The Cape Town Treaty and International Registry of Mobile Assets ("Cape Town Treaty") went into effect March 1, 2006. The Cape Town Treaty modified existing law and created new law. It created an International Registry ("IR") by establishing "international interests" with respect to specified financing instruments that affect designated classes of aircraft called "aircraft objects."
The perfection of the international interests and determination of priority of the international interests is accomplished through registration with the IR via the internet, which has replaced FAA filing as priority perfection. Under U.S. law, the entity to register their international interest with the IR first will prevail over subsequently registered and unregistered international interests. Under U.S. law, documents must be filed with the FAA to maintain validity of IR registration on U.S. registered aircraft.
Our company can act as administrator on behalf of entities wishing to register interests with the IR. We will act as the Professional User Entity (PUE) making IR transactions much easier for the client.
Anyone who may become an Owner, Lender, Lessor, Lessee, Seller, Purchaser of an aircraft object or who may become an assignee or subrogee of an international interest, or almost anyone else who may be involved in a transaction involving an aircraft object and an international interest should be concerned with the Cape Town Treaty. This is the case even though all of the parties to the transaction are U.S. citizens and the aircraft may have never left the U.S. nor will it ever leave the U.S. The Cape Town Treaty applies because of the nature of the equipment and not whether the transaction is domestic or international.
Click Here to contact Aero-Space Reports with any questions relating to the International Registry or the Cape Town Treaty.