Draft Convention on International Interests in Mobile Equipment 2001

CHAPTER XIII - FINAL PROVISIONS

Article 62

Adoption of Convention

1. - This Convention is open for signature at the concluding meeting of the Diplomatic Conference for its adoption and will remain open for signature by all Contracting States at [....] until [....].

2. - This Convention is subject to ratification, acceptance or approval of Contracting States which have signed it.

3. - This Convention is open for accession by all States which are not signatory States as from the date it is open for signature.

4. - Ratification, acceptance, approval or accession is effected by the deposit of a formal instrument to that effect with the depositary.

Article 63

Entry into force

1. - This Convention enters into force on the first day of the month following the expiration of [three] months after the date of deposit of the [third/fifth] instrument of ratification, acceptance, approval or accession.

2. - For each Contracting State that ratifies, accepts, approves or accedes to this Convention after the deposit of the [third/fifth] instrument of ratification, acceptance, approval or accession, this Convention enters into force in respect of that Contracting State on the first day of the month following the expiration of [three] months after the date of the deposit of its instrument of ratification, acceptance, approval or accession.

Article 64

Internal transactions

1. - A Contracting State may declare at the time of ratification, acceptance, approval or accession that this Convention shall not apply to a transaction which is an internal transaction in relation to that State.

2. - Notwithstanding the preceding paragraph, the provisions of Articles 12(2) and 13(1), Chapter V, Article 41, and any provisions of this Convention relating to registered interests shall apply to an internal transaction.

Article 65

Territorial units

1. - If a Contracting State has two or more territorial units in which different systems of law are applicable in relation to the matters dealt with in this Convention, it may, at the time of ratification, acceptance, approval or accession, declare that this Convention is to extend to all its territorial units or only to one or more of them and may substitute its declaration by another declaration at any time.

2. - These declarations are to be notified to the depositary and are to state expressly the territorial units to which this Convention extends.

3. - If a Contracting State makes no declaration under paragraph 1, this Convention is to extend to all territorial units of that Contracting State.

Article 66

Determination of courts

A Contracting State may declare at the time of ratification, acceptance, approval or accession the relevant "court" or "courts" for the purposes of Article 1 and Chapter XI of this Convention.

Article 67

Declarations regarding remedies

1. - A Contracting State may declare at the time of signature, ratification, acceptance, approval or accession that while the charged aircraft object is situated within, or controlled from its territory the chargee shall not grant a lease of the aircraft object in that territory.

2. - A Contracting State at the time of signature, ratification, acceptance, approval or accession shall declare whether or not any remedy available to the creditor under any provision of this Convention which is not there expressed to require application to the court may be exercised only with leave of the court.

Article 68

Declarations relating to certain provisions

1. - A Contracting State, at the time of ratification, acceptance, approval, or accession may declare that it will apply any one or more of Articles 9, 23 and 24 of this Convention.

2. - A Contracting State may declare, at the time of ratification, acceptance, approval, or accession, that it will/will not apply Article 19 of this Convention wholly or in part. If it so declares with respect to Article 19(2), it shall specify the time-period required thereby.

3. - A Contracting State may declare, at the time of ratification, acceptance, approval, or accession, that it will apply the entirety of Alternative A, or the entirety of Alternative B of Article 22 and, if so, shall specify the types of insolvency proceeding, if any, to which it will apply Alternative A and the types of insolvency proceeding, if any, to which it will apply Alternative B. A Contracting State making a declaration pursuant to this paragraph shall specify the time-period required by Article 22.

4. - The courts of Contracting States shall apply Article 22 in conformity with the declaration made by the Contracting State which is the primary insolvency jurisdiction.

Article 69

Reservations, declarations and non-application of reciprocity principle

1. - No reservations are permitted except those expressly authorised in this Convention.

2. - No declarations are permitted except those expressly authorised in this Convention.

3. - The provisions of this Convention subject to any reservation or declaration shall be binding on the Contracting States that do not make such reservations or declarations in their relations vis-à-vis the reserving or declaring Contracting State.

Article 70

Subsequent declarations

1. - A Contracting State may make a subsequent declaration at any time after the date on which this Convention enters into force for that Contracting State, by the deposit of an instrument to that effect with the depositary.

2. - Any such subsequent declaration shall take effect on the first day of the month following the expiration of six months after the date of deposit of the instrument in which such declaration is made with the depositary. Where a longer period for that declaration to take effect is specified in the instrument in which such declaration is made, it shall take effect upon the expiration of such longer period after its deposit with the depositary.

3. - Notwithstanding the previous paragraphs, this Convention shall continue to apply, as if no such subsequent declaration had been made, in respect of all rights and interests arising prior to the effective date of that subsequent declaration.

Article 71

Withdrawal of declarations and reservations

Any Contracting State which makes a declaration under, or a reservation to this Convention may withdraw it at any time by a formal notification in writing addressed to the depositary. Such withdrawal is to take effect on the first day of the month following the expiration of six months after the date of the receipt of the notification by the depositary.

Article 72

Denunciations

1. - This Convention may be denounced by any Contracting State at any time after the date on which it enters into force for that Contracting State, by the deposit of an instrument to that effect with the depositary.

2. - Any such denunciation shall take effect on the first day of the month following the expiration of [six/twelve] months after the date of deposit of the instrument of denunciation with the depositary. Where a longer period for that denunciation to take effect is specified in the instrument of denunciation, it shall take effect upon the expiration of such longer period after its deposit with the depositary.

3. - Notwithstanding the previous paragraphs, this Convention shall continue to apply, as if no such denunciation had been made, in respect of all rights and interests arising prior to the effective date of that denunciation.

Article 73

Establishment and responsibilities of Review Board

1. - A five-member Review Board shall promptly be appointed to prepare yearly reports for the Contracting States addressing the matters specified in sub-paragraphs (a) to (d) of paragraph 2.

2. - At the request of not less than twenty-five per cent of the Contracting States, conferences of the Contracting States shall be convened from time to time to consider:

(a) the practical operation of this Convention and its effectiveness in facilitating the asset-based financing and leasing of aircraft objects;

(b) the judicial interpretation given to the terms of this Convention and the regulations;

(c) the functioning of the international registration system and the performance of the Registrar and its oversight by the Supervisory Authority; and

(d) whether any modifications to this Convention or the arrangements relating to the International Registry are desirable.

Article 74

Depositary arrangements

1. - This Convention shall be deposited with the [....].

2. - The [depositary] shall:

(a) inform all Contracting States of this Convention and [....] of:

(i) each new signature or deposit of an instrument of ratification, acceptance, approval or accession, together with the date thereof;

(ii) each declaration made in accordance with this Convention;

(iii) the withdrawal of any declaration;

(iv) the date of entry into force of this Convention; and

(v) the deposit of an instrument of denunciation of this Convention together with the date of its deposit and the date on which it takes effect;

4 transmit certified true copies of this Convention to all signatory States, to all States acceding to the Convention and to [....];

(c) provide the Registrar with the contents of each instrument of ratification, acceptance, approval, accession, declaration or withdrawal of a declaration, so that the information contained therein may be made publicly accessible; and

(d) perform such other functions customary for depositaries.

Article 75

Transitional provisions

Alternative A

[This Convention does not apply to a pre-existing right or interest, which shall retain the priority it enjoyed before this Convention entered into force.]

Alternative B1(10)

[1. - Except as provided by paragraph 2, this Convention does not apply to a pre-existing right or interest.

2. - Any pre-existing right or interest of a kind referred to in Article 2(2) shall retain the priority it enjoyed before this Convention entered into force if it is registered in the International Registry before the expiry of a transitional period of [10 years] after the entering into force of this Convention in the Contracting State under the law of which it was created or arose. Where such a pre-existing right or interest is not so registered, its priority shall be determined in accordance with Article 41.

3. - The preceding paragraph does not apply to any right or interest in an aircraft object created or arising under the law of a State which has not become a Contracting State.]

[Remaining Final Provisions to be prepared by the Diplomatic Conference]

ANNEX

FORM OF IRREVOCABLE DE-REGISTRATION
AND EXPORT REQUEST AUTHORISATION

Annex Referred to in Article 24(1)

[Insert Date]

To: [Insert Name of Registry Authority]

Re: Irrevocable De-Registration and Export Request Authorisation

The undersigned is the registered [operator] [owner](11) of the [insert the airframe/helicopter manufacturer name and model number] bearing manufacturer's serial number [insert manufacturer's serial number] and registration [number] [mark] [insert registration number/mark] (together with all installed, incorporated or attached accessories, parts and equipment, the "aircraft").

This instrument is an irrevocable de-registration and export request authorisation issued by the undersigned in favour of [insert name of creditor] ("the authorised party") under the authority of Article 24 of the Convention on International Interests in Aircraft Equipment. In accordance with that Article, the undersigned hereby requests:

(i) recognition that the authorised party or the person it certifies as its designee is the sole person entitled to:

(a) procure the de-registration of the aircraft from the [insert name of aircraft register] maintained by the [insert name of registry authority] for the purposes of Chapter III of the Convention on International Civil Aviation, signed at Chicago, on 7 December 1944; and

(b) procure the export and physical transfer of the aircraft from [insert name of country]; and

(ii) confirmation that the authorised party or the person it certifies as its designee may take the action specified in clause (i) above on written demand without the consent of the undersigned and that, upon such demand, the authorities in [insert name of country] shall co-operate with the authorised party with a view to the speedy completion of such action.

The rights in favour of the authorised party established by this instrument may not be revoked by the undersigned without the written consent of the authorised party.

Please acknowledge your agreement to this request and its terms by appropriate notation in the space provided below and lodging this instrument in [insert name of registry authority].

[insert name of operator/owner]

__________________________

Agreed to and lodged this By: [insert name of signatory]

[insert date] Its: [insert title of signatory]

____________

[insert relevant notational details]

Next Annual Meeting

2018 Conference (Centennial)

Delta Hotel

Québec City, QC

August 12 - 16, 2018