tnelson
Well Known Member
Approaching the tail end of my build and have been planning a loan to finance the balance of my panel and engine. I’ve been in communication with NAFCO for some time and today they informed me that they are out of the kit financing business.
According to my contact: “ We had to end that program for now because the FAA changed their policy on kit registration. They now hold the position that if it isn’t a completed airplane, it shouldn’t be registered. In the past we were able to register the planes in kit form which allowed us to secure a lien against it, but if we can't register it then we can't enforce a lien and therefore the bank will no longer finance anything not completed and airworthy.”
Anyone else encounter this? Any other banks that still do kit loans? I’m really curious as to who at the FAA decided they needed a policy change and what problem they are trying to solve?
According to my contact: “ We had to end that program for now because the FAA changed their policy on kit registration. They now hold the position that if it isn’t a completed airplane, it shouldn’t be registered. In the past we were able to register the planes in kit form which allowed us to secure a lien against it, but if we can't register it then we can't enforce a lien and therefore the bank will no longer finance anything not completed and airworthy.”
Anyone else encounter this? Any other banks that still do kit loans? I’m really curious as to who at the FAA decided they needed a policy change and what problem they are trying to solve?