Starting Nov. 5, 2024, the Federal Aviation Administration (FAA) Civil Aviation Registry will remove electronic access to Work in Process (WIP) documents as a result of FAA Order 1370.121B. The following notice was submitted to FAA Public Documents Room Permittees:
Effective November 5, 2024, the FAA Civil Aviation Registry will discontinue the daily index document CD service and remove electronic access to Work in Process (WIP). FAA Order 1370.121B, FAA Information Security and Privacy: Policy, prohibits the disclosure of personally identifiable information (PII). 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.
Data indexes of all received documents will continue to be available on the Registry’s website (Document Index Inquiry), which is updated each Federal working day at Midnight.
The new process aims to protect personally identifying information in the unprocessed documents by removing public access to documents before they are reviewed. Historically, closing agents were able to view these WIP files and understand what is being filed, by whom, and what impact it may have on closing.
Under this new process, closing agents will have no visibility until a document is processed, potentially 12 or more days from the time it is filed. Closing agents will be able to see whether there are WIP documents filed, but not the contents or type of filing. Documents that could impact the sale, such as filings by other lenders, claims of lien, bills of sale, etc., will not be visible until they are fully processed by the FAA.
Key impacts of this new process include:
-
Delayed Access to Filed Documents: Lenders may be unable to access recently filed documents, including those related to aircraft titles and lien interests, for up to 12 days. This delay could hinder due diligence processes and impact the ability to accurately assess status of the title.
-
Transaction Uncertainty: In particular, delayed access to cancellation notices could create uncertainty regarding the import process. New documents filed could also contain information on parties involved in the transaction that you may need to know before moving forward.
-
Potential for Delayed Closings: The inability to access timely and accurate information may lead to delays in obtaining necessary legal opinions or title searches, or stalling closing transactions. This could increase transaction costs and create financial risks for lenders.
With this new process, it will be more important than ever to remain flexible should any last-minute filings appear on the index prior to closing.
Many thanks to Scott McCreary with McAfee & Taft for his contribution to this article.
This article was originally published by NAFA on November 12, 2024.