Lending limit

(1) Lending is limited to aircraft within the meaning of section 1(2), first sentence, no. 1 of the Aviation Act that are entered in a public register.
(2) Lending may not exceed the first 60 per cent of the value of the aircraft (aircraft lending value) determined by the Pfandbrief bank on the basis of a valuation under section 26d. It must be ensured, by suitable measures, that the register lien or foreign aircraft mortgage also extends to the engines. Re-registrations of aircraft, and the resulting effects on the register lien or foreign aircraft mortgage, must be monitored; the ongoing satisfaction of the requirements of subsection (4) must be ensured by suitable measures. Lending may be made only by way of amortising loans, the repayment of the loan as a rule being distributed evenly over the individual years; the agreement of reducing repayment instalments is not harmful. Where it is agreed for a loan that it is to be repaid by the end of the loan term not entirely by instalments under the fourth sentence but also by a final instalment to be made at the end of the loan term, this is not deemed a case of uneven repayment where the final instalment does not exceed the amount that could be repaid, applying the uniform repayment agreed for the loan, by the end of the aircraft's 20th year of life. BaFin may, in individual cases, permit further exceptions from the provisions of the first and fourth sentences, where the particular nature of the aircraft to be lent against, the economic circumstances of the borrower, or additional security, justify this.
(3) Lending may extend at most to the end of the aircraft's 20th year of life, unless a shorter useful life is to be expected. BaFin may, in addition, under the conditions of subsection (2), sixth sentence, permit further exceptions. A deferral granted to the borrower that would have the effect that the permissible maximum lending period is exceeded is permitted only with the consent of the trustee.
(4) Lending against aircraft registered abroad is permitted where, under the law of the state in whose register the aircraft is entered, 1. an in rem right can be created in aircraft that is entered in a public register, 2. the in rem right grants the creditor security comparable to a register lien under German law, in particular the right to seek satisfaction from the aircraft for the secured loan claim, and 3. the pursuit of claims for creditors belonging to another state is not materially more difficult than for the state's own nationals. The total amount of loans under the first sentence outside the Member States of the European Union, for which it is not ensured that the priority right of the aircraft Pfandbrief creditors under section 30(1) extends to the Pfandbrief bank's claims from those loans, may not exceed 20 per cent of the total amount of claims for which the priority right is ensured. Where the law of the state in whose register the aircraft is entered provides that the in rem right arises without entry in a public register, but can be entered in such a register to secure the creditor's rights as against third parties, lending is permitted only on condition that the Pfandbrief bank without delay brings about the entry in the public register. Lending is as a rule permitted only in first rank. Subsection (2), sixth sentence applies accordingly.
(5) The registered cover assets also extend to all claims of which the Pfandbrief bank is the holder and that are directed at the economic substance of the aircraft, in particular claims to which the register lien would extend under sections 31 and 32 of the Act on Rights in Aircraft, or the foreign aircraft mortgage, as well as claims for rent and lease, claims to the transfer of the aircraft, and claims to the payment of the proceeds of a realisation. Section 12(3), second sentence applies accordingly.