- Draft Convention on International Interests in Mobile Equipment 2001
- CHAPTER II - CONSTITUTION OF AN INTERNATIONAL INTEREST; CONTRACTS OF SALE
- CHAPTER III - DEFAULT REMEDIES
- CHAPTER IV - THE INTERNATIONAL REGISTRATION SYSTEM
- CHAPTER V - MODALITIES OF REGISTRATION
- CHAPTER VI - PRIVILEGES AND IMMUNITIES OF THE SUPERVISORY AUTHORITY AND THE REGISTRAR
- CHAPTER VII - LIABILITY OF THE REGISTRAR
- CHAPTER VIII - EFFECTS OF AN INTERNATIONAL INTEREST AS AGAINST THIRD PARTIES
- CHAPTER IX - ASSIGNMENTS OF INTERNATIONAL INTERESTS AND RIGHTS OF SUBROGATION
- CHAPTER X - NON-CONSENSUAL RIGHTS OR INTERESTS
- CHAPTER XI - JURISDICTION
- CHAPTER XII - RELATIONSHIP WITH OTHER CONVENTIONS
- CHAPTER XIII - FINAL PROVISIONS
- All Pages
2001 Toronto ON
See also the Uniform International Interests in Mobile Equipment Act
DRAFT CONVENTION ON INTERNATIONAL INTERESTS IN AIRCRAFT EQUIPMENT
THE STATES PARTIES TO THIS CONVENTION,
AWARE of the need to acquire and use aircraft equipment of high value or particular economic significance and to facilitate the financing of the acquisition and use of such equipment in an efficient manner,
RECOGNISING the advantages of asset-based financing and leasing for this purpose and desiring to facilitate these types of transaction by establishing clear rules to govern them,
MINDFUL of the need to ensure that interests in such equipment are recognised and protected universally,
DESIRING to provide broad economic benefits for all interested parties,
BELIEVING that such rules must reflect the principles underlying asset-based financing and leasing and promote the autonomy of the parties necessary in these transactions,
CONSCIOUS of the need to establish a legal framework for international interests in such equipment and for that purpose to create an international registration system for their protection,
HAVE AGREED upon the following provisions:
SPHERE OF APPLICATION AND GENERAL PROVISIONS
In this Convention, except where the context otherwise requires, the following words are employed with the meanings set out below:
(a) "agreement" means a security agreement, a title reservation agreement or a leasing agreement;
(b) "aircraft" means aircraft as defined for the purposes of the Chicago Convention which are either airframes with aircraft engines installed thereon or helicopters;
(c) "aircraft engines" means aircraft engines (other than those used in military, customs or police services) powered by jet propulsion or turbine or piston technology and:
(i) in the case of jet propulsion aircraft engines, have at least 1750 lb of thrust or its equivalent; and
(ii) in the case of turbine-powered or piston-powered aircraft engines, have at least 550 rated take-off shaft horsepower or its equivalent,
together with all modules and other installed, incorporated or attached accessories, parts and equipment and all data, manuals and records relating thereto;
(d) "aircraft objects" means airframes, aircraft engines and helicopters;
(e) "aircraft register" means a register maintained by a state or a common mark registering authority for the purposes of the Chicago Convention;
(f) "airframes" means airframes (other than those used in military, customs and police services) that, when appropriate aircraft engines are installed thereon, are type certified by the competent aviation authority to transport:
(i) at least eight (8) persons including crew; or
(ii) goods in excess of 2750 kilograms,
together with all installed, incorporated or attached accessories, parts and equipment (other than aircraft engines), and all data, manuals and records relating thereto;
(g) "assignment" means a contract which, whether by way of security or otherwise, confers on the assignee rights in the international interest;
(h) "associated rights" means all rights to payment or other performance by a debtor under an agreement which are secured by or associated with the aircraft object;
(i) "authorised party" means the party referred to in Article 24(2);
(j) "Chicago Convention" means the Convention on International Civil Aviation, opened for signature in Chicago on 7 December 1944, as amended and its annexes;
(k) "commencement of the insolvency proceedings" means the time at which the insolvency proceedings are deemed to commence under the applicable insolvency law;
(l) "common mark registering authority" means the authority maintaining a register in accordance with Article 77 of the Chicago Convention as implemented by the Resolution adopted on 14 December 1967 by the Council of the International Civil Aviation Organization on nationality and registration of aircraft operated by international operating agencies;
(m) "conditional buyer" means a buyer under a title reservation agreement;
(n) "conditional seller" means a seller under a title reservation agreement;
(o) "contract of sale" means a contract for the sale of an aircraft object by a seller to a buyer which is not an agreement as defined in (a) above;
(p) "court" means a court of law or an administrative or arbitral tribunal established by a Contracting State;
(q) "creditor" means a chargee under a security agreement, a conditional seller under a title reservation agreement or a lessor under a leasing agreement;
(r) "debtor" means a chargor under a security agreement, a conditional buyer under a title reservation agreement, a lessee under a leasing agreement or a person whose interest in an aircraft object is burdened by a registrable non-consensual right or interest;
(s) "de-registration of the aircraft" means deletion or removal of the registration of the aircraft from its aircraft register in accordance with the Chicago Convention;
(t) "guarantee contract" means a contract entered into by a person as guarantor;
(u) "guarantor" means a person who, for the purpose of assuring performance of any obligations in favour of a creditor secured by a security agreement or under an agreement, gives or issues a suretyship or demand guarantee or a standby letter of credit or any other form of credit insurance;
(v) "helicopters" means heavier-than-air machines (other than those used in military, customs or police services) supported in flight chiefly by the reactions of the air on one or more power-driven rotors on substantially vertical axes and which are type certified by the competent aviation authority to transport:
(i) at least five (5) persons including crew; or
(ii) goods in excess of 450 kilograms,
together with all installed, incorporated or attached accessories, parts and equipment (including rotors), and all data, manuals and records relating thereto;
(w) "insolvency administrator" means a person authorised to administer the reorganisation or liquidation, including one authorised on an interim basis, and includes a debtor in possession if permitted by the applicable insolvency law;
(x) "insolvency proceedings" means collective judicial or administrative proceedings, including interim proceedings, in which the assets and affairs of the debtor are subject to control or supervision by a court for the purposes of reorganisation or liquidation;
(y) "insolvency-related event" means:
(i) the commencement of the insolvency proceedings; or
(ii) the declared intention to suspend or actual suspension of payments by the debtor where the creditor's right to institute insolvency proceedings against the debtor or to exercise remedies under the Convention is prevented or suspended by law or State action;
(z) "interested persons" means:
(i) the debtor;
(ii) any person who, for the purpose of assuring performance of any of the obligations in favour of the creditor, gives or issues a suretyship or demand guarantee or a standby letter of credit or any other form of credit insurance;
(iii) any other person having rights in or over the aircraft object;
(aa) "internal transaction" means a transaction of a type listed in Article 2(2)(a)-(c) where the centre of the main interests of all parties to such transaction is situated, and the relevant aircraft object is located (as specified in the Convention), in the same Contracting State at the time of the conclusion of the transaction;
(bb) "international interest" means an interest to which Article 2 applies;
(cc) "International Registry" means the international registration facilities established for the purposes of this Convention ;
(dd) "leasing agreement" means an agreement by which a lessor grants a right to possession or control of an aircraft object (with or without an option to purchase) to a lessee in return for a rental or other payment;
(ee) "national interest" means an interest in an aircraft object created by an internal transaction;
(ff) "non-consensual right or interest" means a right or interest conferred by law to secure the performance of an obligation, including an obligation to a State or State entity;
(gg) "notice of a national interest" means a notice that a national interest has been registered in a public registry in the Contracting State making a declaration under Article 64(1);
(hh) "pre-existing right or interest" means a right or interest of any kind in an aircraft object created or arising under the law of a Contracting State before the entry into force of this Convention in respect of that State, including a right or interest of a category covered by a declaration pursuant to Article 52 and to the extent of that declaration;
(ii) "primary insolvency jurisdiction" means the Contracting State in which the centre of the debtor's main interests is situated, which for this purpose shall be deemed to be the place of the debtor's statutory seat or, if there is none, the place where the debtor is incorporated or formed, unless proved otherwise;
(jj) "proceeds" means money or non-money proceeds of an aircraft object arising from the total or partial loss or physical destruction of the aircraft object or its total or partial confiscation, condemnation or requisition;
(kk) "prospective assignment" means an assignment that is intended to be made in the future, upon the occurrence of a stated event, whether or not the occurrence of the event is certain;
(ll) "prospective international interest" means an interest that is intended to be created or provided for in an aircraft object as an international interest in the future, upon the occurrence of a stated event (which may include the debtor's acquisition of an interest in the aircraft object), whether or not the occurrence of the event is certain;
(mm) "prospective sale" means a sale which is intended to be made in the future, upon the occurrence of a stated event, whether or not the occurrence of the event is certain;
(nn) "registered" means registered in the International Registry pursuant to Chapter V;
(oo) "registered interest" means an international interest, a registrable non-consensual right or interest or a national interest specified in a notice of a national interest registered pursuant to Chapter V;
(pp) "registrable non-consensual right or interest" means a non-consensual right or interest registrable pursuant to a declaration deposited under Article 51;
(qq) "Registrar" means, the person or body designated or appointed under Articles 26(2)(b) and 27(1);
(rr) "registry authority" means the national authority or the common mark registering authority, maintaining an aircraft register in a Contracting State and responsible for the registration and de-registration of an aircraft in accordance with the Chicago Convention;
(ss) "regulations" means regulations made or approved, by the Supervisory Authority;
(tt) "sale" means a transfer of ownership of an aircraft object pursuant to a contract of sale;
(uu) "secured obligation" means an obligation secured by a security interest;
(vv) "security agreement" means an agreement by which a chargor grants or agrees to grant to a chargee an interest (including an ownership interest) in or over an aircraft object to secure the performance of any existing or future obligation of the chargor or a third person;
(ww) "security interest" means an interest created by a security agreement;
(xx) "State of registry" means, in respect of an aircraft, the State on the national register of which an aircraft is entered or the State of location of the common mark registering authority maintaining the aircraft register;
(yy) "Supervisory Authority" means the Supervisory Authority referred to in Article 26(1);
(zz) "title reservation agreement" means an agreement for the sale of an aircraft object on terms that ownership does not pass until fulfilment of the condition or conditions stated in the agreement;
(aaa) "unregistered interest" means a consensual interest or non-consensual right or interest (other than an interest to which Article 52 applies) which has not been registered, whether or not it is registrable under this Convention; and
(bbb) "writing" means a record of information (including information communicated by teletransmission) which is in tangible or other form and is capable of being reproduced in tangible form on a subsequent occasion and which indicates by reasonable means a person's approval of the record. (1)
The international interest
1. - This Convention provides for the constitution and effects of an international interest in aircraft objects and associated rights.
2. - For the purposes of this Convention, an international interest in aircraft objects is an interest, constituted under Article 10, in airframes, aircraft engines or helicopters:
(a) granted by the chargor under a security agreement;
(b) vested in a person who is the conditional seller under a title reservation agreement; or
(c) vested in a person who is the lessor under a leasing agreement.
An interest falling within sub-paragraph (a) does not also fall within sub-paragraph (b) or (c).
3. - This Convention does not determine whether an interest to which paragraph 2 applies falls within sub-paragraph (a), (b) or (c) of that paragraph.
4. - An international interest in an aircraft object extends to proceeds of that aircraft object.
Sphere of application
1. - This Convention applies when, at the time of the conclusion of the agreement creating or providing for the international interest, the debtor is situated in a Contracting State.
2. - The fact that the creditor is situated in a non-Contracting State does not affect the applicability of this Convention.
3. - Without prejudice to paragraph 1 of this article, the Convention shall also apply if an aircraft is registered in an aircraft register of a Contracting State. In such circumstances the application of the Convention shall be from the earlier of:
a) the date the aircraft is so registered; and
b) the date of an agreement providing that the aircraft shall be so registered.(2)
4. - For the purposes of the definition of "internal transaction" in Article 1:
(a) an airframe is located in the State of registry of the aircraft of which it is a part;
(b) an aircraft engine is located in the State of registry of the aircraft on which it is installed or, if it is not installed on an aircraft, where it is physically located; and
(c) a helicopter is located in its State of registry,
at the time of the conclusion of the agreement creating or providing for the interest.
Where debtor is situated
1. - For the purposes of this Convention, the debtor is situated in any Contracting State:
(a) under the law of which it is incorporated or formed;
(b) where it has its registered office or statutory seat;
(c) where it has its centre of administration; or
(d) where it has its place of business.
2. - A reference in this Convention to the debtor's place of business shall, if it has more than one place of business, mean its principal place of business or, if it has no place of business, its habitual residence.
Interpretation and applicable law
1. - In the interpretation of this Convention, regard is to be had to its purposes as set forth in the preamble, to its international character and to the need to promote uniformity and predictability in its application.
2. - Questions concerning matters governed by this Convention which are not expressly settled in it are to be settled in conformity with the general principles on which it is based or, in the absence of such principles, in conformity with the applicable law.
3. - References to the applicable law are to the domestic rules of the law applicable by virtue of the rules of private international law of the forum State.
4. - Where a State comprises several territorial units, each of which has its own rules of law in respect of the matter to be decided, and where there is no indication of the relevant territorial unit, the law of that State decides which is the territorial unit whose rules shall govern. In the absence of any such rule, the law of the territorial unit with which the case is most closely connected shall apply.
Application to sale and prospective sale
The following provisions of this Convention apply in relation to a sale and shall do so as if references to an international interest, a prospective international interest, the debtor and the creditor were references to a contract of sale, a prospective sale, the seller and the buyer, respectively:
Articles 3 and 4;
Article 32(1) (as regards registration of a contract of sale or a prospective sale);
Article 37(2) (as regards a prospective sale); and
In addition, the general provisions of Article 1, Article 5, Chapters IV to VII, Article 41 (other than Article 41(3), Chapter X, Chapter XI (other than Article 54), Chapter XII and Chapter XIII (other than Article 75) shall apply to sales and prospective sales.(3)
A person may enter into an agreement or a sale, and register an international interest in, or a sale of, an aircraft object, in an agency, trust or other representative capacity. In such case, that person is entitled to assert rights and interests under this Convention.
Description of aircraft objects
A description of an aircraft object that contains its manufacturer's serial number, the name of the manufacturer and its model designation is necessary and sufficient to identify the aircraft object for the purposes of Articles 10(c), 11(1)(c) and 43(2)(b) of this Convention.
Choice of law
1. - The parties to an agreement, or a contract of sale, or a related guarantee contract or subordination agreement may agree on the law which is to govern their contractual rights and obligations under the Convention, wholly or in part.
2. - Unless otherwise agreed, the reference in the preceding paragraph to the law chosen by the parties is to the domestic rules of law of the designated State or, where that State comprises several territorial units, to the domestic law of the designated territorial unit.
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