Wednesday, September 28th  2016

Requirements


To help the process go smoother, use this CHECKLIST to prepare in advance the documents and items most likely needed to process your loan.


GENERAL REQUIREMENTS:

Completed loan application for each applicant or guarantor.
Copies of your last two years federal tax returns for each applicant or guarantor.
Aircraft specification sheet, unless applying for preapproval.
Insurance binding including breach of warranty or lenders interest endorsement insurance naming TruBank as the loss payee.
Evidence of aircraft pre-purchase inspection.
Title search.
All necessary and appropriate signed loan documentation.
Bank may require copies of log books and photos of the aircraft.
Bank may require aircraft appraisal.
Current year-to-date pay stub.
Copy of signed purchase agreement.
IF YOU ARE SELF EMPLOYED: IF YOU ARE A PARTNERSHIP:
General requirements above, plus:
Last two years of your business federal tax returns.
Most recent balance sheet and income statement for your business.
General requirements above, plus:
Last two years of partnership's federal tax returns and K-1's.
Copy of partnership agreement.
IF YOU ARE A CORPORATION: IF YOU ARE AN LLC:
General requirements above, plus:
Last two years of business federal tax returns.
Last two years financial statement.
Current year to date balance sheet and income statement.
Articles of incorporation.
Corporate by-laws.
Personal guarantees by the major stockholder for all loans to closely held corporations.
General requirements above, plus:
Last two years of business federal tax returns..
Last two years financial statement.
Current year to date balance sheet and income statement.
Articles of Organization.
Operating Agreement.
Personal guarantees by the major stockholder for all loans to closely held corporations.
INSURANCE REQUIREMENTS:
Evidence of insurance must be provided to the bank prior to loan funding.
Registered owner must be listed as the primary insured (In the case of a leased aircraft, the registered owner must be listed as an additional loss payee.)
Aircraft must be identified by manufacturer, model, year, serial number, and FAA registration number.
Coverage must include all risks for physical damage for both in flight and on the ground.
Coverage must be for at least the amount financed.
Generally, deductibles should not exceed $1,000.
The policy must include TruBank as the loss payee under the standard loss payable clause.
The policy must include breach of warranty or lenders interest endorsement for the amount financed.
The policy shall not prohibit the loss payee from making the insurance payments upon the default of the owner.
The policy must contain a 30-day written notification of cancellation to TruBank.