Avionics News October 2019 - 70

industry

AN OVERVIEW OF
THE CAPE TOWN
CONVENTION
S T O R Y

I

B Y

L I N D S E Y

nternational Civil Aviation Organization member
states met at the Cape Town Convention in 2001 to
discuss and ratify the Convention on International
Interests in Mobile Equipment ("the Convention") and
the Protocol on Matters specific to Aircraft Equipment ("the
Aircraft Equipment Protocol").
The United States was one of the
first ratifying states.
The Cape Town Convention and
Aircraft Protocol, establishing the
International Registry (sometimes
referred to as the Cape Town
International Registry), was
adopted in November 2001. The
International Registry intends to
protect airframes, aircraft engines,
and helicopters with priority being
determined on a "first-to-file" basis. Some of the interests that
can be "perfected" (or validated) by registration are security
interests, leasehold interests, conditional sales agreements,
and ownership interests.
The International Registry is intended to facilitate financing
and leasing of aviation equipment and mitigate risks of
aircraft transactions - particularly international transactions.
70

avionics news

*

october

2019

M C F A R R E N

It creates legally enforceable rights to aviation assets. The
International Registry also allows creditors to preserve
priority against registered interests. Essentially, it's a firstcome, first-served system. A registered international interest
has priority over subsequent registered interests and over an
unregistered interest.
The following assets should
be entered into the International
Registry:
*	Aircraft certificated with at least
eight seats (including crew) or
certificated to transport goods in
excess of 6,050 pounds (7,250
kilograms).
*	Helicopters certificated with at
least five seats (including crew) or
certificated to transport cargo in
excess of 990 pounds (450 kilograms).
*	 Piston or turbo-shaft engines rates at equal to or
greater than 550 horsepower or the equivalent.
*	 Turbine engines with 1,750 pounds or more of thrust.
All of the above transactions - whether domestic or
international transactions - are eligible for registration under
the Cape Town Treaty.



Avionics News October 2019

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Avionics News October 2019 - No label
Avionics News October 2019 - Cover1
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