Taking a loan and using securities

[munipandita]

Hi.

If i use an aircraft as a loan security, can i LEASE it?

I know i cannot sell, but, can i lease it, at least?

[calvinco61]

No, you can't sell OR lease it when it's being used as a security.

[munipandita]

damn.. 

[Sigma]

Sure you can.

I did it earlier in MT#2 with an F28 I had.  I didn't want it in my commonality so I leased it out and used it as a loan security to pay for planes I did want.  Worked for me on 2 ends that way.  Eventually, after 2-3 years of lease income and flipping it several times as a security, I sold it for more than I paid for it originally.

[munipandita]

Oh! God is Good! 

[GDK]

Sure you can.

I did it earlier in MT#2 with an F28 I had.  I didn't want it in my commonality so I leased it out and used it as a loan security to pay for planes I did want.  Worked for me on 2 ends that way.  Eventually, after 2-3 years of lease income and flipping it several times as a security, I sold it for more than I paid for it originally.

You leased it before make it as security or after? I cannot lease it after used it for security in ATB and I remember other peoples are facing that problem too. There is another thread about this.

[munipandita]

Damn it... =/

Had exactly this problem.. 

Well, at least i was able to buy another one, so i bought it.. SAMI, if i lease it before geting the loan, it will work?!

[Sigma]

Yes, I borrowed against it after the lease.  I know for a fact that works.  

Based on a thread a few weeks ago, the aircraft must also be IN POSSESSION of the lessor.  So you can't borrow against it for 2 weeks.

[Jps]

IMHO it should either be allowed to be used as security at any time (be it leased or in possession) or not at all. Currently it doesn't seem very realistic.

[Sigma]

IMHO it should either be allowed to be used as security at any time (be it leased or in possession) or not at all. Currently it doesn't seem very realistic.

Of course.  It's clearly a bug if it doesn't allow you to lease it after it's been borrowed against, but it does before.

[munipandita]

Well, i bought another one and i put it on the market first.. And i cannot use it as a security

Where is sami?

[Sami]

Of course.  It's clearly a bug if it doesn't allow you to lease it after it's been borrowed against, but it does before.

I believe this was checked some time ago and that was a technical restriction. So you can secure it only after it's been delivered to the other airline.

[munipandita]

Oh, ok.. so, please, anyone, lease my aircraft!!!

[GDK]

Then I can't get the loan if nobody is going to lease my plane at the market...

[Sigma]

Oh, ok.. so, please, anyone, lease my aircraft!!!

Well, just a hint here, but if you really want someone to lease it, selling it for a bit less than 25% over-value might help it move a little quicker.  That's a pretty hefty margin for a smaller plane where that's easily the difference between a profitable plane and a losing one.