registry registrations,
• IDERA,
• guarantee agreements,
• account security documents.

Until the relevant CPs are satisfied or waived, the lender may not be obliged to make the loan available.

For this reason, the closing checklist is one of the most important documents in an aircraft finance transaction.

Aircraft delivery, transfer of title, loan utilisation and establishment of security interests must be coordinated as closely as possible.

5. What Is an Aircraft Mortgage?

One of the principal forms of security in aircraft financing is the aircraft mortgage.

At first glance, the terminology may appear unusual.

An aircraft is not immovable property. Nevertheless, the Turkish Civil Aviation Act provides a specific registered security mechanism over aircraft and refers to this security as an aircraft mortgage.

Under Article 69 of the Turkish Civil Aviation Act No. 2920, an aircraft may be mortgaged as security for a debt. The mortgage gives the creditor a security right over the economic value of the aircraft.

The legislation also permits a mortgage to secure not only existing debts but also future or conditional obligations.

Accordingly, where a lender advances USD 70 million to finance an aircraft, the aircraft itself may constitute the primary collateral for that financing.

6. How Is an Aircraft Mortgage Created Under Turkish Law?

Article 70 of the Turkish Civil Aviation Act establishes two principal elements for the creation of an aircraft mortgage:

First: an aircraft mortgage agreement must be concluded between the owner and the creditor.

Second: the mortgage must be registered with the Turkish Civil Aircraft Registry.

The mortgage agreement must be made in writing and the signatures of the parties must be notarised.

Accordingly, simply including a provision in the facility agreement stating that:

“Aircraft shall constitute security for the Loan”

would not in itself be sufficient to create a Turkish-law aircraft mortgage.

A separate Aircraft Mortgage Agreement should be prepared in accordance with Turkish law and the appropriate registration formalities must be completed.

7. Why Must the Mortgage Be Registered?

Registration is a critical element of aircraft financing.

The lender does not merely seek a contractual claim enforceable against the borrower.

It generally seeks a proprietary security right that can also be asserted against third parties.

Accordingly, one of the principal closing questions for lender’s counsel is:

“Has the mortgage been duly registered?”

The registration of the aircraft mortgage with the Turkish Civil Aircraft Registry is therefore essential to establishing and perfecting the lender’s security position under Turkish law.

8. What Obligations May Be Secured by the Mortgage?

An Aircraft Mortgage Agreement need not be limited solely to principal repayments under the facility.

Depending on the transaction structure, the parties may seek to include within the definition of Secured Obligations amounts such as:

• loan principal,
• interest,
• default interest,
• fees,
• break costs,
• indemnities,
• enforcement expenses,
• hedging liabilities,
• other obligations under the finance documents.

Turkish aviation legislation also contemplates the registration of the amount of the secured claim and the applicable interest rate.

Where the amount of the claim is uncertain or variable, the mortgage may be structured by reference to a maximum secured amount.

This can be particularly important for floating-rate facilities, revolving credit arrangements or financings covering multiple payment obligations.

9. Can Several Aircraft Secure the Same Loan?

Yes.

In fleet financings, it is possible for more than one aircraft to secure the same financing obligations.

Under Turkish aviation legislation, several aircraft may be mortgaged in favour of the same creditor to secure a single obligation.

For example, a lender may provide USD 300 million to finance the acquisition of four aircraft and require security over all four aircraft.

Such structures are particularly common in:

fleet financing transactions.

10. Foreign Currency Aircraft Mortgages

International aircraft finance transactions are frequently denominated in USD or EUR.

Turkish aviation legislation allows aircraft mortgages to secure obligations payable in foreign currency, subject to the applicable statutory framework and regulatory requirements.

In addition, large cross-border aircraft financings must be analysed under the Decree No. 32 on the Protection of the Value of the Turkish Currency and the Central Bank of the Republic of Türkiye regulations governing foreign currency borrowing by Turkish residents.

These rules contain detailed requirements and exceptions concerning foreign currency loans obtained by Turkish legal entities.

Accordingly, every cross-border aircraft financing involving a Turkish borrower should include a separate foreign exchange regulatory analysis.

11. Why Is an Assignment of Insurances Important to the Lender?

The mere physical existence of the aircraft is not sufficient security for the lender.

An aircraft worth USD 100 million may:

• sustain significant damage,
• become a total loss,
• lose substantial economic value following an accident.

For this reason, insurance forms an integral part of aircraft finance transactions.

The lender will generally require the aircraft to be insured for appropriate risks and adequate amounts.

The finance documents may therefore include an:

Assignment of Insurances

or another equivalent security document.

The lender or security agent may also be recognised under the relevant insurance policies through appropriate endorsements, loss payable clauses and insurer or reinsurer acknowledgements.

12. Statutory Protection of Mortgagees Under Turkish Aviation Law

One of the notable features of Turkish law is that the Turkish Civil Aviation Act provides specific statutory protection to aircraft mortgagees in relation to insurance proceeds.

Where an aircraft is insured by the owner or on the owner’s behalf, the aircraft mortgage may, as a matter of law, extend to the relevant insurance proceeds.

Furthermore, an insurer may not generally argue that it was unaware of an aircraft mortgage duly recorded in the relevant registry.

Where an aircraft is lost or damaged in an accident, the registered mortgagee may, subject to the contractual arrangements and applicable statutory provisions, have rights over insurance proceeds up to the amount secured by the mortgage.

Accordingly, Turkish law itself offers aircraft lenders a significant level of statutory protection.

However, international lenders rarely rely solely on statutory rights.

They will normally also seek contractual protection through insurance assignments, policy endorsements, insurer acknowledgements and loss-payee provisions.

13. Parent Company Guarantees and Other Forms of Guarantee

Although an aircraft is valuable collateral, lenders frequently require additional forms of credit support.

For example, the aircraft may be owned by a special purpose vehicle whose only substantial asset is the aircraft itself.

In such a case, the lender may require a:

Parent Company Guarantee.

The structure might therefore be:

Owner SPV
→ legal owner of the aircraft

Airline
→ operator of the aircraft

Parent Company
→ guarantor of the financing

Under the guarantee, the guarantor undertakes responsibility for payment where the borrower fails to perform its obligations under the finance documents.

Where Turkish companies provide guarantees, however, several issues must be examined separately, including:

• corporate authority,
• representation,
• corporate benefit,
• capital maintenance,
• restrictions applicable to intra-group security.

Where an individual provides personal security, the mandatory form requirements applicable to suretyship under the Turkish Code of Obligations may also become relevant.

Accordingly, the use of the term “guarantee” in an English-law finance document does not automatically mean that the instrument will have precisely the same legal characterisation under Turkish law.

14. Why Is a Share Pledge Used?

Where the aircraft owner is an SPV, the lender may seek security not only over the aircraft but also over the shares in the owner company.

The commercial rationale is straightforward.

In the event of default, the lender may wish to have remedies relating not merely to the aircraft itself but also, subject to applicable law, to the company owning the aircraft.

Accordingly, a security package may include a:

Share Pledge Agreement.

The legal requirements applicable to such a pledge will depend on factors including:

• the corporate form of the owner,
• the nature of the shares,
• the jurisdiction of incorporation,
• applicable company law.

15. Account Pledges and Revenue Security

The lender may also seek security over certain bank accounts.

An:

Account Pledge

may be created over accounts such as:

• debt service account,
• reserve account,
• insurance proceeds account,
• maintenance reserve account.

This provides the lender with additional protection over the borrower’s cash flows and designated funds.

16. Assignment of Lease Receivables

The aircraft owner and the operator need not be the same entity.

For example, an SPV may own the aircraft and lease it to an airline.

In such a structure, one of the owner’s principal economic assets is not merely the aircraft but also the right to receive:

lease rentals.

The lender may therefore require an:

Assignment of Lease Receivables.

This may allow the lender, subject to the relevant contractual and legal requirements, to obtain security over lease income generated by the aircraft.

17. Assignment of Manufacturer Warranties and Other Rights

New Airbus or Boeing aircraft are commonly delivered with various manufacturer warranties and contractual rights.

In major aircraft finance transactions, the lender may seek direct or indirect rights over:

• manufacturer warranties,
• engine warranties,
• maintenance agreements,
• insurance proceeds,
• lease rentals,
• requisition proceeds.

The rationale reflects a fundamental principle of aircraft financing:

The lender seeks to protect not only the aircraft itself but also the wider package of economic rights that preserves the aircraft’s value.

18. Why Is the Cape Town Convention Important in Aircraft Financing?

An aircraft is fundamentally different from most other secured assets.

A building located in Turkey will remain in Turkey.

An aircraft located in Istanbul, however, may be in London a few hours later, New York the following day and Dubai shortly thereafter.

A security regime based solely on national law may therefore create significant uncertainty for international lenders.

The Cape Town Convention and Aircraft Protocol were developed to reduce this uncertainty.

The regime seeks to provide a common international framework for security rights over high-value mobile equipment and to facilitate the financing of aviation assets through internationally recognised priority and enforcement mechanisms.

19. What Is an International Interest?

One of the central concepts under the Cape Town regime is the:

International Interest.

Where the requirements of the Convention and Aircraft Protocol are satisfied, interests arising from aircraft financing, leasing or title reservation arrangements may be registered with the International Registry.

Accordingly, a major aircraft finance closing may require not only registrations with the:

Turkish Civil Aircraft Registry

but also registrations with the:

International Registry.

This allows qualifying security interests to benefit from the international priority system established under the Cape Town Convention.

20. Are an Aircraft Mortgage and a Cape Town International Interest the Same Thing?

No.

This distinction is important.

An Aircraft Mortgage is a proprietary security right created under Turkish law and registered with the Turkish Civil Aircraft Registry.

An International Interest is an international security interest governed by the Cape Town Convention regime.

In major cross-border financings, these two mechanisms are generally not regarded as alternatives.

They are often used together as complementary forms of security.

A lender may therefore seek both:

Turkish-law Aircraft Mortgage + Cape Town International Interest.

21. What Is an IDERA and Why Is It Important?

One of the most significant documents in aircraft financing is the:

Irrevocable De-Registration and Export Request Authorisation – IDERA.

In simplified terms, an IDERA authorises a designated party, subject to the relevant legal conditions, to request the deregistration and export of the aircraft.

Article XIII of the Aircraft Protocol provides the legal framework for this mechanism, and Turkey has made the relevant declaration applying Article XIII.

The Turkish Directorate General of Civil Aviation also provides procedures and forms for the registration and cancellation of IDERAs.

For a lender, this can be particularly important.

In a default scenario, the lender’s commercial objective may not be to leave the aircraft grounded in Turkey for an extended period.

Instead, the lender or lessor may seek to:

• recover possession,
• deregister the aircraft,
• export it from Turkey,
• sell it,
• re-lease it,
• place it with another operator.

IDERA can therefore play a central role in repossession and enforcement planning.

22. What Happens If the Borrower Becomes Insolvent?

One of the most significant risks in aircraft financing is the insolvency of the borrower or airline.

Turkey has made an important declaration under Article XI of the Aircraft Protocol.

Turkey applies:

Alternative A

to relevant insolvency proceedings and has selected a 60-calendar-day waiting period.

Under the general logic of Alternative A, the insolvency administrator or debtor must, within the applicable waiting period, either cure the relevant defaults and agree to perform future obligations or, where the conditions are satisfied, make the aircraft object available to the creditor.

This regime is viewed as an important protection for aircraft financiers because it reduces uncertainty surrounding aircraft assets in insolvency proceedings.

23. What May Constitute an Event of Default?

Lender remedies under an aircraft finance agreement will normally be triggered by an:

Event of Default.

Typical Events of Default may include:

Payment Default:
Failure to pay principal, interest or other amounts when due.

Breach of Financial Covenant:
Failure to comply with agreed financial ratios.

Insurance Default:
Failure to maintain required aviation insurance.

Maintenance Default:
Failure to maintain the aircraft in accordance with required maintenance standards.

Cross Default:
Default by the borrower under other material financial indebtedness.

Insolvency:
Commencement of bankruptcy or restructuring proceedings.

Invalidity of Security:
Invalidity or loss of effectiveness of an aircraft mortgage or other security document.

Unlawfulness:
The financing or operation of the aircraft becoming unlawful.

Sanctions Event:
The borrower, guarantor or transaction becoming affected by applicable sanctions restrictions.

Following an Event of Default, the lender may consider remedies such as acceleration of the loan, enforcement of security and the exercise of remedies available under applicable domestic law and the Cape Town regime.

24. Does the Lender Automatically Become the Owner of the Aircraft Upon Default?

No.

Turkish law imposes an important limitation in this respect.

Under Article 83 of the Turkish Civil Aviation Act, the mortgagee generally obtains satisfaction from the aircraft through enforcement proceedings.

An agreement providing that the aircraft will automatically become the property of the lender simply because the debt has not been paid would generally be invalid.

This reflects the broader prohibition against:

lex commissoria.

Accordingly, a clause stating:

“If the borrower fails to repay the loan, the aircraft automatically becomes the property of the bank”

would not constitute a valid Turkish-law enforcement mechanism.

However, remedies available under the Cape Town Convention, including rights relating to possession, deregistration and export, must be assessed separately in light of the specific transaction.

25. Can the Mortgage Be Transferred to Another Lender?

Yes.

Aircraft finance facilities may remain outstanding for many years and the relevant debt may later be transferred to another lender.

Under Turkish aviation law, where a claim secured by an aircraft mortgage is assigned, the mortgage may also pass to the new creditor.

The debt and the security are not treated as entirely independent from each other for this purpose.

This becomes relevant in transactions involving:

• loan transfers,
• secondary debt trading,
• refinancing,
• lender replacement.

26. How Does Aircraft Refinancing Work?

An airline may originally finance an aircraft using relatively expensive debt.

Several years later:

• the airline’s credit profile may improve,
• market interest rates may change,
• the outstanding loan balance may decrease,
• another lender may offer more favourable financing terms.

In such circumstances, an:

Aircraft Refinancing

may be implemented.

The new lender funds the repayment of the existing financing.

The existing lender releases its aircraft mortgage.

A new security package is then established in favour of the refinancing lender.

Accordingly, refinancing closings require careful coordination of:

funds flow + mortgage release + new mortgage registration.

27. Turkish Law or English Law?

Not all documents in an international aircraft finance transaction must necessarily be governed by the same law.

A transaction may, for example, be structured as follows:

Facility Agreement: English law

Aircraft Mortgage: Turkish law

Share Pledge: law of the aircraft owner’s jurisdiction of incorporation

Guarantee: English law or Turkish law

Insurance Assignment: law determined by the relevant policy and transaction structure

Cape Town Registrations: Cape Town Convention and Aircraft Protocol regime

Aircraft financing is therefore a classic multi-jurisdictional transaction.

A single aircraft may involve Turkish, English, Irish, US, French or other legal systems simultaneously.

This makes coordination between local counsel and international aviation finance counsel essential.

28. Why Is a Legal Opinion Required?

A foreign bank advancing USD 70–100 million generally does not wish to interpret Turkish law independently.

It will therefore commonly request a:

Turkish Legal Opinion

from Turkish counsel.

Such an opinion may address matters including:

• due incorporation of the borrower,
• capacity to execute the finance documents,
• corporate approvals,
• binding nature of the finance documents,
• valid creation of the aircraft mortgage,
• required registrations,
• enforcement under Turkish law,
• insolvency considerations,
• recognition of foreign judgments or arbitral awards,
• stamp tax and other formalities,
• application of the Cape Town Convention.

Aircraft finance transactions therefore require not only transaction documentation but also detailed legal due diligence and enforceability analysis.

29. How Does an Aircraft Finance Closing Work in Practice?

Consider a USD 100 million aircraft transaction.

The closing may proceed through the following stages.

Stage 1 – Finance Documents

The borrower and lender execute the Facility Agreement.

Stage 2 – Security Documents

The Aircraft Mortgage, guarantees, assignments and other security documents are executed.

Stage 3 – Satisfaction of Conditions Precedent

Lender’s counsel reviews the Conditions Precedent checklist.

Stage 4 – Funding

The bank advances the financed portion of the purchase price in accordance with the agreed funds flow.

Stage 5 – Delivery

The manufacturer or seller delivers the aircraft to the buyer.

Stage 6 – Transfer of Title

Title passes pursuant to the Bill of Sale and related transfer documentation.

Stage 7 – Aircraft Registration

The aircraft is registered with the Turkish Civil Aircraft Registry.

Stage 8 – Mortgage Registration

The Aircraft Mortgage is registered in favour of the lender.

Stage 9 – Cape Town Registrations

Where applicable, the relevant International Registry registrations are completed.

Stage 10 – IDERA

The relevant IDERA registration procedures are completed.

As a result, within a coordinated closing process, an asset worth tens or hundreds of millions of dollars may undergo simultaneous:

ownership + financing + security + registration

steps.

30. Why Does the Lender Require So Many Different Forms of Security?

At first sight, it may appear excessive for a lender to require:

• aircraft mortgage,
• insurance assignment,
• guarantee,
• share pledge,
• account pledge,
• lease assignment,
• Cape Town international interest,
• IDERA

for the same financing.

However, the basic principle is straightforward:

Each form of security addresses a different risk.

Aircraft Mortgage
→ protects the economic value of the aircraft.

Insurance Assignment
→ addresses the risk of damage or total loss.

Parent Guarantee
→ addresses borrower credit risk.

Share Pledge
→ provides indirect protection regarding the aircraft-owning SPV.

Account Pledge
→ provides security over cash flows.

Lease Assignment
→ provides security over rental income.

International Interest
→ provides international priority and recognition.

IDERA
→ facilitates deregistration and export.

Accordingly, an aircraft finance security package consists of several complementary legal instruments rather than one single form of collateral.

31. Why Is Turkey an Important Jurisdiction for Aircraft Financing?

Turkey’s large domestic and international aviation market, combined with the extensive fleets operated by Turkish airlines, has made aircraft acquisition, leasing and financing increasingly significant.

From a legal perspective, Turkey is particularly important because two layers of security coexist.

On the one hand, there is:

the aircraft mortgage regime and Turkish Civil Aircraft Registry under the Turkish Civil Aviation Act No. 2920.

On the other hand, there is:

the Cape Town Convention and Aircraft Protocol regime governing International Interests, IDERA and certain insolvency remedies.

Turkey has elected Alternative A with a 60-day waiting period and has also adopted the IDERA mechanism under Article XIII of the Aircraft Protocol.

This combination is of central importance when international aircraft lenders assess Turkish law risk.

32. Conclusion

The acquisition of an Airbus or Boeing aircraft may economically resemble secured asset financing, but legally it is far more sophisticated.

The financing of an aircraft worth USD 50–150 million is commonly structured through a combination of:

Aircraft Purchase Agreement + Facility Agreement + Aircraft Mortgage + Insurance Assignment + Guarantees + Security Documents + International Interest + IDERA.

Under Turkish law, one of the lender’s principal forms of security is the aircraft mortgage registered with the Turkish Civil Aircraft Registry pursuant to the Turkish Civil Aviation Act No. 2920.

Turkish aviation legislation also provides important statutory protections by allowing the mortgage, in certain circumstances, to extend to insurance proceeds.

Nevertheless, contemporary aircraft finance transactions are not generally structured solely around a domestic aircraft mortgage.

Because Turkey is a party to the Cape Town Convention and Aircraft Protocol, lenders may also benefit from the international framework governing registration of International Interests, IDERA, creditor remedies and insolvency matters.

Turkey’s adoption of Alternative A with a 60-day waiting period is particularly significant for cross-border aircraft lenders.

Accordingly, a major aircraft financing in Turkey requires a combined analysis of aviation law, banking and finance law, secured transactions, insurance law, foreign exchange regulations, insolvency law and private international law.

Ultimately, the fundamental question in aircraft finance is not merely:

“How will the purchase price of the aircraft be paid?”

The more important question is:

“How will the lender financing a USD 100 million aircraft legally protect its investment throughout the life of the loan and in the event of default?”

Modern aircraft finance documentation is essentially structured to provide the most secure and commercially workable answer to that question.