Cover assets

Only loan claims secured by register liens under section 1 of the Act on Rights in Aircraft, or by foreign aircraft mortgages, may be used for the cover of aircraft Pfandbriefe, insofar as they satisfy the requirements of sections 26b to 26d. In the case of a partial use of a loan claim for cover, the Pfandbrief bank must document the matter in a comprehensible manner. A critical concentration of risk must be avoided when taking assets into cover. Such a concentration is as a rule to be assumed where a disproportionately high share of the encumbered aircraft is operated by the same company or belongs to a single aircraft type, and this jeopardises the timely realisation of the cover assets.