(a) The registration of an aircraft is invalid if, at the time it is made—

(1) The aircraft is registered in a foreign country;

(2) The applicant is not the owner;

(3) The applicant is not qualified to submit an application under this part; or

(4) The interest of the applicant in the aircraft was created by a transaction that was not entered into in good faith, but rather was made to avoid (with or without the owner's knowledge) compliance with 49 U.S.C. 44101-44104.

(b) If the registration of an aircraft is invalid under paragraph (a) of this section, the holder of the invalid Certificate of Aircraft Registration, AC Form 8050-3, must return it as soon as possible to the Registry.

[Doc. No. 7190, 31 FR 4495, Mar. 17, 1966; 31 FR 5483, Apr. 7, 1966, as amended by Amdt. 47-20, 44 FR 61940, Oct. 29, 1979; Amdt. 47-27, 70 FR 245, Jan. 3, 2005; Amdt. 47-29, 75 FR 41982, July 20, 2010]