by: Smiley George
"The Internet has opened a whole new world of opportunity for even the smallest home-based business owner. There is countless number of new self-made millionaires that achieved their newfound success on the Internet. These new millionaires are no different from you and I. They started their Internet business from the ground ... found a niche and built their success one day at a time" Shelly Lowery
Step 1: Have a Product you can deliver online.
Does it sound outrageous? Yes, /No, Whichever. Delivery a product online is one among various legitimate ways of making money online or increases your income online. The product that you deliver online, need to be intangible and flexible. I give examples E-books, Affiliate programs, Information products like MLM (Multi-level Marketing.) Please do not get me wrong here, products can be deliver offline too, but this is the old fashion way. Hey folks! We are now in a globalize community. Activities need to be done fast as to remain in business. Come to think of it, lectures including examinations are done online. Those in the Finance institutions including the Aviations industry are not left in the dark. For funds are paid and transferred online and airline tickets are booked online. So, what are you waiting for? Get a product that you know you are good at and can deliver online. Need more help, visit www.web-source.net
Step 2: You need to have prompt response.
Wait a second. Have you given it a thought that when you begin to activate your email account with any of the service providers like yahoo.com/mail.com among others, your get instant response to all the followed instructions, like user Id has already been used and some other stuff. Remember, your are not to spend 24/7/365 on the net. There are other appointments to attend to. For further clarifications and better understand, visit www.getresponse.com
Step 3: You need a way to accept payment online.
A must have, if you really want to make money online, increase your income online and possibly remain online. If this step is absent from your website, even if the previous two is present, you are only reducing the number of visitors to your site. Kindly re-consider upgrading or building a new website with all these features in it. Please visit www.paypal.com/www.2checkout.com/www.clickbank.com
my little advice. Ensure maximum security.
Step 4: You need a traffic website.
Your website have been upgraded with step 1 to step 3 in it. But that's not all. You need to attract more visitors to your site just as honey attracts bees. The higher the number of visitors to your site, chances is that (if your product is on a high demand) your sales will rise. Consider these options:
a. promotion
b. link exchange
c. freebies
you will agree with me that the above tips are practical and applicable if rigorously followed. And once you start making your money and your income starts to increase, forget me not.
About the Author
Smiley George,is a seasoned Proofreader.He is into Events Marketing and Managemet and freelance writing. He is to publish soon two books,Ad and Exam Success Secrets. Email: jamesbourn@yahoo.co.uk
Wednesday, November 26, 2008
4 tips to Increase your income online part 2
10 Best Ways to Justify Your Airplane Purchase
by: Pat Redmond
For those of us who've caught the "aviation bug" finding a way to justify the purchase of an airplane becomes an all consuming mental task. Make this task simple by choosing the appropriate reasons from the list below:
1. The airplane will make money for me.
This one actually works! Learn about leasebacks and/or using your airplane in your business by visiting: http://www.airplanenoise.com/answers_to_why.htm
2. My business will benefit from my increased productivity when I fly instead of drive.
Save time and money by flying yourself! You can avoid hours at the security gate and layover time by flying yourself. Most regional trips will be completed in a fraction of the time you'd spend driving or flying commercially. Learn more by clicking the link: http://www.airplanenoise.com/business_justification.htm
3. The airplane will keep my family together.
Many people find their children off to college and their parents staying in the south. A personal aircraft allows you to stay in contact and maintain the relationships that are so important to you. After all. . . is there anything more important than our relationships with our family and friends?
4. Learning to fly provides a new challenge.
Most of us have dreamed about flying since our childhood. What's preventing us from taking that step? Life's too short to procrastinate!
5. I can vacation every weekend!
No doubt, every weekend can be earmarked for a new destination. Start with you own state, and expand to other states. Visit museums, recreation areas, friends . . . the sky's the limit! Start with this list: http://www.airplanenoise.com/great_trips.htm
6. I can make an airplane payment instead of an IRS payment!
With minimal business use (30%), your airplane purchase may be a depreciable asset. New tax laws significantly increased the tax benefit to owners. Learn more by downloading a FREE audio TeleClass at: http://www.airplanenoise.com/download_teleclass.htm
7. I can enhance my children's educational experience.
Children learn more from an experience rather than sitting in a classroom or reading a book. Trips to Washington D.C., Niagara Falls, Gettysburg, PA, Kitty Hawk are all great reasons to fly the family. Re-live your childhood at the same time.
8. Flying as therapy?
Well, believe it or not, some people fly for its therapeutic benefits. Life's problems seem to disintegrate as altitude increases. Try it next time you're feeling overwhelmed by life's challenges!
9. An airplane is a terrific status symbol.
If status is what you're looking for. . . you can't beat an airplane. Not only are pilots looked up to, but when it's your own airplane. . . "You've arrived!" No one even needs to know that the airplane is generating a positive cash flow.
10. I just WANT one!
Sometimes we just need to satisfy our desires!
"I'm worth it."
"I've worked hard and this is my reward."
"I only live once!"
I know you can add to this list!
--------------------------------------------------------------------------------
About the Author
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for FREE aircraft purchase tips and tools, visit her site at http://www.airplanenoise.com
ADDRESSING SAFETY WITH NEW AVIONICS
by: Pat Redmond
"How safe is it?" Along with "How much does it cost?" this is a question we often hear when someone is considering flight training as an option for depleting his or her discretionary income. Our industry has experienced a marked reduction in overall accidents and statistically, a 27.8% reduction in the most recent 7 years! During this same time period General Aviation fatal accidents dropped 32.6% to just over 1 fatality for every 100,000-flight hours.
Of these accidents, 80% are either partially or completely pilot induced, with weather related accidents and controlled flight into terrain (CFIT) accounting for the majority of fatalities.
So what is the industry doing to address the issue of pilot errors?
Bendix/King has taken the bull by the horns and addressed this challenge with several new avionics products, and Cessna has taken the next step by including the Bendix/King advanced avionics package in their aircraft.
Situational Awareness: With its moving map and IFR approach capability, the KLN94 GPS provides added safety through increased situational awareness. This GPS with its full color screen is as easy to operate, as it is to view.
Weather: Bendix/King Data Link Weather features a state-of-the-art data link system to bring textual and graphical weather to your cockpit with a high speed, high bandwidth system. With the KDR 510, weather information (including METARs, TAFs, and PIREPs) is automatically updated and displayed on your KMD 550 (multi-function display) in your cockpit. For a small monthly fee, you can also receive NEXRAD radar and additional weather products that promote additional weather avoidance capability.
Controlled Flight Into Terrain (CFIT): The KMH 880 Multi-Hazard Awareness System combines traffic and terrain avoidance features in one unit. Combined with the KDR 510 and displayed on the KMD 550, you can have all the situational awareness available to ensure an up-to-the-second picture of your flight situation.
Workload Reduction: The KMD 550 Multi-Function Display (MFD) lets you spend less time looking at your instruments and more time flying your aircraft. The system gives you the information you need without added clutter, all while reducing the time required to manage each safety system. Along with its capability to display traffic, weather, terrain and moving map information, the KMD 550 also provides a wealth of reference information to the pilot including airports, NDBs, intersections, VORs, special-use airspace, victor airways, rivers, roads, lakes, cities and towers. When interfaced to the KLN 94, the KMD 550 can also display holding patterns, procedure turns and DME arcs for even greater situational awareness. Most importantly, this MFD is simple to use and sports a bright, razor-sharp display!
So, how much safer can General Aviation become? It seems to me that the sky's the limit! Who would have guessed that today's General Aviation aircraft would have these capabilities? And I suppose the question follows . . . “What else is possible?” Link: http://bendixking.com
About the Author
Pat Redmond, Brighton, Mi usa
airplanenoise@airplanenoise.com
http://www.airplanenoise.com
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for more FREE tips like these, visit her site at http://www.airplanenoise.com
Advanced Aviation Gadgets
by: Lance Winslow
Well in aviation the toys for pilots are getting a lot better, for instance the GPS-PDAs with sectional charts on them. Also lots of other data like the J-Aide and Jeppeson airport contacts once you arrive. All this makes flying easier, less complicated and more enjoyable. AvMap EKP-III C
http://www.avshop.com/catalog/product.html?productid=3781
and even more cool are the ones with all the bells and whistles; Such as loading it with an International Data Base. Hell now the CIA can have all the civilian data along with their intelligence information. Of course this newest Industry finds itself with many new players as pilots are generally not having a problem affording new toys and it saves all those large flight bags and Knee Boards and clips. You can still buy the clipboards and I have one when I drive the Blitz Mobile mobile command center across the country hunting for the latest technologies it has maps and important numbers to do business from the highway. Many truck drivers and railroad conductors use such boards and in the NAVY Pilots use them and even probably torpedo bombers did too; remember George Bush Senior flew a torpedo bomber?
Back to our GPS Toys and PDA devices; Another one of the more unique ones is the EnFlight Text Weather Devise which you can google to get all the specs, definitely worth a look see. All of these devises also allow for National Security so no more private pilots in C-182s fly into restricted areas.
These companies are also careful whom they send these devises to, for obvious reasons. Just think you could be flying your own private plane with a little PDA devise and go have a blast with your newfound freedom. Another cool devise and one of my favorites is the Pocket test which you can look up on Google. This is a cool devise to help you from getting lost and it has just about too many features to list, too bad it was not Windows CE based, I just cannot trust the longevity of Palm in the market place and hope our military is not so stupid to buy into there hype for military versions. One thing going for it is its size. Very small.
We did like the MapTech unit also because we can use it on a laptop, Handheld GPS unit of PDA GPS unit, with terrain CAD capabilities. This unit has many other purposes for General Civil Engineering, Forestry, Mobile Car Washing scheduling and routing, Aviation, Hiking, Fishing, Diving, Trucking, you name it. It also has features from NOAA for weather; I would recommend this as the best all-purpose unit I have thus yet found. It also works with ESRI software. So we like this for its versatility across industries. Good for us too with the blitz mobile to take the route with the least amount of hills for fuel consumption conservation and wear and tear on a 300,000-mile truck. Another of the best units we looked at was the
http://www.teletype.com/pages/tracking.html
which can be used like a Top Secret "Bloodhound Unit" and we can use this for car wash truck tracking, can be used for just about any real use to help you find your self or units. This is a way we can covertly track our units so employees do not screw off and kill profits and lie about where they were and how long they were there. Also in our survey we looked at the SatellinkTech units and found a lot of other cool features there;
http://www.satellinktech.com/product/merlin_air_main.htm .
This is a great tool, like the other units is does provide real time data such as; Airport observations and forecasts (text), Area forecasts (text), Upper wind forecasts (text), Pilot reports (text and onboard processed graphics), Icing and Turbulence forecasts (graphical), Status of restricted, prohibited, and military training airspace (text and onboard processed graphics), Location of other aircraft on instrument flight plans (onboard processed graphics), FAA alerts and advisories, Aircraft Situational Display.
What is also of interest is how much all these companies work together so that they can provide all the same data to all their customers. This does not mean one is not better than the other. For our purposes we chose the Tele Type unit with all the features, which we may implement in the future. I hope this review of products has assisted you in learning more about the technology. Many of these PDA technologies will be available for nearly any business small or large.
About the author:
Lance Winslow is a retired entrepreneur, Pilot and works with the World Think Tank; http://www.WorldThinkTank.net/wttbbs
Please click here for more aviation articles.
Aircraft Mechanic's Liens In
by: Greg Reigel
Aircraft Mechanic Liens In Minnesota
By Gregory J. Reigel
If you provide storage, repair, maintenance or other services to aircraft, you have the ability to assert a lien on that aircraft and retain possession until you have been paid. This is commonly referred to as a mechanic’s lien.
What isn’t as commonly known is that, in Minnesota, you don’t necessarily lose your lien rights if you no longer have possession of the aircraft. The situation arises when an owner pays you with a check and leaves with the aircraft. Later, the bank dishonors the check. Now what?
Under Minnesota Statute § 514.221, you can re-assert your mechanic’s lien against an aircraft by filing a verified statement and description of the aircraft and the work done or material furnished. The Statement must be filed with the “appropriate office under the Uniform Commercial Code.” This would be the FAA’s Aircraft Registry in Oklahoma City, OK.
The verified statement must include N-number, make and model of the aircraft, amount owed for the services and date of last work. The statement must be signed in ink, with title if on behalf of a corporation or limited liability company and must be accompanied by the $5.00 filing fee.
Also, if the owner of the aircraft is located in Minnesota, you may want to file the statement with the Secretary of State. Although it is not necessary to perfect your lien, it will provide notice to anyone who doesn’t know to check with the Aircraft Registry.
This is called “perfecting” your mechanic’s lien and must be done within 90 days after you provide the work, materials or service. Once perfected, you now have a lien on the aircraft.
Perfection secures the amount you are owed with the aircraft. You then have several options. First, in order to sell the aircraft, the owner will need to pay you and obtain a release before the owner can give a buyer clear title to the aircraft.
Second, you also have the ability to repossess and foreclose on the aircraft. This means you can force a sale of the aircraft and then receive payment out of the proceeds of the sale. Any excess money is given to the owner.
Under the first option, you run the risk of having to wait until the owner attempts to sell the aircraft. The second option gives you more control, but is also more costly than simply waiting. However, under either option you are definitely in a better position to get paid than you would be without the lien.
About the Author
Greg is an aviation attorney, author and holds a commercial pilot certificate with instrument rating. His practice concentrates on aviation litigation, including insurance matters and creditor’s rights, FAA certificate actions and aviation related transactional matters. He can be reached via e-mail at greigel@aerolegalservices.com or check out his website at www.aerolegalservices.com.
AIRCRAFT OWNERSHIP: IS THE TIME RIGHT?
by: Pat Redmond
In the hours and days immediately following the tragic attacks on America of 9/11, there was much speculation about the effects on the general aviation industry. While the events of September 11, 2001 have had a significant impact on the economy as a whole, sales of personal aircraft in Michigan have experienced a surprising boost.
Certainly, the convenience of personal transportation has played a major role in this increase as airport lines and security have become more time consuming. The reduction of flights resulting from the airline cost-cutting have limited flexibility for the business person and affected the productivity of companies relying on commercial transportation.
These factors alone can’t explain surge of people joining the flying community for more than just pleasure. Rebates, low and 0% interest rates, training allowances, and yes, even the IRS played a role in creating an environment that has introduced more people to the benefits of aircraft ownership and had an effect similar to that seen after the passage of the General Aviation Revitalization Act of 1995.
The IRS is here to help you? Well, believe it or not, a new tax law passed earlier this year represents a renewed attempt by our nation’s leaders to jumpstart the economic recovery. The bill applies to new airplanes acquired after September 10, 2001, and before September 11, 2004, and provides tax savings from economic stimulus provisions included in the Internal Revenue Code designed to encourage investment in capital assets. Visit your local airport and you’re sure to see plenty of forty and fifty year old aircraft operating for both business and pleasure. Even prior to the new tax law, Congress recognized that capital investment is an important part of our economy, and therefore allowed a five year depreciation of these assets. To further encourage investments, they do not require the depreciation to be spread evenly over the five years, but through a concept know as “double declining balance,” greatly accelerate depreciation during the first two years of ownership. Now with the additional incentives of 30% bonus depreciation on new airplanes, tax deferral opportunities are greatly expanded.
So how might a business person benefit from these new changes? First of all, the impact of these depreciation changes greatly reduce net cash investment for the purchase of a new airplane. Specifically, an operator in the 40% tax bracket who can successfully write off his aircraft ownership expense may have no cash investment in the airplane during the first four years. Additionally, when properly structured, many taxpayers have an opportunity to convert personal use into business use. The Internal revenue code provides an optional method of taxing an individual for personal use of an aircraft which many times amounts to less than 10% of the actual deductions flowing from the investment. Consult your tax professional prior to purchasing your new airplane or ask your Aircraft Dealer for the name of an Aviation Tax Specialist to set up your purchasing entity.
And you say you’re not a pilot? Local aircraft dealers like Suburban Aviation, Inc. in Lambertville, Michigan will actually teach you to fly your new airplane and even reimburse your expenses when you purchase a new Cessna airplane from them. Most of today’s pilots learned to fly in a Cessna airplane and the majority of these pilots continue to experience the freedom and flexibility that flight offers in one of Cessna’s many single engine models. For 75 years, Cessna has been the leader in general aviation aircraft providing a safe and reliable alternative to commercial airlines and the automobile.
So if your business can benefit from improved efficiency and tax savings, why not consider a company airplane? There are few tax saving opportunities as effective as fully depreciating an aircraft on a five year accelerated basis, and with today’s interest rate environment, a well-structured transaction often results in little or no after tax cash flow holding costs during the early years of ownership. Of course, arriving at your meeting on time and with all your luggage can also be pretty convincing!
ABOUT THE AUTHOR
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for more FREE tips like these, visit her site at http://www.airplanenoise.com
Aircraft Ownership. . . Is the Time Right?
by: Pat Redmond
Current tax incentives and the evolving tax code have given thousands of people reasons to purchase their first new airplane .
In the hours and days immediately following the tragic attacks on America of 9/11, there was much speculation about the effects on the general aviation industry. While the events of September 11, 2001 have had a significant impact on the economy as a whole, sales of personal aircraft in Michigan have experienced a surprising boost.
Certainly, the convenience of personal transportation has played a major role in this increase as airport lines and security have become more time consuming. The reduction of flights resulting from the airline cost-cutting have limited flexibility for the business person and affected the productivity of companies relying on commercial transportation.
These factors alone can’t explain surge of people joining the flying community for more than just pleasure. Rebates, low and 0% interest rates, training allowances, and yes, even the IRS played a role in creating an environment that has introduced more people to the benefits of aircraft ownership and had an effect similar to that seen after the passage of the General Aviation Revitalization Act of 1995.
The IRS is here to help you? Well, believe it or not, a new tax law passed earlier this year represents a renewed attempt by our nation’s leaders to jumpstart the economic recovery. The bill applies to new airplanes acquired after September 10, 2001, and before September 11, 2004, and provides tax savings from economic stimulus provisions included in the Internal Revenue Code designed to encourage investment in capital assets. Visit your local airport and you’re sure to see plenty of forty and fifty year old aircraft operating for both business and pleasure. Even prior to the new tax law, Congress recognized that capital investment is an important part of our economy, and therefore allowed a five year depreciation of these assets. To further encourage investments, they do not require the depreciation to be spread evenly over the five years, but through a concept know as “double declining balance,” greatly accelerate depreciation during the first two years of ownership. Now with the additional incentives of 30% bonus depreciation on new airplanes, tax deferral opportunities are greatly expanded.
So how might a business person benefit from these new changes? First of all, the impact of these depreciation changes greatly reduce net cash investment for the purchase of a new airplane. Specifically, an operator in the 40% tax bracket who can successfully write off his aircraft ownership expense may have no cash investment in the airplane during the first four years. Additionally, when properly structured, many taxpayers have an opportunity to convert personal use into business use. The Internal revenue code provides an optional method of taxing an individual for personal use of an aircraft which many times amounts to less than 10% of the actual deductions flowing from the investment. Consult your tax professional prior to purchasing your new airplane or ask your Aircraft Dealer for the name of an Aviation Tax Specialist to set up your purchasing entity.
And you say you’re not a pilot? Local aircraft dealers like Suburban Aviation, Inc. in Lambertville, Michigan will actually teach you to fly your new airplane and even reimburse your expenses when you purchase a new Cessna airplane from them. Most of today’s pilots learned to fly in a Cessna airplane and the majority of these pilots continue to experience the freedom and flexibility that flight offers in one of Cessna’s many single engine models. For 75 years, Cessna has been the leader in general aviation aircraft providing a safe and reliable alternative to commercial airlines and the automobile.
So if your business can benefit from improved efficiency and tax savings, why not consider a company airplane? There are few tax saving opportunities as effective as fully depreciating an aircraft on a five year accelerated basis, and with today’s interest rate environment, a well-structured transaction often results in little or no after tax cash flow holding costs during the early years of ownership. Of course, arriving at your meeting on time and with all your luggage can also be pretty convincing!
About the Author
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for more FREE tips like these, visit her site at http://www.airplanenoise.com
AIRCRAFT OWNERSHIP: IS THE TIME RIGHT?
by: Pat Redmond
In the hours and days immediately following the tragic attacks on America of 9/11, there was much speculation about the effects on the general aviation industry. While the events of September 11, 2001 have had a significant impact on the economy as a whole, sales of personal aircraft in Michigan have experienced a surprising boost. Certainly, the convenience of personal transportation has played a major role in this increase as airport lines and security have become more time consuming.
The reduction of flights resulting from the airline cost-cutting have limited flexibility for the business person and affected the productivity of companies relying on commercial transportation.
These factors alone can’t explain surge of people joining the flying community for more than just pleasure. Rebates, low and 0% interest rates, training allowances, and yes, even the IRS played a role in creating an environment that has introduced more people to the benefits of aircraft ownership and had an effect similar to that seen after the passage of the General Aviation Revitalization Act of 1995.
The IRS is here to help you? Well, believe it or not, a new tax law passed earlier this year represents a renewed attempt by our nation’s leaders to jumpstart the economic recovery. The bill applies to new airplanes acquired after September 10, 2001, and before September 11, 2004, and provides tax savings from economic stimulus provisions included in the Internal Revenue Code designed to encourage investment in capital assets. Visit your local airport and you’re sure to see plenty of forty and fifty year old aircraft operating for both business and pleasure. Even prior to the new tax law, Congress recognized that capital investment is an important part of our economy, and therefore allowed a five year depreciation of these assets. To further encourage investments, they do not require the depreciation to be spread evenly over the five years, but through a concept know as “double declining balance,” greatly accelerate depreciation during the first two years of ownership. Now with the additional incentives of 30% bonus depreciation on new airplanes, tax deferral opportunities are greatly expanded.
So how might a business person benefit from these new changes? First of all, the impact of these depreciation changes greatly reduce net cash investment for the purchase of a new airplane. Specifically, an operator in the 40% tax bracket who can successfully write off his aircraft ownership expense may have no cash investment in the airplane during the first four years. Additionally, when properly structured, many taxpayers have an opportunity to convert personal use into business use. The Internal revenue code provides an optional method of taxing an individual for personal use of an aircraft which many times amounts to less than 10% of the actual deductions flowing from the investment. Consult your tax professional prior to purchasing your new airplane or ask your Aircraft Dealer for the name of an Aviation Tax Specialist to set up your purchasing entity.
And you say you’re not a pilot? Local aircraft dealers like Suburban Aviation, Inc. in Lambertville, Michigan will actually teach you to fly your new airplane and even reimburse your expenses when you purchase a new Cessna airplane from them. Most of today’s pilots learned to fly in a Cessna airplane and the majority of these pilots continue to experience the freedom and flexibility that flight offers in one of Cessna’s many single engine models. For 75 years, Cessna has been the leader in general aviation aircraft providing a safe and reliable alternative to commercial airlines and the automobile.
So if your business can benefit from improved efficiency and tax savings, why not consider a company airplane? There are few tax saving opportunities as effective as fully depreciating an aircraft on a five year accelerated basis, and with today’s interest rate environment, a well-structured transaction often results in little or no after tax cash flow holding costs during the early years of ownership. Of course, arriving at your meeting on time and with all your luggage can also be pretty convincing!
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for more FREE tips like these, visit her site at http://www.airplanenoise.com
Aircraft Purchase Agreements
by: Greg Reigel
Aircraft Purchase Agreements
Why Use An Aircraft Purchase Agreement?
It always surprises me when a potential aircraft buyer is unsure of whether he or she should use a purchase agreement when buying an aircraft. Most of these individuals have purchased homes and no doubt used a purchase agreement in such transactions. Yet, many of these same individuals would spend the same amount of money to purchase an aircraft, and often times a great deal more money, without the protection of a written aircraft purchase agreement.
Aircraft purchase agreements should be used in almost every aircraft sale transaction. First, the law in most states requires that a contract for an amount greater than $500.00 be in writing in order for it to be enforceable. This is called the statute of frauds. Although exceptions to this legal doctrine exist, complying with the law is usually safer than hoping you will be able to take advantage of an exception.
Further, using an aircraft purchase agreement can also help avoid confusion and misunderstandings. If the agreement clearly explains how the transaction will happen, when it will happen and what is included in the deal, the greater the likelihood that the buyer and seller will each know the other party’s expectations and the less chance for surprises or misunderstandings.
What Terms Should Be Included?
The number and complexity of the terms that should be included in an aircraft purchase agreement will often times be dictated by the type and value of the aircraft being purchased/sold. Although by no means inclusive, the following terms provide a good place to start.
Identify the Parties. The agreement should identify who is selling the aircraft and who is buying the aircraft. Although this sounds simple to do, it isn’t always clear who is the seller and who is the buyer. It is very common for aircraft to be registered in the name of a corporation or limited liability company. In that case, the individual with whom you are negotiating is not the owner of the aircraft and should not be listed as the seller. The registered owner of the aircraft should be identified as the seller.
The buyer on the other hand, can be an individual or a corporation or limited liability company. If an individual is the buyer, that person will be listed and upon registration will be the record owner of the aircraft. To fully take advantage of release and indemnity language discussed in greater detail below, the seller may also want to consider having an individual buyer’s spouse execute the purchase agreement.
If a corporation or limited liability company will be registering the aircraft, the purchase agreement should identify that entity as the buyer. Alternatively, an individual can sign an agreement as the buyer and, as long as the agreement allows the buyer to assign his or her rights under the agreement, that individual may still assign the agreement to a corporation or limited liability company prior to closing. The corporation or limited liability company then becomes the buyer and can close on the transaction without the individual ever entering the chain of title. From a liability perspective, this can be important.
Identify the Aircraft. The aircraft purchase agreement should identify the aircraft with as much detail as possible. At a minimum, it should include the make, model, N-number and serial number for the aircraft. Ideally, a list of all avionics, logbooks, handbooks, additional equipment and any accessories should be included. Also, if the seller intends to retain certain items, those items should be specifically identified and excluded from the transaction. By taking the time to detail exactly what is and isn’t being sold, you will prevent misunderstandings at delivery.
Purchase/Sale Price. The agreement should specify how much is being paid for the aircraft. If the buyer will be giving the seller a deposit or earnest money, that fact should be included. Also, what happens to the deposit when it is given to the seller? Will the money be placed in escrow or simply held by the seller? If an escrow agent is not involved, the buyer will need to obtain some assurance that his or her deposit will not simply disappear into the seller’s pocket making the buyer’s recovery from the seller difficult or impossible if the transaction does not close. The agreement should also state under what conditions the seller must refund the deposit to the buyer.
The buyer’s method of payment should also be stated. Is it a cash transaction or will financing be involved? If financing is involved, the buyer may want to include language that makes the transaction contingent upon the buyer obtaining financing on terms acceptable to the buyer. That way, if the buyer isn’t able to obtain satisfactory financing, the buyer will not be forced to complete the purchase on financially unacceptable terms.
Will other consideration be given to the seller, such as a trade? If so, to the extent that it is possible, the item(s) to be traded to the seller should be identified with the same amount of detail used to describe the aircraft being purchased. This will help avoid later confusion.
Documents. The agreement should include a statement about which documents the seller will sign and deliver to the buyer at closing. Usually this includes a Bill of Sale (FAA Form 8050-2) and a signed current Registration Form (FAA Form 8050-3).
Pre-purchase inspection. In most transactions, the buyer will want to have a pre-purchase inspection performed on the aircraft. The purchase agreement can specify who will perform the inspection, what qualifications that individual must possess and where the inspection will take place. Also, the buyer should make the agreement contingent upon the buyer’s satisfaction with results of the inspection. Although the buyer is usually responsible for the expenses associated with a pre-purchase inspection, the agreement should address which party is responsible for what expenses related to the inspection.
Warranties. It is possible to include a variety of warranties in the purchase agreement representing certain conditions of the aircraft (e.g. warranties of airworthiness, merchantability, fitness for a particular purpose etc.). However, due to space limitations most of these warranties will not be discussed here.
From a buyer’s perspective, the warranty of title is probably most important. This warranty ensures that the buyer receives title to the aircraft free and clear of any liens or mortgages. Although the buyer will still want to obtain a title search of the FAA Registry’s records for the airplane, having the warranty of title included in the purchase agreement will help to minimize the risk of any unrecorded liens or interests in the aircraft.
Most sellers will want to include a disclaimer in the purchase agreement stating that the buyer is purchasing the aircraft "As-is". This language is intended to limit the seller’s responsibility for any defects or unknown conditions in the aircraft. If the buyer is having a thorough pre-purchase inspection performed by a qualified mechanic familiar with the specific aircraft, inclusion of this disclaimer in the purchase agreement is probably not a great concern for the buyer.
Choice of Law/Venue. If the transaction involves a buyer and seller from different states, it may be prudent to include language in the purchase agreement that governs what law applies to the transaction and where any disputes would have to be resolved.
Waiver and Release of Liability. The seller will want waiver and release of liability language in the purchase agreement to limit potential liability for injury or damage sustained by the buyer arising out of the buyer’s use of the aircraft. The language should be in bold, all caps letters to make sure it is obvious and not buried in the fine print of the purchase agreement.
Waiver and release of liability language will not release a seller from responsibility for the seller’s intentional acts or gross negligence. Nor will it prevent possible claims from third-parties who are injured or damaged by buyer’s use of the aircraft or from the buyer’s minor children. However, it will prevent the buyer, and the buyer’s spouse if the spouse has signed the purchase agreement, from suing the seller if a defect in the aircraft causes an accident that results in injury or damages.
What Remedy Does An Aircraft Purchase Agreement Give You?
First, an aircraft purchase agreement is not a 100% guarantee that a buyer or seller will not be sued. In this litigious world, I don’t know that such a guarantee is possible. Further, the purchase agreement alone does not make anyone do anything. If a buyer or seller does not want to comply with his or her obligations, the purchase agreement will not change that. However, the purchase agreement will give you the ability to go to court and have a judge make the non-performing or “breaching” party comply with his or her obligations.
If the purchase agreement is drafted clearly and with sufficient detail, it may be possible to have the court specifically enforce the agreement (e.g. make the breaching party do what the purchase agreement says he or she is supposed to do). An example would be where a buyer refused to complete a transaction even though the seller and the aircraft complied with all of the terms of the purchase agreement. In this case, a court could force the buyer to purchase the aircraft.
Alternatively, the court may award money damages for losses incurred by the non-breaching party. An example of this is when a seller refuses to return a deposit even though the buyer has complied with all of the terms of the purchase agreement and has a right to return of the money. In this situation, a court could enter a judgment against the seller in the amount of the unreturned security deposit.
Conclusion
An aircraft purchase agreement is a valuable tool to ensure that each party to an aircraft purchase transaction receives what is expected. It prevents confusion and misunderstanding and provides security that a party will have recourse if the other party to the transaction fails to perform as required. With minimal up-front time and expense, both buyers and sellers can protect their interests and maximize the likelihood of an uneventful closing and purchase.
ABOUT THE AUTHOR
Greg is an aviation attorney, author and holds a commercial pilot certificate with instrument rating. His practice concentrates on aviation litigation, including insurance matters and creditor’s rights, FAA certificate actions and aviation related transactional matters. He can be reached via e-mail at greigel@aerolegalservices.com or check out his website at www.aerolegalservices.com.
Airventure 2003. . . WOW!
by: Pat Redmond
If you're just getting back from OshKosh, I'm sure you'll agree. . . Great Show!
In the seven years that I've made the pilgrimage, I've still not seen it all!
This year, I committed to see parts of the show that I'd still not seen before.
I visited the Fly Market - a collection of vendors selling everything from aircraft parts to T-shirts.
I walked through the Airbus Beluga and was amazed by its capabilities.
This year was the first year I ate from one of the food concessions! In the past, I've left the grounds for a lunch but found that I was losing too much valuable Airventure time.
But even with a 4 day trip, it's impossible to see everything! I'll just have to go back again next year!
Things I still need to see at OshKosh:
1. I haven't been to see the Warbirds yet.
2. Haven't been to the flight line for the airshow.
3. Haven't experienced the nightlife at the campgrounds, including the beer tent and live music.
4. Need to see KidVenture where kids create and learn with the NestleQuick Bunny!
5. Haven't camped under my wing. . .
6. In fact, I haven't flown into OSH! Appleton was quite a bit calmer, but perhaps I'm missing an important part of the Airventure experience.
Well, it's a year away from next year's show, but I'm making my plans now.
How about you?
Link: http://www.airventure.org/2003/avtoday_index.html
--------------------------------------------------------------------------------
Pat Redmond, Brighton, Mi usa
airplanenoise@airplanenoise.com
http://www.airplanenoise.com
Pat Redmond, helps business owners who are tired of long lines and baggage claims, fly their way to freedom! Enjoy dinner with your family tonight! To learn more about the General Aviation Business, sign up for more FREE tips like these, visit her site at http://www.airplanenoise.com
Ann Coulter vs. One Billion Arabs
by: Scott C. Smith
In a recent column, Ann Coulter expressed indignation regarding an apparent Federal Aviation Administration policy not to perform searches on more than two Arabs at a time. I was not aware of this policy, but not surprisingly, Coulter would like all Arabs stopped and searched. You know, because they’re Arab. I think Coulter is applying some sort of twisted logic to this subject. Something along the lines of, “The terrorists that attacked the United States on 9-11 were Arabs.
Therefore, all Arabs are terrorists.” In essence, Coulter is advocating racial profiling. Which is an odd position for an attorney with a background in constitutional law to take. Innocent until proven guilty? Not if you look like you are an Arab. It was John Lehman, a member of the 9-11 Commission, that had brought attention to the policy that prohibits airlines from searching more than two Arabs at a time. To this, Coulter writes, “In a sane world, Lehman’s statement would have made headlines across the country…that it is official government policy to prohibit searching more than two Arabs per flight.”
African-Americans have dealt with this kind of injustice for years. And while Coulter thinks racial profiling is sound law enforcement policy, I have another word for it: racism. But that’s just me. And when you apply Coulter’s logic to other scenarios, the logic stops making sense. For instance, The FBI has profiled serial killers and what has emerged is that the majority of serial killers are white males. Does that mean the FBI should stop every white male in a particular city or region where a serial killer has struck? Of course not. That would be stupid.
So, even though she supports a racist method of law enforcement, it would not be fair for me to say Coulter was a racist. I don’t know Ann Coulter, so I can’t say she’s a racist. That would be wrong. Maybe we can find some answers in her columns!
Here’s a good one. September 25, 2002. Why We Hate Them. Coulter writes, Americans don't want to make Islamic fanatics love us. We want to make them die. There's nothing like horrendous physical pain to quell angry fanatics. So sorry they're angry – wait until they see American anger. Japanese kamikaze pilots hated us once too. A couple of well-aimed nuclear weapons, and now they are gentle little lambs. That got their attention.
No love lost there, eh Ann? Maybe we should emulate the policies of the Hitler-era German government. They didn’t like Jews very much, so they rounded them up and killed millions of them.
Conservatives do a lot of whining about how liberals are always quick to label conservatives as “racists” or “homophones” or “stupid.” These assessments, at least for me, are based on what I hear coming out of a conservative’s mouth, or what they write.
Actually, conservative hate-speak is very easy to pick up on. Take Sean Hannity. He likes to begin sentences with statements like “You liberals…” or he’ll say “You and your liberal friends…” The key is to take the word liberal and replace it with a minority. Give it a try the next time you hear Hannity, or some other right-winger, on television or read it in print. If you can stomach hearing Hannity. Maybe you’ll need to find someone less annoying.
Speaking of annoying, let’s get back to Coulter. In her Sept. 4, 2002 column, titled Murder for Fun and Prophet (get it? Prophet refers to the Prophet Muhammad. Hilarious!), at the end of the column, Coulter dismisses the Muslim faith as irrelevant. “Muhammad makes L. Ron Hubbard look like Jesus Christ. Most people think nothing of assuming every Scientologist is a crackpot. Why should Islam be subject to presumption of respect because it's a religion?”
That’s right, Ann! Over one billion people around the world are crackpots because they are Muslims. Idiots! As a comparison, there are only a few million members of the Church of Scientology, according to the Religious Tolerance web site.
And let’s not forget Ann’s most infamous column, from Sept. 12, 2001. At the end of that column, she says, “We should invade their countries, kill their leaders and convert them to Christianity. We weren't punctilious about locating and punishing only Hitler and his top officers. We carpet-bombed German cities; we killed civilians. That's war. And this is war.”
Call me crazy, but I get the impression that Arabs and/or Muslims are not Ann’s favorite people.
For instance, in an interview with the Guardian of London newspaper on May 17, 2003, Coulter said, “This is my idea…I think airlines ought to start advertising: 'We have the most civil rights lawsuits brought against us by Arabs.’” Oh, man, Ann, my sides are splitting! In fact, as a solution for Muslims to use air travel, Coulter offers helpfully, “They could use flying carpets!”
Flying carpets! Brilliant! Ann, you know, if the whole racist pundit thing ever comes to an end, you’ll have a career in stand-up comedy.
We know Ann hates liberals, and it’s pretty clear she hates Muslims. And, apparently, Scientologists. I don’t know what Ann likes. My guess will have to be, hearing her voice. Or Sean Hannity’s voice.
About the author: Scott C. Smith is a freelance writer from Beaverton, Oregon. Scott’s column, What’s In Scott’s Head, appears at several progressive web sites, including the Democratic Underground, The Smirking Chimp, Op Ed News, and Counter Bias. Scott also writes for his web site, at http://www.scottcsmith.net
About the Author
Scott C. Smith is a freelance writer from Beaverton, Oregon. Scott’s column, "What’s In Scott’s Head," appears at several progressive web sites, including the Democratic Underground, The Smirking Chimp, Op Ed News, and Counter Bias. Scott also writes for his web site, at http://www.scottcsmith.net
Asset Searching for Recovery Actions
by: Tom Lawson
Asset Searching for Recovery Actions
The Decision Maker’s Most Critical Tool – Part 1
You have the author’s permission to reprint this information only with the complete byline
attached.
As certified fraud examiners (CFE), we all know the nuts and bolts of our
respective areas of specialty, and hopefully, we are all growing professionally at
an astounding pace. Crime does, unfortunately, pay – just not for the criminal.
After conducting asset research for over 14 years for such demanding institutions
as FDIC, FSLIC, and RTC, as well as major hotels and casinos in the gaming
industry, property management firms, and many of the nation’s larger law firms,
one thing that has emerged is a distinct lack of information – not about the type
of items searched, but the depth and quality of other searches.
In cutting to the chase, the following is the result of the compilation of asset
search guidelines, and should serve to assist in setting at least a baseline
standard for developing a viable domestic asset search strategy.
Subject Identification
Prior to beginning the acquisition of information on any subject of an asset
search, the subject should be properly identified.
Studies have shown that as much as 30% of the American population uses
undisclosed aliases and/or "akas" to conduct and transact various levels of
personal and professional business. This statistic does not take into account the
existence of corporate, DBA and/or partnership entity names, which are created
to transact the various forms of business on behalf of the principals of said entity.
To properly identify a non-corporate subject, the following minimum
recommendations are made for non-law enforcement environments:
Obtain credit reports from the three major credit bureaus, per Fair Credit
Reporting Act (FCRA) requirements. However, make sure that obtaining the
reports is in compliance with permissible purposes as defined in Public Law 91-
508, Title VI (FCRA), to avoid tainting your pursuit should the matter ever be
litigated. Remember, in the context of this discussion, we are focused on asset
searches as recovery medium, and the basic assumption is that the asset search
has already been determined to be sanctionable. This could be determined, for
example, by a loan in default, a judgment that has been rendered, or a court
order obtained for the release of the credit information in cases that are not
clearly defined under the FCRA.
Remember this simple guideline: credit reports are legal post-judgment, for
purposes of collection, and/or where consent has been given somewhere in the
stream of the creditor/debtor relationship. In the case of a receivership institution
(i.e., where a director is being scrutinized for alleged conversion of assets),
consent may also have been given for a credit history during pre-employment
evaluation or as a policy-based condition of employment.
This is referred to as "extended consent," and constitutes valid use, especially in
matters where a criminal investigation is under way, and where the conversion of
assets is factually alleged as the result of a forensic audit or proven by
admission. Be careful, though, as "extended consent" from the employment
perspective is still a gray area under the law.
The following two items are available from credit bureaus and their sub-vendors
but have less coverage extended to them under the FCRA, yet the "FCRA
compliance attitude" should be used when accessing them:
· Obtain social security traces from the three major credit bureaus.
· Obtain address update/credit report header information from the three
major credit bureaus.
· Obtain voter registration information for the applicable jurisdiction
germane to the primary, or most recent, residence of the subject. Some
states have compiled voter data through private repositories, which should
be checked for movement.
Match the information obtained through the independent sources to the
information presented by the candidate in the form of the credit application with
the institution, and/or the information developed independently by the institution
in the initial credit qualification process.
Many other methods of identification exist, but the above represents the very
least that should be done.
The reason for obtaining the information from all three bureaus, instead of only
one, is to develop any alias and/or aka data, as well as current addresses (not
specified), and/or any additional addresses that may provide venue data. This
will assist the asset searcher in determining whether to advise the client to
proceed with asset discovery in additional areas unknown to the client at the time
the asset search was requested.
Address verifications are usually difficult without a physical inspection of the
address in question, including a visual identification of the subject entering and/or
leaving the address. Address information that is cross-referenced and verifiable
through the major credit bureau repositories is usually presented in an asset
search, and in most cases is very reliable.
To discover the current telephone number of the subject, methods available to
the fraud examiner include nationwide telephone directories, criss-cross
directories, directory assistance contact, and attempts at contact existing
telephone numbers known by the client. There are other methods of telephone
number development available. However, these methods should not be utilized
by a CFE in order to avoid tainting the legality of the pursuit, in the even that
litigation is ultimate undertaken.
Assets Determination
Assets determination usually constitutes an integration of certain liability data to
offset the assets "worth" in order to arrive at a net equity position. This is
especially true in identifying and analyzing real property assets. There are
multiple forms of asset determination, which are described as follows:
Real Property Ownership: A search should be conducted of the applicable
county jurisdiction. The exception is in California where a statewide assessor’s
index is available, usually through the "lien date" of the prior year. This
repository is made available through a private company, and is in no way
sanctioned by any public jurisdiction. For traditional searches throughout the rest
of the U.S., per jurisdiction research is conducted at the assessor’s office to
determine if the name exists on the assessor’s roll, and/or if the known property
(address) cross-verifies to the suspect owner.
A search of the applicable jurisdiction’s Recorder’s Grantee/Grantor index (or
general index as it may also be known) is then undertaken to determine if the
property is still vested to the subject, and if any open Deeds of Trust and other
liens exist which identify liabilities against the property. The search in the
recorder’s venue should also identify (in jurisdictions where this is possible) the
Documentary Transfer Tax Stamp amount, which should be divided by the
applicable factor. This yields a sales price for the property, which should then be
scrutinized by contacting a local realtor to verify the current market value. This
"thumbnail" market value determination would then be subtracted from the
outstanding Deeds of Trust (encumbrances) for a net equity value of the
property.
Additional research of real property ownership comes in the form of updating the
assessor’s rolls through the recorder’s offices to determine if the subject’s name
has come into title to additional parcels of property, subsequent to the "lien date"
of the assessor’s records, which is in many jurisdictions up to sixty to ninety days
old.
The searches in the recorder’s offices should also identify recent transfers of
ownership of an individual’s real property, wherein the ownership may have been
transferred to a family member, closely held corporation, or other entity. Based
upon the guidelines established by the client, the searches can be permutated to
include additional research on additional names developed during the study,
which the examiner may feel has a direct relationship to the subject of the report.
It is important to note that asset searches are usually requested on specific
names of individuals, and it is an industry standard of practice to conduct the
research on the specific subject name. Competent investigative agencies
contact the client in some way to disclose additional names discovered during
the searches.
Searches should also include information developed on real property assets
jointly held in the name of the husband and wife. This information is usually
indexed by virtue of the husband’s name, or the first name that appears on the
conveying deed.
It is important to understand that an asset search does not automatically research
property held in the name of a wife unless the asset search is specifically ordered
on the wife’s name. If so, the wife’s name would then be included as a primary
search name (parameter), and assets held in the wife’s name would then be
covered. Quite simply, an asset search on a husband should usually also reveal
information on spousal assets held jointly, but not necessarily include assets held
by the wife individually or as sole owner, or under different name styles such as
aliases or maiden names.
Vehicle Searches: Searches should be conducted of the applicable states
Department of Motor Vehicles to identify all vehicles owned under the name and
address given to the state repository for search purposes. Several states do not
provide this service, as the tax registration responsibility for vehicular ownership
rests with a county or parish jurisdiction. Where states will not provide this
information, the applicable jurisdiction or jurisdictions should be researched to
determine if vehicles are owned by the name given as primary search parameter.
It is also important to understand that most assets search requests are not only
based upon single name searches, but usually single jurisdiction searches as well.
Some examiners may feel justified in providing additional "over-the-county-line"
information in order to bolster the information developed without an additional
asset search. However, single county or parish jurisdictions should be expected
as an industry standard.
Analyze credit reports to determine if current (outstanding) and/or previous loans
may have existed, linking this type of asset to the subject. Many times vehicular,
vessel, and aircraft assets are not identified through standard search parameters,
but are identified if the subject may have the asset registered in a different
jurisdiction; if the asset may be registered under a different name; or if the subject
may be a guarantor on the loan.
Vessel Ownership: There are three possible forms of accessing vessel ownership
information. The first is on a state-by-state basis at the Departments of Motor
Vehicles. The second is at the county or parish level. The third is a search of the
U.S. Coast Guard’s Watercraft Index, a nationwide repository of registered vessels
over a certain length. Depending upon the location of the asset search to be
conducted, one or all of these methods should be utilized.
Aircraft Ownership: Other than by "intelligence" information which may have been
submitted to the institution at the outset of the credit qualification process, the only
method of developing aircraft registration information is to perform an FAA
Airman’s Search to determine if an FAA Pilot’s license has been issued, and/or if
an individual has an aircraft registered in his or her name within the Federal
Aviation Administration’s files. As with the vessel ownership search through the
U.S. Coast Guard Watercraft registration, there is only one national root repository
that makes this service available. The service is resold through other database
repositories, yet it is advised that the "root" repository be utilized in order to
minimize data transfer/loss from vendor to vendor.
Banking Information: Bank account searches may be the world’s "second-oldest
profession." There is no specific way to access bank account information, other
than by a multitude of artistic pursuits including the development of information
within a consumer’s credit history; director contact with a banking institution; the
use of sources in the U.S. Federal Reserve Clearinghouse System; or by sources
and contacts developed by the fraud examiner with local, state, or national banking
institutions.
This is truly the "art and science’ of an asset search, in that the ability to
successfully identify banks rests heavily with the fraud examiner’s prowess in this
arena.
The standard guidelines for bank account searches are "exact name basis only"
searches, with less emphasis placed on jurisdictional lines, since most bank
account searches are developed via intelligence leads. In many instances, an
asset search will refer "no record found" to a banking institution under an exact
subject name. The subject’s name may appear as a signatory on an alternate
account, possibly under the name of a disclosed or undisclosed entity, or as a
signatory on an account held under the name of another. Bank accounts will not
usually be disclosed in this fashion. Unauthorized information pertaining to a nonsearched
consumer could compromise that person’s privacy under federal privacy
laws, the FCRA and the CCPA, as well as many other statutes.
It is safe to say that most agencies are quick to obtain at least some banking
information. This should rest with the successful Write of Execution language,
constructed by counsel as served upon the institution’s regional administrative
and/or corporate offices (for examples send a request to
tomlawson@apscreen.com).
In Part 2 of this article, we’ll look at other financial and business information that
should be gathered during an asset search, liability-related data which impacts the
subject’s net worth as well as other information.
Thomas C. Lawson, CFE, CII is President and Founder of APSCREEN International, the world’s
leading full service Consumer Reporting Agency. Lawson is called "one of the real pros" as he
has helped to reshape laws including employment screening permissible credit reporting, asset
discovery and fraud examination. Tom is a Life Member of: ACFE, ASIS, SHRM, PIHRA,
PNRRA, PRRN, CII, WAD, WIN, FCAOC and OCEMA.
