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8800.3600 AIRCRAFT RENTAL OR LEASING.

Subpart 1.

Endorsement required.

Any person renting or leasing aircraft or offering to rent or lease aircraft for hire or compensation is deemed to be in the business of renting or leasing aircraft and must have an endorsement on his or her commercial operations license certifying his or her authority to engage in such activity.

Subp. 1a.

Exceptions.

No commercial operations license is required of:

A.

a person owning an aircraft and leasing or renting that aircraft to a party who holds a commercial operations license; or

B.

either party to an exclusive lease in excess of 30 days.

Subp. 2.

Records.

The holder of a commercial operations license with an aircraft rental or leasing endorsement shall keep and maintain a complete and adequate set of records to show the following: the name of the pilot renting or leasing an aircraft; the identification of the aircraft rented or leased; and the date, time, and duration of the flight for which the aircraft was rented or leased.

Subp. 3.

Qualifications of lessee.

The commercial operator shall determine before initially renting or leasing any aircraft that the lessee is properly licensed and rated to fly the type of aircraft to be rented or leased. When in the interest of safety, the operator determines that a flight check is necessary or desirable, the flight must be given the lessee by a person holding an effective commercial pilot, flight instructor, or airline transport pilot certificate. The commercial operator shall ensure that a designated person capable of determining an aircraft is properly serviced is present when an aircraft is checked out.

Subp. 4.

Insurance.

The minimum insurance coverage for each aircraft must be of the following types and amounts: $100,000 per passenger and $500,000 per occurrence for bodily injury and property damage.

Each commercial operator who rents or leases aircraft shall advise the renter pilot or lessee as to whether or not they are specifically covered under the commercial operator's insurance policy and the type and extent of coverage, if any. The commercial operator shall then obtain a signed statement of acknowledgment of this disclosure from the renter pilot or lessee. A current copy of the advisory form used for this disclosure must be submitted with the application for a commercial operations license or license renewal.

Subp. 5.

Commercial operations license.

The applicant must meet the requirements of parts 8800.3100 and 8800.3200.

Statutory Authority:

MS s 360.015; 360.018; 360.03; 360.09

History:

17 SR 1279; 30 SR 215

Published Electronically:

October 2, 2007

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569