The Cape Town Convention on International Interests in Mobile Equipment will come into effect in Guernsey from 1 November 2015 dolor.
The Cape Town Convention on International Interests in Mobile Equipment will come into effect in Guernsey from 1 November 2015, following ratification by the UK on 27 July 2015 and extension to Guernsey. The Convention and Protocol aim to standardise transactions involving aviation related assets, create international standards for registration of ownership and security interests, and provide legal remedies for default in financing agreements. With an increasing number of new transactions benefiting from the application of the Convention and Protocol, it is anticipated that the 2-REG will attract additional aircraft registrations.
Application of the Convention and Protocol to Guernsey demonstrates the continued movement of the global aviation market towards a recognised set of rules, rights and protections designed to reduce uncertainty and risk levels for aircraft lenders and lessors. With the predicted further industry growth of aircraft financing and leasing, the need for transparency and certainty given the cross border nature of transactions is becoming increasingly significant. The Convention and Protocol aim to facilitate these aspects by standardising transactions involving moveable property (”aircraft objects”) by the creation of the International Registry for registration of “international interests” which are recognised by “Contracting States”, as well as by providing default remedies to a creditor.
For more information on the practicalities and details of the application of the Convention and Protocol, please seek independent legal advice.