Truth-in-leasing clause requirement in leases and conditional sales contracts

When you lease or finance a large civil aircraft registered in the U.S., the written agreement must include a "truth-in-leasing clause" in large print just before the signature lines. This clause must identify how the aircraft was maintained in the past 12 months, certify compliance with maintenance requirements, name the person responsible for operational control, and acknowledge their regulatory responsibilities.

Within 24 hours of signing, you must mail a copy to the FAA's Aircraft Registration Branch in Oklahoma City and carry a copy in the aircraft. You must also notify your local Flight Standards office at least 48 hours before the first flight under the lease, providing departure location, time, and aircraft registration number.

Exceptions apply when leasing to/from airlines, certain commercial operators, or foreign air carriers, and for brand-new unregistered aircraft under conditional sale. This regulation ensures the FAA knows who's responsible for operating leased aircraft and that maintenance standards are being met.

*This is a plain-English summary for study only. The official 14 CFR text on this page is controlling — always read the current regulation and consult a CFI.*