A mortgaged aircraft can be used as collateral for a debt. The mortgage may be applied for by the owner of the aircraft or a creditor. If the mortgage application is submitted by the creditor, mortgaging the aircraft requires the written consent of its owner. Mortgage decisions are subject to a fee.
A confirmed aircraft mortgage remains valid for ten years from the date of confirmation unless it is separately discharged. A valid aircraft mortgage can also be renewed, with the mortgage remaining valid for ten years from the date of renewal. The debt instruments used for aircraft mortgages are most commonly bearer bonds.
Traficom will record a certification of the confirmation, renewal or cancellation/discharge of an aircraft mortgage in both the debt instrument and the Transport Register.