A move to block access to unprocessed documents filed at the Aircraft Registry could delay transactions and make them less transparent, NAFA said.
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The National Aircraft Finance Association (NAFA) is warning that a recent FAA security and privacy order could result in delays and a lack of transparency surrounding aircraft transactions and registration. FAA Order 1370.121B, “FAA Information Security and Privacy: Policy” essentially bars the disclosure of personally identifiable information (PII).
As such, the FAA’s Civil Aviation Registry has removed electronic access to “Work in Process” (WIP) documents, NAFA said, pointing to an FAA statement that “After consultation with the FAA Privacy Office, it has been determined that, because documents in WIP have not been reviewed for PII or accepted into the aircraft record, the Registry can no longer provide access to these documents.”
The move is designed to protect disclosure of personal information in unprocessed documents before they are reviewed, NAFA said. But historically, the association added, closing agents could view the WIP documents to ascertain what is being filed, by whom, and the impact it could have on closing.
With the changes, closing agents will not have visibility into the documents until they are processed. NAFA estimated this could take a dozen or more days from the time a document is filed. Indexes of all filed documents remain available and are updated each working day. So closing agents will know whether documents are filed, just not the contents until they are processed.
NAFA explained that this includes filings by other lenders, claims of liens, bills of sale, and other documents that could affect a transaction. The result could hinder due diligence while documents are processed, further delay and add complexity to the import process, and stall closings, increasing transaction costs and introducing risk, according to the association, which cited expertise from Scott McCreary with McAfee & Taft.
NAFA: FAA Privacy Safeguards Could Delay A/C Transactions
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The National Aircraft Finance Association (NAFA) is warning that a recent FAA security and privacy order could result in delays and a lack of transparency surrounding aircraft transactions and registration. FAA Order 1370.121B, “FAA Information Security and Privacy: Policy” essentially bars the disclosure of personally identifiable information (PII).
As such, the FAA’s Civil Aviation Registry has removed electronic access to work-in-process (WIP) documents, NAFA said, pointing to this FAA statement: “After consultation with the FAA Privacy Office, it has been determined that, because documents in WIP have not been reviewed for PII or accepted into the aircraft record, the Registry can no longer provide access to these documents.”
The move is designed to protect disclosure of personal information in unprocessed documents before they are reviewed, NAFA said. But historically, the association added, closing agents could view the WIP documents to ascertain what is being filed, by whom, and the impact it could have on closing.
With these changes, closing agents will not have visibility into the documents until they are processed. NAFA estimated this could take a dozen or more days from the time a document is filed. Indexes of all filed documents remain available and are updated each working day, so closing agents will know whether documents are filed but not the contents until they are processed.