Regulation Text
(a) Except as provided in paragraph (b) of this section, the parties to a lease or contract of conditional sale involving a U.S.-registered large civil aircraft and entered into after January 2, 1973, shall execute a written lease or contract and include therein a written truth-in-leasing clause as a concluding paragraph in large print, immediately preceding the space for the signature of the parties, which contains the following with respect to each such aircraft:
(1) Identification of the Federal Aviation Regulations under which the aircraft has been maintained and inspected during the 12 months preceding the execution of the lease or contract of conditional sale, and certification by the parties thereto regarding the aircraft's status of compliance with applicable maintenance and inspection requirements in this part for the operation to be conducted under the lease or contract of conditional sale.
(2) The name and address (printed or typed) and the signature of the person responsible for operational control of the aircraft under the lease or contract of conditional sale, and certification that each person understands that person's responsibilities for compliance with applicable Federal Aviation Regulations.
(3) A statement that an explanation of factors bearing on operational control and pertinent Federal Aviation Regulations can be obtained from the responsible Flight Standards office.
(b) The requirements of paragraph (a) of this section do not apply—
(1) To a lease or contract of conditional sale when—
(i) The party to whom the aircraft is furnished is a foreign air carrier or certificate holder under part 121, 125, 135, or 141 of this chapter, or
(ii) The party furnishing the aircraft is a foreign air carrier or a person operating under part 121, 125, and 141 of this chapter, or a person operating under part 135 of this chapter having authority to engage in on-demand operations with large aircraft.
(2) To a contract of conditional sale, when the aircraft involved has not been registered anywhere prior to the execution of the contract, except as a new aircraft under a dealer's aircraft registration certificate issued in accordance with § 47.61 of this chapter.
(c) No person may operate a large civil aircraft of U.S. registry that is subject to a lease or contract of conditional sale to which paragraph (a) of this section applies, unless—
(1) The lessee or conditional buyer, or the registered owner if the lessee is not a citizen of the United States, has mailed a copy of the lease or contract that complies with the requirements of paragraph (a) of this section, within 24 hours of its execution, to the Aircraft Registration Branch, Attn: Technical Section, P.O. Box 25724, Oklahoma City, OK 73125;
(2) A copy of the lease or contract that complies with the requirements of paragraph (a) of this section is carried in the aircraft. The copy of the lease or contract shall be made available for review upon request by the Administrator, and
(3) The lessee or conditional buyer, or the registered owner if the lessee is not a citizen of the United States, has notified by telephone or in person the responsible Flight Standards office. Unless otherwise authorized by that office, the notification shall be given at least 48 hours before takeoff in the case of the first flight of that aircraft under that lease or contract and inform the FAA of—
(i) The location of the airport of departure;
(ii) The departure time; and
(iii) The registration number of the aircraft involved.
(d) The copy of the lease or contract furnished to the FAA under paragraph (c) of this section is commercial or financial information obtained from a person. It is, therefore, privileged and confidential and will not be made available by the FAA for public inspection or copying under 5 U.S.C. 552(b)(4) unless recorded with the FAA under part 49 of this chapter.
(e) For the purpose of this section, a lease means any agreement by a person to furnish an aircraft to another person for compensation or hire, whether with or without flight crewmembers, other than an agreement for the sale of an aircraft and a contract of conditional sale under section 101 of the Federal Aviation Act of 1958. The person furnishing the aircraft is referred to as the lessor, and the person to whom it is furnished the lessee.
(Approved by the Office of Management and Budget under control number 2120-0005)[Docket 18334, 54 FR 34292, Aug. 18, 1989, as amended by Amdt. 91-212, 54 FR 39293, Sept. 25, 1989; Amdt. 91-253, 62 FR 13253, Mar. 19, 1997; Amdt. 91-267, 66 FR 21066, Apr. 27, 2001; Docket FAA-2018-0119, Amdt. 91-350, 83 FR 9171, Mar. 5, 2018]
Research Notes
Section 91.23 imposes a truth-in-leasing clause requirement on leases and conditional sales contracts for large civil aircraft of U.S. registry. The rule's purpose is regulatory transparency — it forces the parties to a lease to identify, in writing, who is operationally responsible for the aircraft under FAA rules.
Aircraft scope: The rule applies to "large civil aircraft of U.S. registry," which the FAA defines as those over 12,500 pounds maximum certificated takeoff weight. Light general aviation aircraft leases are not subject to § 91.23.
What the clause must say: Paragraph (a)(1)-(3) requires the lease or conditional sales contract to state: (1) the identity of the party responsible for operational control of the aircraft; (2) certification by that party that the aircraft is being operated under Part 91 (not Part 121/135/etc.); (3) the date and place of the lease execution; and (4) the parties' acknowledgment that they understand the federal aviation regulations applicable to the operation.
Why operational control matters: The party with operational control is the party responsible for compliance with the operating rules — maintenance, crew currency, weather decisions, fuel, the works. In a wet lease (lessor provides aircraft and crew) the operational control typically stays with the lessor; in a dry lease (aircraft only) it moves to the lessee. The FAA uses § 91.23 to draw clear lines in transactions that might otherwise resemble disguised Part 135 charter (the "flight department company" problem).
Filing and on-board requirements (paragraph c): A copy of the lease or contract must be carried on the aircraft, and a copy must be sent to the FAA Aircraft Registration Branch within 24 hours of execution. The pilot in command of a leased aircraft must be able to produce the lease on demand.
The illegal charter trap: § 91.23 is one of several rules (with § 119.1, § 135.1) that the FAA uses to detect and enforce against illegal Part 91 "charter" operations dressed up as dry leases. Where the lessor controls crew, schedule, maintenance, and routing, the FAA may find that operational control never actually transferred to the lessee — making the operation an unauthorized Part 135.
Reference: FAA Flight Standards on Operational Control; AC 91-37B (Truth in Leasing); FAA InFO 21002 on illegal charter detection.
Amendment History
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