What is the International Registry of Mobile Assets (the “Registry”), and why should you consider registering your sale or interest in an airplane, engine, or helicopter? If you don’t know the answers to these questions, consider first reading our article explaining the workings of the Registry.
However, if you do know the answers, let us ask you a follow-up question: What are Transacting User Entities and Professional User Entities, and why are they essential to registering your interest in a mobile asset on the Registry? Technically, that was two questions, but understanding both entities and how they interact is integral to an efficient and accurate closing.
First, we will explore the basics. To register your interest in an eligible airframe, engine, or helicopter, you need a Transacting User Entity (“TUE”) account on the Registry. To obtain a TUE account, you must first apply for such with the Registry. Once an application for TUE has been made, it will be approved or denied. If approved, an email notification will be sent to the email address listed on the TUE application with further instructions describing how to finalize the TUE. Eventually, a TUE may no longer be necessary, in which case the TUE can be disabled.
It’s also worth mentioning that a TUE account is not indefinitely active. TUE accounts last for one year, during which time they appear as “Active” on the Registry. Once the year is over and the account expires, its status on the Registry will be “Suspended”. While “Suspended,” all normally available functions, such as the ability to register an interest, are unavailable. However, you may still log into your account to renew the account. The account can be renewed one month before expiration and within three months after expiration. After three months, the “Suspended” account becomes “Disabled.” Once disabled, reapplications must be made to reestablish the TUE on the Registry.
In some instances, especially where multiple TUEs are involved, it can be helpful for TUEs to centralize their authority to register interests. For those transactions, TUEs can grant authorization for registration to a third party called a Professional User Entity (“PUE”). A PUE acts on behalf of a TUE, with the proper authorization and direction from that TUE, and a TUE can approve or refuse PUE requests and revoke previously granted authorizations. Take care when granting PUE authorization, because any action taken by a PUE on behalf of a TUE is binding.
The TUE/PUE process can be a confusing part of the already complex Registry, but there is fortunately one final category to explore: the Administrator. Administrators are normally professional entities, such as law firms like ours, that handle the details associated with TUEs and PUEs. So, if at any point since “Let us explain the basics” you found yourself confused, there is still hope. Our firm can serve as your administrator and answer all of your questions, so please contact us today; we are here to help.
