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Maltese Laws |
ARRANGEMENT OF ACT
Articles
Part I Preliminary and General 1 - 2
Part II Registration of Aircraft 3 - 17
Part III International Registrant 18 - 24
Part IV Mortgages on Aircraft 25- 41
Part V Special Privileges on Aircraft 42 - 44
Part VI Implementation of the Cape Town Convention 45 - 49
Part VII Rules on the Operation of Security Rights in Aircraft when governed by Two Parts of this Act
50 - 55
Part VIII Miscellaneous 56 - 62
SCHEDULES
First Schedule The Implementing Law in respect of the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol thereto
Chapter I Sphere of application and general provisions 1 - 9
Chapter II Constitution of an international interest; contracts of sale 10 - 11
Chapter III Default remedies 12 - 25
Chapter IV Registrations in the international registration system 26
Chapter V Modalities of registration 26 - 32
Chapter VI Recognition of certain privileges and immunities of the 33
Supervisory Authority and the Registrar
Chapter VII Recognition of Liability of the Registrar 34
Chapter VIII Effects of an international interest as against third parties 35 - 36
Chapter IX Assignments of associated rights and international interests;
rights of subrogation
37 - 44
Chapter X Non-consensual right or interest 45 - 46
Chapter XI Jurisdiction 47 - 51
Chapter XII Relationship with other Conventions (intentionally omitted) 52 - 55
Chapter XIII Final Provisions 56 - 60
Second Schedule Form of Irrevocable De-Registration and Export Request Authorisation
Third Schedule List of Sources and Materials to be used by Court
Fourth Schedule Part A: Table of General Classification of Aircraft
Part B: Nationality and Registration Marks of Aircraft Registered in
Malta
AIRCRAFT REGISTRATION ACT
To regulate the registration of aircraft and aircraft mortgages and to repeal and re-enact various existing laws relating to such matters; and to regulate the aircraft register, to introduce rules on aircraft mortgages, their registration and their enforcement, to introduce rules on special privileges on aircraft, and to implement the Convention on International Interests in Mobile Equipment and Protocol thereto on Matters Specific to Aircraft Equipment.
*
ACT VIII of 2010.
PRELIMINARY AND GENERAL
Short title and commencement.
(2) This Act shall come into force on such a date as the Minister may by Notice in the Gazette establish, and different dates may be so established for different provisions or different purposes of this Act.
Interpretation. 2. In this Act, unless the context otherwise requires:
"Conso lidated Fund " h a s t h e same meanin g assi gned under article 124 of the Constitution;
"a ircraft" means any machine that can der i v e su pp or t in th e atmosphere from the reactions of the air other than
the reactions of the air against the earth’s surface as may be illustrated or amplified by the Minister by regulations but shall
exclude aircraft used in the military, customs or police services of any State;
"the Aircraft Protocol" and "the Protocol" mean the Protocol to the Convention on International Interests in Mobile
Equipment in Matt er s Specifi c to Ai rcraf t Eq uipment that was opened for signature at Cape Town on 16 November 2001, the text
of which is consolidated with the text of the Cape To wn Convention and substantively reproduced in the Fi rst Schedule reflect i
ng the Implementing Law;
"air service" means a flight or a series of flights carrying passengers, cargo and, or m ail for remuneration and, or hire
as defined in Article 2(4) of Regulation (EC) No. 1008/2008 of the European Parliament and of the Council of 24 September, 2008, on common rules for the operation of air services in the Community;
"air transport undertaking" has the same meaning as is given to it
Cap. 232.
in the Civil Aviation Act;
"approved jurisdiction" m e ans any member country of the Organisation for Economic Co-operation and Development and any
other country approved by the Minister by notice for the purposes
*Not yet in force.
of this Act;
"the Auth ority" means the Aut hority for Tr ansport in Malta established under the Authority for Transport in Malta Act;
"aviation undertaking" means a legal organisation established under the laws of Malta the objects of which are:
(a) to own aircraft; or
(b) to operate aircraft; or
(c) to manage aircraft; or
(d) to carry on business relating to the - (i) financing;
(ii) insurance;
(iii) brokerage;
(iv) maintenance;
(v) repair and overhaul; (vi) classification; or
(vii) surveying
of aircraft, and to carry on all, or any ancillary business related thereto;
"the Cape Town Convention" and "the Convention" mean the Convention on International Interests in Mobile Equipment
that was opened for signature at Cape Town on 16 November 2001, the text of which is consolidated with the text of the Aircraft Protocol
and substantively reproduced in the First Schedule reflecting the Implementing Law;
"Certificate of Registration" means the certificate of registration issued by the Director General in accordance with the
provisions of this Act;
"crew" means any person employed or engaged on an aircraft in flight on the business of the aircraft;
"Declaration" means a declaration made by a State acceding to the Cape Town Convention pursuant to a particular provision
or provisions of the Convention or its Aircraft Protocol as the case may be;
"the Depositary" means the Headquarters of the International
Institute for the Unification of Private Law (UNIDROIT) in Rome;
"the Diplomatic Conference" means the Diplomatic Conference held under the joint auspices of the International Civil Aviation
Organisation and the International Institute of Private Law at Cape Town from 29 October to 16 November 2001;
"the Director General" means the Director General responsible for Civil Aviation in Malta, and to the extent of the authority
given, any person authorised in that behalf by the Director General;
" EEA S t ate" means a S t ate which is a pa rty to the EEA Agreement;
" EEA Agreement" mea n s the Agre ement on the Europea n
Cap. 499.
Cap. 232.
Economic Area signed at Oporto on the 2 May, 1992 as adjusted by the Protocol signed at Brussels on the 17 March, 1993, as modified
or supplemented from time to time;
"effective date" means the date established in accordance with article 56 of the First Schedule;
"Imp lement ing Law" means the Model for Nati onal Implementing Legislation prepared by the Aviation Working Group
to UNIDROIT, dated August, 2008 substantively reproduced in the First Schedule;
"lease agreement" means an agreement by which a person (the lessor) grants a right to possession or control for a stipulated
period of time, of an aircraft or an aircraft engine (with or without the option to purchase) to another person (the lessee) in
return for a rental or other payment, and the terms "lease", "sub-lease", "sub- lessor" and "sub-lessee"
shall be construed accordingly and where the term "lease" is used, it shall include a "sub-lease", where the
term "lessor" is used, it shall include a "sub-lessor", and where the term "lessee" is used, it shall
include a "sub-lessee";
"M inister" means the Minister responsible for transport, and includes any person authorised by such Minister in that behalf;
"mortgage" means a mortgage registered in terms of this Act and shall, where the context so requires, include an equivalent
charge r e g i ster ed in the I n ternational Registr y in ter m s of th e First Schedule, and "mortgagee" shall be construed
accordingly;
"National Aircraft Register" or "register" mean the register to be maintained by the Director General in terms
of article 4;
"operating agreement", for the purposes of Part II, means a lease ag reem ent and any oth e r ag reem ent by virtu e of
wh ich the o p erati on o f an aircraft is granted by an own e r (or any p e rson authorised to grant such powers , including a
lessee), to another person and under which the possession or control of the aircraft is vested in the operator for such purpose,
and shall include a sale agreement with reserved rights or conditions;
"operating licence" means a licence granted under article 7 of the Civil Aviation Act to an air transport undertaking for the provision of air service as stated in the operating licence;
"operator" means the person entitled to operate the aircraft as owner, or under an operating agreement;
"regis tra n t" means that pers on in whose na me an airc ra ft is registered in the National Aircraft Register;
"resolution" means a resolution of the House of Representatives; "security interest" mean s an interest granted
in terms of a
security agreement drawn up to secure the rights of -
(a) a person who is a conditional seller under a title reservation agreement; or
(b) the rights of a person who is a lessor under a lease, and which is recognised and regulated in terms of article 41;
"temporary ti tle", for t h e purpos es of Part II, means a lease agreement, an operating agreement, or similar agreement;
"undertaking" has the same meaning as assigned to it in article 2 of the Companies Act.
(2) The definition of the words referred to in the preceding subarticle is supplemented by definitions in article 1 of the
First Schedule for the purposes of the said Schedule. Where words used in this Act are defined in the First Schedule, they shall
apply also to the interpretation of the provisions of this Act.
(3) Where this Act refers to a matter which may be prescribed, unless this Act expressly designates the person authorised and the
manner thereof, such matter may be prescribed by the Minister through regulations, by the Authority through directives, or by the
Director General through guidelines or any one or all of them as may be d eterm ined, provided that in the case of any confli ct,
a re gu lation by th e Minist er shall prevail over a dire ctive, and a directive shall prevail over a guideline.
(4) When the Implementing Law applies, it shall prevail over any ot her part o f th is Act an d o v er an y o t her l a w, in
case o f conflict.
(5) To the extent that any matter provided for by the I m plement i n g Law is n o t regu lated by th is
Act , t h en the Implementing Law shall govern such matter and any other laws shall be construed so as to give effect to such
provisions of the Implementing Law as may be applicable.
(6) Where this Act is silent on any matter, such matter shall be determ ined in accordance with t he pr incipl es reflected in
oth er provisions of other laws of Malta relating to aviation.
(7) This Act shall be construed consistently with Regulation
EC No 1008/2008 of the European Parliament and of the Council of
24 Septem ber 2008 on comm on rules for the operation of air
services in the Community.
(8) In so far as the operation of air services is carried out outsid e the European C o mm uni ty, th is Act shal l
be co nstrued consistently with the International Treaties applicable to aviation to which Malta is a party.
REGISTRATION OF AIRCRAFT
(a) the Civil Aviation Act;
(b) the Civil Aviation (Air Operators’ Certificates) Act, where relevant; and
(c) any other law applicable to the operation of aircraft and events occurring thereon or in relation thereto.
Cap. 386.
Prevalence of Implementing Law in case of conflict.
Application of Implementing Law in case of lacuna.
Aircraft registered under this Act.
Cap. 232. Cap. 218.
(2) The Authority shall be the authority for the registration of aircraft in Malta and shall cause such registration to be recorded
in a register to be kept by the Director General, to whom all powers relating to registration are hereby delegated.
(3) It shall also be lawful to register any aircraft which is under co nstructio n as so on as it is uni quely identif iab l e,
under such co ndi tio ns as th e Min i ster may prescri b e by regu lat i on s. A descri pt ion of an aircraft th at cont ai ns i
t s manu factu r er serial number, the name of the manufacturer and its model designation shall be sufficient to render an aircraft
uniquely identifiable.
For all purposes of this Act, the manufacturer of the aircraft shall, unless express l y agreed othe rwis e with a buyer , be considered
to be the owner of such aircraft under construction and shall, subject to satisfying the requirements of this Act, be entitled to
register an aircraft accordingly.
(4) The interest in an aircraft registered in terms of this Act may be divided into shares or other interests as may be specified
on registration and the interest in the aircraft shall be noted by the Director General pursuant to article 4(2)(b)(i) in the manner which reflects the ownership interests in the aircraft.
An operator or a trustee who registers an aircraft may request that his position as registrant be recorded more than once so as to
reflect underlying principals or beneficial interests.
(5) When an aircraft is registered, the engines of such aircraft and any replacement engines may also be noted in the National
Aircraft Register at the request o f t he regi st ra nt an d, wh en t he engines do not belong to the registrant, with the consent
of the owner of the said engines.
National Aircraft
Register.
(2) When an aircraft is registered in terms of this Act, the Director General shall record or note transactions or information
in accordance with this article and other provisions of this Act and in such manner as may be prescribed from time to time. In accordance
with this subarticle:
(a) the Director General shall record the following in the register:
(i) the physical details of the aircraft;
(ii) the physical details of the engines attached to the aircraft and any replacement engines owned by the registrant to the extent
they are designated for use on the aircraft;
(iii) the name and address of the registrant and in what capacity the registrant has registered the aircraft in terms of
article 5;
(iv) the details of any mortgages registered on the aircraft, and subsequently all transactions relating to mortgages
registrable in terms of this
Act;
(v) the details of any irrevocable de-registration and export request authorisation, or any other power of attorney, irrevocable
or otherwise, in a separate document or as part of an agreement between the parties granted to an owner or to a lessor
of an aircraft or granted by way of security to the mortgagee, or to a third party for the benefit of any such person,
granting powers relating to the exercise of rights relating to the aircraft, or to the closure of the register on behalf
of the registrant and, in the event that a mandate or power of attorney is granted for a stated period of time after which it
shall lapse, such date shall also be recorded in the register and the registration of the mandate shall have no effect after such
date;
(vi) any other act which is to be registered in the National Aircraft Register under the provisions of article 31 or of
any other law;
(b) the Director General shall note the following matters in the National Aircraft Register if requested to do so by the registrant
or by any other person who, with the consent of the registrant, demonstrates an interest in such information being entered
in the National Aircraft Register:
(i) the ownership rights in the aircraft or an engine including when:
1. held by a trustee, for a single interest or more;
2. held by one or more owners;
3. divided into fractional shares or otherwise;
or
4. held under an agreement with reservation of ownership rights or under conditions affecting title in terms of article
31.
The information and documents which are to be provided to the Director General relating to the above may be prescribed from time to
time;
(ii) the lessor rights relating to the aircraft or an engine when the lessor is a person different from the owner, although
the same person may appear on the register as lessee in terms of the sub- paragraph (iii);
(iii) the lessee rights in relation to the aircraft or an engine and all matters relating thereto in terms of article 31;
(iv) the details of the resident agent where the registrant is an international registrant;
(v) information on any international interest registered in the International Registry and the
debtor thereof.
(3) It shall not be a condition for registration that a registrant of an aircraft shall have the ownership and, or the lessor rights
in the aircraft or its engines noted in the National Aircraft Register.
(4) Registration in the National Aircraft Register, whether by means of a record or a no tation, shall ha ve th e fo llowing legal
effects in relation to the information and the acts to which it refers:
(a) it renders such information public and the information shall be considered to be within the knowledge of third parties;
(b) the acts shall be effective against third parties;
(c) it shall create priority, according to the provisions of this Act and applicable law, between different rights, provided that,
except as stated in article 31 and in the First Schedule, the notation of ownership or lessee rights shall not imply any
priority over those of the holder of a registered mortgage;
(d) where expressly conditional on registration, it shall create legal effects between the parties to certain transactions;
and
(e) it shall have all other effects under the applicable law.
Registrants of aircraft to be operators of aircraft.
(a) an owner of the aircraft who operates the said aircraft;
or
(b) an owner of an aircraft under construction or temporarily not being operated or managed; or
(c) an operator of an aircraft under a temporary title which satisfies the conditions which may be prescribed; or
(d) a buyer of an aircraft under a conditional sale or title reservation or similar agreement which satisfies the conditions
which may be prescribed and who is authorised thereunder to operate the aircraft.
(2) For the purposes of subarticle (1)(c) and (d), the Director General shall exercise his discretion as to whether the operator ’s agreement qualifies to register an aircraft
thereunder.
The information and documents which are to be provided to the Director General as evidence of the right to operate the aircraft may
be prescribed from time to time.
(3) Where the applicant for registration of an aircraft is a person enjoying a temporary title, whether or not an unqualified
person holds any interest therein by way of ownership, the aircraft may be registered in the name of that person upon the Director
General being satisfied that the aircraft may otherwise be properly so regi stered, and, subject to the provisions of th is arti
cle, the aircraft may remain so registered for the duration of the temporary
title.
(a) the Government of Malta;
(b) a citizen of Malta or a citizen of a Member State of the European Union or of an EEA State, or Switzerland, having a place of
residence or business in Malta, the European Union, the European Economic Area or Switzerland, including a person
sharing in the ownership of such aircraft by virtue of the community of acquests subsisting between such person and
a citizen as described above in whose name the aircraft is registered;
(c) an undertaking formed and existing in accordance with the laws of Malta, of a Member State of the European Union, of an EEA State
or of Switzerland and having its registered office, central administration and principal place of business within
Malta, or the European Union, or the European Economic Area or Switzerland, whereof not less than fifty per cent of the undertaking
is owned and effectively controlled by the Government of Malta, or by any Member State of the European Union, or by persons
referred to in paragraph (b), whether directly or indirectly through one or more intermediate undertakings;
(d) a natural person who is a citizen of, or an undertaking established in, an approved jurisdiction, other than those mentioned
in paragraphs (b) or (c), shall be qualified to register aircraft in construction or one which is not used to provide
air services if it:
(i) enjoys, to the satisfaction of the Director General, legal capacity to own or operate an aircraft in terms
of the law under which it has been established or registered;
(ii) complies with the requirements established under this Act, and any regulations made or guidelines issued pursuant
thereto;
(iii) satisfies the Director General that it can and will ensure due observance of the laws of Malta relating to civil aviation;
and
(iv) complies with the requirements applicable to an international registrant in terms of Part III.
(2) Where the applicant for registration is a trustee, the D i recto r General sh all pay regard to the beneficiar ies
o f the relevant trust to determine the eligibility of the trustee to register an aircraft u nder this Act and no regard shall
be paid to t h e nationality of the trustee himself:
Qualified persons.
Cap. 377.
Provided that the Director General shall implement procedures to ensure the confidentiality of the information he may
obtain on the identity of the beneficiaries and shall not make any such information available to third parties without the prior
written consent o f t h e trustee, du ly authenticated, or otherwise in accordance with the provisions of the Professional Secrecy Act.
(3) In this Act, references to any interest in an aircraft do not include any references to an interest in an aircraft to which
a person is entitled only by virtue of his membership of a flying club and the references in this Part to the registrant include,
in the case of a deceased person , his heirs at law, and in t h e case of a b ody co rpo r at e wh ich has been di sso l ved , its
liq uid a tor o r, u n ti l a liquidator is appo in ted, each of th e di rectors at the time of the dissolution, or equivalent in
the applicable jurisdiction.
Conditions of eligibility to joint or fractional ownership.
(2) The same rule shall apply when the applicant for registration is a tr u s tee where refer e nce shall be m
a de to t h e beneficial interests mutatis mutandis.
(3) Where the application for registration of an aircraft is based on the operation of such aircraft and where such operation is
being carried out by more than one person, then all the operators of the aircraft must be eligible as qualified persons:
Provided that in the case of an aircraft which is not used to provide air services, the Minister may by re gu lations establish different
conditions for the eligibility to register an aircraft when operated by more than one person.
Applications for registration.
(a) to issue a Certificate of Registration; and
(b) to determine the classification of the aircraft for the purpose of application of this Act and any applicable rules and regulations.
(2) The Director General may from time to time issue guidelines in order to determine the applicability of rules
when an aircraft is partly used for remuneration and, or hire, and partly not, subject to due observance of applicable international
conventions
and regulations.
(a) the number of the certificate of registration;
(b) the nationality marks of the aircraft, and the registration marks assigned to it by the Director General;
(c) the name of the constructor of the aircraft and its designation;
(d) the serial number of the aircraft; and
(e) the manufacturer, the serial numbers, and physical details of the engines attached to the aircraft and any replacement
engines to the extent they are designated for use on the aircraft.
Particulars of aircraft, engines, etc., to be entered in the National Aircraft Register.
(2) Where an aircraft is registered by a registrant under article
5( c ) or ( d ), every person who h o lds any interest by way of
ownership or title in the aircraft or a share therein may make a request in writing to the Director General to have his name, address
and o w nersh i p i n terest s or tit le no ted i n th e cert i fi cat e of
registration.
(3) A certificate of registration shall be issued when an aircraft is reg i st er ed wh il e it i s st il l un der c o n s tr uct
i o n , bu t it sh all expressly state that the aircraft is not permitted to operate until such time as it complies with the provisions
of the applicable law.
(4) A certificate of registration purporting to be signed by the Director General or other authorized officer shall constitute
prima facie evidence that it has been so issued, and of its contents.
Certificate of
Registration.
Director General in writing of -
(a) any change in the particulars which were furnished to the Director General upon application being made for the registration of
the aircraft or the title thereto;
(b) the destruction of the aircraft, or its permanent withdrawal from use;
(c) in the case of an aircraft registered pursuant to article
5(c), the termination of the temporary title and in case of an aircraft registered pursuant to article 5(d), any event which brings
into force the reversion of title to
the seller of the aircraft or the possession, control or operation of the aircraft to a person other than the
Obligation of the registrant to notify the Director General of certain events.
registrant; and
(d) where an aircraft is subject to a registered mortgage or other security interest, any event amounting to an enforcement
thereof which has the effect of transferring the title or the possession, control, or operation of the
aircraft to a person other than the registrant.
(2) The registrant shall provide such information as may be requested relating to any such events within five working days of
a demand in writing from the Director General.
Updating of the National Aircraft Register.
Provided that where there is registered in the National Aircraft Register an aircraft mortgage the Director General shall
provide the mortgagee with fifteen days’ notice of his intent and receive any rep r esentatio ns from the mo rtgagee. Th e Director
General shall act in such a manner as to protect the status of the mortgage and the rights of the mortgagee:
Provided further that where there is a person recorded as ow ner o r lesso r of t h e ai rcr a f t in t e rms o f ar ti cle 4( 2)
( b ), t h e Di rector General shall prov ide the o wner o r lessor wi th f ifteen days’ notice of his intent and receive any representations
from the owner or lessor. The Director General shall act in such a manner as to protect their rights as owner or lessor as the case
may be.
Cancellation of registration.
(a) it appears to the Director General that the aircraft is registered outside Malta and that such registration does not cease,
by operation of law, upon the aircraft being registered in Malta;
(b) a person who is not qualified in terms of article 6 holds an interest above the applicable threshold by way of ownership in the
aircraft or share therein:
Provided that where a registered mortgagee or a holder of a security interest takes such action as is considered necessary to protect
his rights, including temporarily vesting the aircraft in his own name or that of a special purpose vehicle for himself
for the purpose of protecting his interests, the Director General shall not cancel the registration of the aircraft on the
basis that such person is not qualified to register such aircraft until such time as such rights are enforced;
(c) the operator of the aircraft, being the registrant of the aircraft, is no longer a qualified person:
Provided that if an unqualified person has been permitted to operate a registered aircraft together with qualified persons
under specified conditions, the operation by such person under such conditions shall be disregarded for the purpose of this
provision:
Provided further that where a registered mortgagee or a holder of a security interest takes such action as is considered necessary
to protect his rights, including temporarily taking over the operation of the aircraft directly (if competent) or through a competent
person, nothing in this subarticle shall require the Director General to cancel the registration of the aircraft until such
time as the aircraft has been transferred to a third party which is not a qualified person in terms of article
6;
(d) in the opinion of the Director General, the aircraft could more suitably be registered elsewhere;
(e) in the opinion of the Minister, it would be inexpedient in the public interest for the aircraft to be or to continue
to be registered in Malta;
(f) the registrant has made a written request to the Director General for cancellation of registration and closure of register;
(g) it appears to the Director General that any applicable requirements under the Civil Aviation Act or under regulations or directives thereunder or under EU regulations, relating to the safety of the operation or the
airworthiness of that aircraft, are not being faithfully or cannot be complied with; or
(h) it is not compliant with any applicable statutory aircraft registration conditions in respect of aircraft noise or
exhaust gas emissions.
(2) Where the request is made by an authorised person or his d e legate i n writ in g, p u r s u a nt to an i rrevo cab l e d e
-r eg istr at io n authorisation or power of attorney which has been registered in the National Aircraft Register or in the International
Registry, such request shall be acted upon in all cases.
(3) The certificate of registration of an aircraft is in any case to be considered void if the registration of the aircraft to
which it relates is cancelled.
(4) The registration of an aircraft which is the subject of an undischarged mortgage shall not become void by virtue of any of
the ev ents referred to in subar ticl e (1 ), no r sh all the Director General cancel the registration of such an aircraft pursuant
to this article unless all mortgagees of that aircraft have consented to the cancellation:
Provided that in the case referred to in subarticle (1)(e), the
Minister may order that an aircraft registration be cancelled even
Cap. 232.
Cap. 490.
without the consent of any mortgagee provided that the provisions of the following subarticles shall apply prior to the cancellation
taking place.
(5) The Director General shall give all registrants and any mortgagees at least fifteen working days’ notice of any intent
to close the register, in terms of this article, unless the cause for such closure is remedied within such ti me or su ch lo ng
er per i o d expressly stated in the notice. The Director General shall specify in the notice the reason for the proposed closure
and the expiry date for the issue to be addressed, failing which closure will be effected.
(6) The registrant and any mortgagee may appeal to the Ad min ist r at iv e Rev i ew T r ib un al est a bl ish e d
u n d e r th e Admini s trative Justice Act , wi thin fifteen w o rking day s o f receiving the relevant notice under subarticle (5) either:
(a) on the basis that it is not justified; or
(b) on the basis that effective action has been taken to remedy the complaint and the Director General has failed to
withdraw the order to cancel.
(7) Pending the determination of an appeal under the preceding su barti c le , th e D i rect or G e neral shall not procee d to
close the register.
Register closed save unsatisfied mortgages and security interests.
Provided that the Director General may, without prejudice to rights of the mortgagee, comm unicate independently with the mortgagee or holder of any security interest to take all action as is necessary, includ ing extendi ng t h e val i dity of t h e regi st rati on beyond the stated deadline, for the orderly closure of the registry and enforcement of the mortgage or other security interest as well as to ensure the safe operation of the aircraft.
Inspection of the National Aircraft Register.
(2) The Director General may make the information in the National Aircraft Register accessible on the internet or by any
other suitable electronic means.
(3) A transcript of the National Aircraft Register shall be issued upon request and upon the payment of the prescribed
fee.
Nationality and registration marks.
(2) An aircraft shall not bear any marks which purport to indicate -
(a) that the aircraft is registered in a country in which it is not in fact registered; or
(b) that the aircraft is an aircraft used in the military, customs or police services of a particular country if it is not
in fact such an aircraft, unless the appropriate authority of that country has sanctioned the bearing of such marks.
INTERNATIONAL REGISTRANT
19. A foreign national or undertaking, not being a person mentioned in article 6(1)(b) or (c) (in this Act referred to as an "international registrant") shall be deemed to satisfy the qualifying requirements of article 6(d) unless the Director General has made a declaration to the contrary; and the Director General may, before withdrawing such declaration, impose such conditions as he may deem fit in the circumstances that may include the provision of a guarantee or a bond.
(a) is habitually resident in Malta;
(b) is not interdicted or incapacitated or is an undischarged bankrupt;
(c) has not been convicted of any of the crimes affecting public trust or of theft or of fraud or money laundering or of knowingly
receiving property obtained by theft or fraud; and
(d) has satisfied the Director General that he is a person capable of carrying out the functions stated under this Act.
(2) A resident agent shall be deemed to satisfy the Director General unless the Director General has made a declaration to the
contrary; and the Director General may, before withdrawing such declaration, impose such conditi ons as he m a y deem fit in th
e circumstances.
(3) The international registrant shall ensure that it has a validly appointed resident agent at all times.
(4) Notices of the appointment, resignation or removal of the resident ag ent shall be filed with the Directo r General in the
prescribed form, and where a notice of appointment is given it shall be accompanied by the acceptance in writing of the resident
agent of such appointment.
Fees.
International registrants’ eligibility to register aircraft.
International registrant.
Appointment of resident agent.
(5) The Director General may at any time refuse or reject any notice of an appointment which he considers is not in compliance with this Act and in such case the international r egistrant shall immediately appoint another resident agent.
Jurisdiction of the
Maltese courts.
Cap. 12. Functions of the
resident agent.
21. An international registrant in whose name an aircraft is, or has been, registered under this Act, or in whose name a certificate of registration has been issued, shall be deemed to have submitted to the jurisdiction of the Maltese courts in terms of article 742(l)(g) of the Code of Organization and Civil Procedure for any action in connection with the aircraft while it is or was so registered.
(a) act as the channel of communication between the international registrant and the Director General and other Maltese
government departments and authorities;
(b) sign and file with the Director General and other Maltese government departments and authorities all declarations
and forms required in terms of Maltese law;
(c) act as the judicial representative of the international registrant for judicial proceedings in Malta, and any notice whether
by the Director General, other authority, any mortgagee or any other holder of a security interest, is sent to
the resident agent at his last registered address, shall be deemed to have been duly received by and notified to the international
registrant.
(2) The resident agent shall not be personally liable for non- compliance by the international registrant with any law, unless
the resident agent has personally undertaken liability in writing or has willfully or recklessly made a false declaration.
Powers of resident agent.
(a) sign and file applications, declarations, notices, returns and any other document required in terms of Maltese law;
(b) apply for the registration of an aircraft under this Act and for the closure of register of an aircraft, and to perform any ancillary
act in relation thereto;
(c) pay all relative fees and taxes payable in terms of
Maltese law;
(d) do all other things as may be considered conducive or ancillary for the registration of an aircraft under this Act or for the
maintenance of such registration;
(e) do all other things as may be considered conducive or ancillary to the cancellation of the registration of an aircraft under
this Act;
(f) authenticate documents issued by the international registrant; and
(g) receive formal notification on behalf of the international registrant when notifications are required in relation
to the aircraft, under the provisions of this Act or any agreement.
(2) The resident agent shall be deemed to have all the necessary power to provide binding undertakings to the Director General
on matters relating to the registration of the aircraft on behalf of the international registrant and the Director General is authorised
to act accordin gly; prov ided that nothing in this Act sh all imply any power of a resident agent to execute any document relating
to a mortgage or security interest unless expressly authorised to do so in writing.
(3) Except with regard to matters in relation to the registration of the aircraft under this Act and to the maintenance of such
registrat ion, th e in ternat ional regist rant may restrict any of the above powers of the resident agent:
Provided that where the international registrant limits such powers he shall file with the Director General a declaration to that
effect in the prescribed form and such limitation shall not have effect with regard to third parties until it is so filed and recorded
in the National Aircraft Register.
(4) The resident agent may appoint in writing another person to act in specific matters on his behalf provided that in so doing
the resident agent shall not be relinquishing the functions, powers and responsibilities conferred on him under this Part.
(2) The international registrant may remove the resident agent by giving at least fifteen days’ notice (or such other shorter
period as the Director General and any registered mortgagee may consent to) in wr iting to t h e Di rector General and to any registered
mortgagee.
(3) A registered mortgagee shall be deemed to enjoy the power to appoint a resident agent on behalf of the international registrant
in case of failure of the international registrant to appoint such an agent.
(4) Where the international registrant is in default of his o b lig ati ons und er this Act, th e Directo r General may,
wi thou t prejudice to any other action that can be taken under this Act, apply to the Civil Court, First Hall for the appointment
of a curator to act as resident agent until such time as another resident agent is validly appointed or the aircraft ceases to be
registered:
Provided that any expense incurred shall be considered as a charge due to the Director General under article 42.
Resignation or removal of resident agent.
Aircraft as security for debts.
MORTGAGES ON AIRCRAFT
(2) For the purposes of this Part, an aircraft shall comprise: (a) all data, manuals and technical records, and
(b) the airframe, all equipment, machinery and other
appurtenances as accessories belonging to the aircraft,
which are on board or which have been temporarily removed therefrom, and
(c) any engines owned by the owner of the aircraft whether attached to the aircraft or not, as well as any replacement engines
which are designated for use on the aircraft and owned by the owner of the aircraft but temporarily not attached to the aircraft.
Types of charges on aircraft.
Cap. 16.
(2) (a) Special privileges arise in virtue of law and no debt or other obligation other than those specified at law shall be secured by
a special privilege.
(b) To the extent that a special privilege is subject to registration in the International Registry, such
registration shall be an additional requirement for the continuing existence of such special privilege.
(3) Subject to the provisions of article 31 and the provisions of the First Schedule, engines and separate items on or in an aircraft
may themselves be subject to special privileges in accordance with the provisions of the Civil Code, in security of the debts therein specified.
Cap. 16. (4) For the purposes of article 573 of the Civil Code, where an engine has been attached to an airframe, which is not also owned by the airframe owner, each of the owners shall retain the ownership of their thing and the engine shall not accede to the airframe.
Any security over the aircraft shall not extend to any engine attached to the airframe when such engine does not belong to the ow ner of the airfram e who has grant e d the security , notwithstanding that the engines may be specifically referred to in t h e in st ru ment of m o rt gage, th e Nati onal Aircraft Reg i ster or elsewhere.
Priority of claims on aircraft over all other debts of owner.
ow ne r, h a p p en i n g a f t e r th e da te o n wh ic h t h e m o rt ga ge w a s created, or the s p e c ial privil ege, ac
tion or claim arose, notwi thstandi ng th at the o w ner at the co mm en cem e nt o f t h e bankruptcy and, or insolvency had
the aircraft in his possession, order or disposition, or was the reputed owner thereof, and such mortgage, privilege, action or claim
shall have preference, on the said aircraft, over all other debts, claims or interests of any other creditor of the bankrupt or of
any curator, liquidator, receiver or trustee, acting on behalf of any other creditors:
Provided that such mortgagee or claimant shall contribute to the costs o f win d in g u p , in cluding the liquidator ’s fees and
expenses in t h e event th at h e participates in the liquid a tio n proceedings and either:
(a) is ordered to do so by the court, which shall determine the extent of his liability, or
(b) he expressly agrees to do so in writing.
(2) All owners, lessors, lessees, creditors, mortgagees, holders of security interests and any other persons having an interest
in or in relation to an aircraft may enter into an inter-creditor agreement which shall govern the relevant relationship and shall
be binding and effective in accordance with its terms. Article 1996A of the Civil Code shall apply to such agreements.
(3) Any judicial sale proceedings instituted and any other enfo rcement action s init iated by an y registered mo rtgagee
or creditor enjoying a special privilege under article 42(1), shall not be interrupted or in any way hindered by any curator in bankruptcy
and, or in solv ency, wh eth e r vol un tary o r com p u l sory, or any liquidator, receiver or trustee of the owner for any cause
other than a cause that could be set up by the owner of an aircraft.
(4) The provisions of the preceding subarticle shall apply mu ta ti s mu ta nd is to proceedings for th e termination of any agreement or the taking of possession or control of an aircraft by the holder of a security
interest instituted against a conditional buyer or lessee.
(5) For the avoidance of doubt the provisions of the Companies Act relating to insolvency shall not apply insofar as inconsistent with this Act.
Cap. 16.
Cap. 386.
(2) Where the aircraft has been forfeited under an applicable law, the interest of the mortgagee in the aircraft shall terminate
if such person has authorised, consented to, or conspired, to the act, failure or omissio n in conse quence of which the ai rcraft
is forfeited.
(3) Where an aircraft has been sold pursuant to an order or with the approval of a competent court within whose jurisdiction the
aircraft was at the time of the sale, the interest of the mortgagees as well as that of any other creditor in the aircraft shall
pass on to the
Attachment and extinguishment of charges and other rights.
Cap. 16.
proceeds of the sale of the aircraft.
(4) Where an aircraft has been sold by a mortgagee in possession, in enforcement of such mortgage pursuant to his
rights i n t e r m s of th is Par t and it is state d i n the bi ll of sale th at the aircraft is being sold free from such encumbrance,
then -
(a) the rights arising from such registered mortgage shall no longer be exercisable in relation to that aircraft; and
(b) all rights of other creditors, including those of other registered mortgagees which rank after the said mortgage shall
no longer attach to the aircraft; and
(c) all rights of other creditors which rank before the said mortgage shall be exerciseable against the proceeds of sale by whosoever
held, but shall no longer attach to the aircraft.
(5) The creditor selling the aircraft to enforce his mortgage shall be bound to act in a comm ercially reasonable manner
and shall be bound by fiduciary duties towards the debtor and other creditors when effecting a sale of the aircraft and shall be
bound to:
(a) pay from the proceeds which he receives any creditor who ranks prior to his rights as he may determine or as may be determined
by the court in case of disagreement; and
(b) provide information to any creditor whose rights rank after his own rights and to the debtor for the conditions of sale, the expenses
incurred, the prior rights settled and any other deductions from the price received.
(6) Any hypothec or privilege whether general or over particular movables to which an aircraft may be subject under
the provisions of the Civil Code shall not continue to attach to it when the aircraft is transferred to third parties.
Mortgage of aircraft or share.
(2) A mortgage is indivisible notwithstanding the divisibility of the underlying debt or other obligation which it may secure.
(3) A mortgage shall attach to any proceeds from any ind e mnit y ari s ing fr om an y mi shaps as well as an y
insu ran c e proceeds; provided that this provision shall not apply in relation to an indemnity payable under a liability policy.
(4) It shall be lawful for a mortgage to be executed and registered in favour of a security trustee appointed or acting
under a trust for the benefit of persons to whom a debt or other obligation is due. Such security trustee shall, in any such case,
be recognised as the mortgagee of the particular mortgage and shall be entitled to exercise all the rights in relation to that mortgage
as are accorded to mortgagees by this Act or any other enactment. Any such security trust shall be governed by the provisions of
article 2095E of the Civil Code when the applicable law is the law of Malta.
(5) A mortgage registered under this Part may be drawn up to secure the payment of a princ ipa l sum and interest, an account
cu rr en t , as wel l as t h e per f or man c e of an y ot her o b l i g a ti on , including a future obligation due by the debtor
to the creditor. It sh all not be n ecessary to in dicate the mon e tary val u e of th e indebtedness in the mortgage unless it is
intended to secure a future obligation in which case a maximum sum by way of principal for whi c h th e m o rtg a ge is grant e d
m u st be exp r essl y stat ed in th e registered instrument and such sum shall be reflected in the register by the Director General.
A mortgage to secure a future obligation may only be granted in favour of a credit institution in an approved jurisdiction
or su ch o t he r o rga ni sa ti o n as m a y b e pe rm it t e d b y m e an s of a Notice issued by the Minister.
(6) For the purposes of this Act, the term ''account current'' means any indebtedness of a mortgagor in favour
of a mortgagee arising and det e rminable in accordance with an un derlyin g obligation and all the provisions of the Commercial
Code relative to the contract of account current including the provisions of article
264 thereof shall not apply thereto unless expressly agreed to by the parties.
(7) When an international interest is registered in the International Registry it shall be enforceable even in the
absence of the registration or notation in the National Aircraft Register and shall be regulated by the First Schedule and the law
governing its terms.
Cap. 16.
Cap. 13.
(2) Mortgages shall be recorded by the Director General in the order of time in which they are produced to him for that purpose,
and the Director General shall by m em orandum u nder his hand notify on each mortgage that it has been recorded by him, stating
the day and hour of that record.
(3) Where it is stated in the instrument of the mortgage that it is prohibited to create further mortgages on an aircraft without
the prior written consent of the mortgagee, the Director General shall make a note in the National Aircraft Register to such effect,
and the Director General shall not record such further mortgage unless the consent in writing of the holder of a prior mortgage is
produced to him, and any mortgage registered in violation of this provision shall be null and void:
Registration of mortgages.
favour of an existing creditor, no such consent shall be required from such creditor:
Provided further that nothing in this article shall hinder the regi strati on of a speci al priv ilege where this Act require s registration
for its continuing validity and effect.
(4) When it is stated in the instrument of mortgage that it is prohibited to effect the transfer of the aircraft which is being
mortgaged or charged, or of a share therein, without the previous written consent of the mortgagee, the Director General shall make
a note in the National Aircraft Registe r to s u ch effect, and the Director General, notwithstanding any other provision of this
Act, shall not record any transfer of such aircraft or of a share therein unless the consent in writing of such mortgagee is produced
to him, saving where the transfer is made pursuant to a court order in a sale by auction of such an aircraft or pursuant to any other
court order, and any transfer registered in violation of this provision shall be null and void.
(5) Where a creditor has registered an international interest in the International Registry in accordance with the First Schedule,
it shall be lawful for the debtor (being the registrant and, or the owner of the aircraft) to execute and file a prohibitory notice
in favour of on e or mo re cr ed it or s, i n th e form prescribed, whic h shall be entered in the National Aircraft Register by
the Director General.
(6) When a prohibitory notice is entered in the National Airc ra ft Re gister in acc orda nce with this article, the Director
Gen er a l shall not t h ereafter recor d any secur ity i n terest i n the National Aircraft Register in accordance with this Part,
until the prohibitory notice is withdrawn by the creditor.
Preservation of special privileges or reservation of title of aircraft on accessories of aircraft.
(a) the creation of any separate privilege or charge on an aircraft or on any part, appurtenance or accessory of an aircraft which
may attach in virtue of any law except for the privileges listed in article 42(1); or
(b) the reservation of ownership rights by a seller on an aircraft or on any part, appurtenance or accessory sold to a buyer under
a contract of sale, hire purchase or any similar contract;
(c) any lease:
Provided that provisions, fuel and other consumable goods shall not be considered as appurtenances:
Provided further that the provision of this article shall in no way prejudice or reduce the rights of any creditor enjoying a privilege
or reserving ownership rights in relation to any creditor other than the mortgagee.
(2) Subject to article 32, at any time prior to the registration of
a mortgage on an aircraft any creditor having a separate privilege or charge on any part, appurtenance or accessory of an aircraft
may register such privilege or charge in the register of the aircraft by means of an instrument executed by the owner in the presence
of a w itn ess i n t h e fo rm pr escribed , an d o n t h e pr odu ct ion of such instrument, the Director General shall by memorandum
under his hand notify on each charge that it has been recorded by him stating the day and hour of that record.
(3) Subject to article 32, a seller reserving ownership rights on an aircraft or on any part, appurtenance or accessory of an aircraft
or enjoying the benefit of any conditions affecting title thereto may register his interest in the register of the aircraft at any
time prior to the registration of a mortgage.
(4) A lessee having rights to an aircraft or any part, appurtenance or accessory of an aircraft may register
his interest in the register of the aircraft at any time prior to the registration of a mortgage.
(5) The registration of such a charge or reservation of ownership rights or of lessee rights prior to the registration
of a mortgage shall preserve the rights of the person referred to in the preceding subarticles, on the aircraft or that part, appurtenance
or accessory in relation to any subsequent mortgage.
(6) A reservation of ownership rights registered on an aircraft or a part, appurtenance or acc e ssory shall be ca ncelled upon
production by the owner of a receipt for the price and other charges relative to the transfer of an aircraft or such part, appurtenance
or a cces sory, and the Director Ge ne ral, upon production of s u c h receipt duly signed and attested to his satisfaction, shall
make an entr y i n the Nati onal Ai rcr a ft Re gister to the ef fect that the reservation of ownership rights has been cancelled.
(7) When a lease which is noted in the Register is terminated for any reason, the record thereof shall be removed by the Director
General upon production of such documents as may be prescribed which demonstrate such termination to his satisfaction.
(8) The transfer of the interest of any creditor enjoying a reservation of ownership or lessee rights registered in terms
of this article may, on the production of proof to the satisfaction of the Director General, be recorded by the Director General
who shall enter in the re gister the name of the tra n sferee and shall by memorandum under his hand notify on the instrument of
transfer that it has been recorded by him.
(2) Subject to the provisions of subarticle (3), after the effective date all mortgages registered in terms of this Part shall r a n k af ter an y int e rnati o n a l i n t e r e st , p r osp e ct iv e in ternat ion a l
Priority of mortgages.
International Registry on such aircraft or share therein irrespective of the date and time of registration in the international registry.
(3) A mortgage registered in terms of this Part or any law (which this Act substitutes) before the effective date shall
retain its priority over any international interest or prospective international interest as defined in the First Schedule which
may be registered in the International Registry on such aircraft or share therein.
Rights of mortgagee.
Cap. 426.
(a) be entitled to take possession of the aircraft or share therein in respect of which he is registered; but except so far as
may be necessary for making a secured aircraft or share available as a security for the secured debt, the mortgagee shall
not, by reason of the mortgage, be deemed to be the owner of the aircraft or share, nor shall the mortgagor be deemed
to have ceased to be the owner thereof;
(b) have power absolutely to sell the aircraft or share in respect of which he is registered; but where there are more persons
than one registered as mortgagees of the same aircraft or share, a subsequent mortgagee shall not, except under the order of a court
of competent jurisdiction, sell the aircraft or share without the concurrence of every prior mortgagee; and if the
proceeds of sale, after discharging the secured debt, show a surplus in his hands, the mortgagee shall hold under trust or deposit
the same for the benefit of other creditors and of the mortgagor debtor;
(c) have power to apply for any extensions, pay fees, receive certificates, and generally do all such things in the name of
the owner or registrant as may be required in order to maintain the status and validity of the registration of the aircraft;
(d) have the power to lease the aircraft so as to generate income therefrom; and
(e) have the power to receive any payment of the price, lease payments, and any other income which may be generated from the management
of the aircraft.
For the purposes of this subarticle, the requirement to give notice in writing to the debtor shall be considered to have been satisfied
if the mortgagee or holder of any security interest gives the notice to the debtor by means of an electronic communication in accordance
with the Electronic Commerce Act, or in such other manner as agreed between the parties, or if such notice is served at the registered office of the debtor, if the
registered address of the ow ner i s in Malt a, or on a curato r appo inted by th e court to
represent the debtor and the ai rcraft, and in the case of an
international registrant, on the resident agent in accordance with article 23(1)(g).
(2) The powers referred to in subarticle (1) may be exercised by the mortgagee without the need of the leave of any court and to
the extent that any mortgagee seeks the support of the court due to any hindrance of any person to the exercise of his rights, the
court shall render full support to the m o rtgagee as expeditiously as possible.
(3) The said powers shall be exercisable in accordance with the terms of any agreement governing the mortgage.
(4) A registered mortgage shall be an executive title for the pu rp ose s o f arti cl e 25 3 of t h e Co de of Organi zat i o n
an d Ci vi l Procedure:
(a) where the obligation it secures is a debt certain, liquidated and due; or
(b) where a maximum sum secured thereby is expressly stated in the instrument creating the security and such figure is recorded in
the register for public notice.
(5) The provisions of this article shall also apply to all reg i st er ed mo rt gag e s whi c h secu re deb t s re sult
in g fr o m any acc ount curre n t or overdraft or othe r credit fac i lity as we ll as mortgages which secure future debts.
(6) In connection with the enforcement of any mortgage, for the purpose of determining -
(a) the amount certain, liquidated and due, or
(b) the actual sum due when the mortgage secures a future debt within an expressly stated maximum,
in connection with the enforcement of the security involving the sale of an aircraft, the creditor shall specify the sum due at the
time of enforcement by means of a sworn affidavit notified or served on the debtor. This shall be without prejudice to the right
of the debtor to pay such sum in settlement of the amount due to the secured creditor, or the right of any interested party to contest
such amount according to law, even after payment of the sum claimed, but no person shall have the right to hinder the exercise of
the rights of the secured creditor in any manner.
(7) Any judicial proceedings to enforce a mortgage shall be carried out in accordance with the procedure described in article
187(4), (5) and (6) of t h e Cod e of Or ganizat ion and C i vil
Procedure, provided that in the case of an international registrant registered under Part III, service on the debtor shall be carried out by
serving a copy of the proceedings on the resident a g ent in
accordance with article 22(1)(c).
(8) Subject to article 43, the debtor and the person in possession of the aircraft shall be obliged to co-operate
fully with the mortgagee enforcing his rights under this article including, but no t limited to, surrenderi ng and submitting all
data, m a nuals, technical records, parts, accessories and appurtenances belonging to the aircraft.
Cap. 12.
Cap. 12.
the transferor in the presence of, and attested by, a witness or witnesses; and on the production of such instrument for registration
the Director General shall record it by entering in the register the name of the transferee as mortgagee, of the aircraft or share,
and shall by memorandum under his hand notify on the instrument of transfer that it has been recorded by him, stating the day and
hour of the record.
Cap. 16. (2) For the purposes of article 1471 of the Civil Code, registration of the instrument of transfer of a registered mortgage of an aircraft or share made by the Director General in the
National Aircraft Register in terms of the provisions of this article shall be deemed to constitute due notice of the assignment
of such mortgage to the debtor.
Assignment of part of a debt or other obligation.
(2) The provisions of article 34(2) shall be applicable mutatis mutandis to the assignments contemplated in subarticle (1).
Transmission of interest of mortgagee by death.
(2) On the receipt of the declaration and the production of the evidence aforesaid, the Director General shall enter the name of the person entitled upon the transmi ssion in the Nat i onal Ai rcraft Register as mortgagee in the aircraft or share therein.
Amendment of mortgage.
(2) Subject to the provisions of this article, an amendment of a mortgage may be effected for any purpose.
(3) Without prejudice to the generality of the foregoing, and subject always to the provisions of subarticles (4), (5) and (6),
an amendment of a mortgage shall be effected for any one or more of the following purposes:
(a) to increase the amount of capital secured by such mortgage. An agreement to vary -
(i) the interest payable, the modalities for the calculation of interest including any rate, indices, margin,
or market mechanism; or
(ii) the repayment schedule; or
(iii) the currency in which payment is to be made,
shall not be considered as an increase for the purposes of this article; and
(b) to extend such mortgage to secure any other obligation of the debtor, whether as principal or as surety for any other person,
in favour of the creditor, except where the new obligation qualifies as a future obligation of the mortgagor to the mortgagee
secured by the mortgage being within a maximum sum stated in the relative mortgage instrument and registered in the
National Aircraft Register.
(4) An amendment of a mortgage may not be effected after the obli g ati on secu red by t h e registered m o rtgag e has been
unconditionally discharged.
(5) Where any mortgages other than the one that it is intended to amend, are entered in the Na tional Aircraft Register of the
aircraft an amendment shall not be no ted unless the consent in w r it in g o f all t h e ot her m o rt gagees, wh ose in terests
may be prejudiced by the amendment, is produced to the Director General.
(6) The consent to an amendment to a mortgage shall be signified by means of a declaration executed by the creditor in
the presence of, and attested by, a witness or witnesses.
Entry of discharge of mortgage.
Transfers and mortgages not to have effect unless registered.
Loss of original mortgage deed.
the party making the request of a sworn declaration to the effect that the original has been lost.
(2) In such a case the Director General shall make a note in the National Aircraft Register that a reconstituted mortgage has been
issued, reciting at whose request such a reconstituted instrument has been issued.
(3) In case of loss of any original mortgage, the Director General may enter any transfer or discharg e of mo rtg age
if the mortgagee produces a sworn declaration that he is the holder of the mortgage, the instrum ent of which has been lost, and
that he is discharging or transferring the said mortgage in virtue of the sworn declaration.
(4) In such a case the Director General shall, on production of the said sworn declaration, treat such declaration as the mortgage
and shall follow the procedure specified in this Act for the transfer or discharge of the mortgage; the Director General shall make
a note in the National Aircraft Register that the transfer or discharge of the mortgage has taken place in virtue of a sworn declaration.
Recognition of foreign mortgages and foreign security interests.
(a) such mortgage has been validly recorded in the registry of aircraft or other register of the country under
whose laws the aircraft is documented;
(b) such registry is a public registry;
(c) such mortgage appears upon a search of such registry;
and
(d) such mortgage is granted a preferential and generally equivalent status as a mortgage under this Act under the laws of
the country where the mortgage is registered.
(2) An international interest registered in the International Registry in accordance with the First Schedule shall be recognized
and enforceable under the laws of Malta and shall have the status an d all righ ts and powers specified in t h e First Sch e d u
le wi th reference to a registered air c ra ft irrespective of whether it is recorded in the National Aircraft Register or not.
(3) Without prejudice to any default remedies as may be applicable by virtue of the First Schedule, the holder of a security
interest which is registered in accordance with the First Schedule sh al l, in the even t of defau lt o f an y term o r co ndi tion
of such security or of any document or agreement referred to therein, and upon giving notice in writing to the debtor -
(a) have power to terminate the agreement and take possession or control of the aircraft to which the agreement relates;
or
(b) apply to the court to authorise or direct either of these acts.
(4) A security interest which is registered in accordance with the First Schedule shall be an executive title for the purposes
of article 253 of the Code of Organization and Civil Procedure where:
(a) it secures the rights of a seller under a conditional sale with reservation of ownership rights; or
(b) it secures the rights of a lessor under a lease agreement.
(5) The powers referred to in subarticle (3)(a) may be exercised by the creditor without the leave of any court and to the extent
that any creditor seeks the support of the court due to any hindrance of any conditional buyer or lessee to the exercise of his
rights, the court shall render full support to the holder of the security interest as expeditiously as possible including by making
any declaration on the vesting of ownership or lessor rights or the termination of possessory rights to the aircraft.
(6) The provisions of -
(a) the last paragraph of article 33(1); and
(b) article 33(2), (7) and (8), with reference to the powers stated in subarticle (3) of this article and generally stated in the First Schedule
sh al l ap ply to t h e enfo rcemen t o f a securi ty in terest which is registered in accordance with the First Schedule.
(7) When the proper law of a conditional sale or a lease ag reement i s Malt ese law and the secu rity interest in relation
thereto is registered in accordance with the First Schedule, for the purposes of Maltese law, the owner and, or the lessor shall
enjoy the status and powers in relation to th e r e lev a n t air c raf t as is envisaged in terms of subarticles (3) to (6).
(8) A security interest shall be governed by the terms of the security agreement constituting such interest whether with reference
to a registered aircraft or otherwise. The existence or validity of the security interest, its construction and its effects shall
be governed by the proper law applicable to the security agreement and when executed and, or perfected in accordance with the proper
law, shall be recognised and given effect to in Malta in accordance with this article. Such interests shall be subject and subordinate
to the rights o f any regi st ered m o rt gagee or the ho lder of an international interest duly registered in accordance with the
First Schedule and shall be subject also to the terms of any inter-creditor agreement.
(9) A security interest shall operate for such time and under su ch cond iti ons as appl y un der the p r oper law gov ernin g
th e security agreement.
SPECIAL PRIVILEGES ON AIRCRAFT
Cap. 12.
Special privileges on aircraft.
proceeds, provided that this provision shall not apply in relation to an indemnity payable under a liability policy:
(a) judicial costs incurred in respect of the sale of the aircraft and the distribution of the proceeds thereof pursuant
to the enforcement of any mortgage or other executive title;
(b) fees and other charges due to the Director General arising under applicable law of Malta in respect of the aircraft;
(c) wages due to crew in respect of their employment on the aircraft;
(d) any debt due to the holder of a possessory lien for the repair, preservation of the aircraft to the extent of the service performed
on and value added to the aircraft;
(e) the expenses incurred for the repair, preservation of the aircraft to the extent of the service performed on and value added
to the aircraft; and
(f) wages and expenses for salvage in respect of the aircraft.
(2) The debts hereunder specified are secured by a special privilege upon the aircraft, as w e l l as an y pro c eeds f
r om any ind e mnit y ari s ing fr om an y mi shaps as well as an y insu ran c e pr oceeds, other than from a liability policy, if
regist ered in the International Registry after the effective date:
(a) taxes, duties and, or levies due to the Government of
Malta in respect of the aircraft; and
(b) wages and expenses for assistance or recovery in respect of the aircraft.
(3) The debts referred to in subarticle (2) shall constitute a special privilege and enjoy the preference and status of such right in relation to the aircraft only if the claim is created by the owner of the aircraft or a person authorised by him. When such a claim is created by an operator of the aircraft, it shall not affect the aircraft or the owner thereof, and shall only operate in relation to the said debt or and u pon th e termin at ion of his temp orary t itle and reversion of the aircraf t to th e owne r, the said cla i m shall be d i sso lve d w i t h reg a rd to th e aircr a ft which shall revert unencumbered to the owner. This article shall apply to a lessor in relation to a lessee, and a sub-lessor to a lessee in the same manner, subject to such modifications as are required due to the context.
(4) Upon the registration of such privileges in the register, the person registering the aircraft, its owner, o r operator shall
be notified of the registration by the registrant of the privilege.
(5) For the avoidance of doubt, the requirement for registration of the privilege for taxes, duties and levies due to the Government
of Malta in subarticle (2)(a) and the specific ranking position of such claim in article 44, shall apply and be binding with reference to such claims notwithstanding
the provisions of other special laws of Malta which may govern such claims.
(2) A possessory lien shall entitle the creditor to retain possession on the aircraft on which he has worked or carried
out activity until such creditor is paid the debts due to him for such building, repairs or activity.
(3) A possessory lien shall be extinguished by the voluntary release of the aircraft from the custody of the creditor.
(4) A possessory lien shall not be extinguished if the aircraft is released pursuant to a court order or following a judicial sale
of the aircraft. In the latter case the credito r shall en joy t h e priorit y specified in article 44(1) over the proceeds of sale
of the aircraft.
(5) The creditor shall be obliged to release the aircraft if he is paid the sum claimed, or adequate security is deposited in the
Civil Court, First Hall, under the provisions of the Code of Organization and Civil Procedure:
Provided that the creditor shall enjoy the same priority over such sum or security.
(6) For the purposes of this article, the creditor upon a demand by judicial letter served upon him by any person interested in
the aircr af t, shall be ob liged to d ecl are the amount of his claim by judicial act to be filed within a period of two days from
the date of notification to him of the aforesaid demand failing which he shall be obliged to release the aircraft forthwith.
Possessory lien or privilege.
Cap. 12.
(2) Any debt secured by a mortgage registered in the National Aircraft Register or a charge in the International Registry or secured
by a foreign mortgage recognised under this Act shall rank af ter the debt s secur e d b y po ssessory liens and, subje c t to subarticle
(5), special privileges on aircraft in terms of article 42(1) and in preference to other hypothecary and privileged claims.
(3) The debts secured by special privileges referred to in article
4 2 (2) shall, on regist r a tion i n the I n ternational Reg i stry, an d
subject to subarticle (5), rank after the debts referred to in article
42(1) but after all debts secured by mortgages and charges in the
International Registry registered prior to the date of the registration
of the relevant privilege.
(4) Where the fund is insufficient -
(a) competing creditors under the same heading of privileges in article 42(1) shall rank equally and shall
Ranking of creditors.
Cap. 16.
claim;
(b) registered special privileges referred to in article 42(2) and mortgages shall rank in order of date and time in accordance
with article 32(1), subject to the specific exceptions laid down in subarticles (2) and (3) of the same article;
(c) security interests governed by a foreign law and recognised in accordance with article 41 shall rank after the claims referred to in paragraphs (a) and (b); and
(d) general hypothecs and privileges, whether general or over particular movables, shall rank after the debts referred to
in paragraphs (a), (b) and (c), and shall rank among themselves according to the provisions of the Civil Code.
(5) The preference and rights of privileges listed in article
42(2 ) shal l arise o n ly in relation to the particular ti tle of an operator of an aircraft, whether being the owner or a person
under a
temporary title, and shall not bind any other party or encumber his assets.
IMPLEMENTATION OF THE CAPE TOWN CONVENTION
Interpretation. 45. (1) Words and expressions used in this Part have the same meaning as the corresponding words and expressions used in the Cape Town Convention and the Protocol as reproduced in the First Schedule.
(2) In interpreting the Cape Town Convention and the Aircraft Protocol and Implementing Law, a court or other interpreter may have recourse to the list of sources and materials listed in the Third Schedule as the same may be updated and supplemented from time to time, and such ot her te xt s as the cour t cons id ers relevant to interpreting the Cape Town Convention and the Protocol.
Cape Town Convention and Aircraft Protocol to have the force of law in Malta.
(2) Subject to subarticle (3), the Cape Town Convention and the Aircraft Protocol as reproduced by the Implementing Law shall have
the force of law in Malta in relation to matters to which they apply and shall prevail over any other law, in case of conflict.
(3) The provisions of the Cape Town Convention and the
Aircraft Protocol shall come into effect on the effective date.
RULES ON THE OPERATION OF SECURITY RIGHTS IN
AIRCRAFT WHEN GOVERNED BY TWO PARTS OF THIS ACT
Relevant court for the purposes of the Cape Town Convention and Aircraft Protocol.
Cape Town Convention and Aircraft Protocol to be judicially noticed.
Protection of operation of the International Registry.
Entitlement to registration.
Applicable Part.
Registration of international interest.
In case of conflict between two Parts.
Registered international interest to operate independently of the application of Part IV.
Prevalence of Part VI and the First Schedule.
MISCELLANEOUS
Powers to make regulations.
regulate the following matters:
(a) the registration of any aircraft, including matters relating to nationality and marking as well as eligibility
to register the same or to remain the registrant thereof and to establish rules applicable to cases where the ownership
is held by, or for the benefit of, more than one person;
(b) the registration of aircraft under construction;
(c) the conditions of any temporary title to an aircraft in the context of registration thereof;
(d) fractional ownership and all matters related thereto;
(e) forms, fees, declarations and undertakings and ancillary matters relating to registration of aircraft, mortgages
and other rights over aircraft or parts thereof;
(f) the registration of foreign law security interests in the register and the rules applicable thereto including forms, fees
and other matters;
(g) proceedings for damages;
(h) the classification of aircraft, nationality, and registration marks of aircraft registered in Malta;
(i) the operation of security granted to secure future debts;
(j) the regulation of agreements constituting security, other than mortgages, over or in relation to aircraft as well as
registration or enforcement thereof and ancillary matters relating thereto;
(k) the establishment, operation and expansion of aviation undertakings of any legal form or purpose by the introduction
of incentives, schemes and other facilitations;
(l) the recognition of rights in aircraft components;
(m) the introduction of penalties for non-observance of the provision of this Act;
(n) the definition of aircraft for the purposes of this Act and for the purposes of the applicability or interpretation
of any other law; and
(o) any other matter which may be further regulated for the better implementation of the provisions of this Act.
Segregated cells within aviation undertakings. Cap. 16.
57. (1) It shall be lawful for aviation undertakings having the legal fo rm of fou ndatio ns regi st ered in terms of t h e Seco nd
Sch e dul e of the Civ i l Co de to establish se gregated c e lls in accordance with the provisions of article 20 of the Second Schedule of the Civil Code.
(2) The Minister may, with the concurrence of the relevant Minister responsible for foundations, make regulations relating
to article 20 of the Second Schedule of the Civil Code to regulate:
(a) the mode of its applicability to aviation undertakings of the particular legal form; and
(b) all related and ancillary matters, including but not limited to the powers of the relevant Registrar, any requirements
for notification to such registrar or for registration in the relevant registry, applicable fees, forms, or otherwise.
Cap. 16.
(2) Any rules or regulations made pursuant to any provision of this Act shall be made in the Maltese language and in the English language; however where in ex ceptional ca ses the use of the Maltese language would be difficult due to technical terminology, su ch rul es o r r eg ulation s may b e made in the Engl ish langu age only.
Conflict between texts and language of the First Schedule and regulations.
(2) All registered mortgages that have been validly entered in the register before the entry into force of this Act shall continue
to b e valid and enforceabl e in terms of this Act and shall not be affected in any manner whatsoever by the entry into force of
this Act, or the repeal, or amendment, of any provision applicable to such mortgage prior to the coming into force of this Act.
(3) Any special privileges which may have arisen over the aircraft before the entry into force of this Act shall be governed
by the law in force until such date and shall not be affected by the coming into force of this Act.
Transitory provisions.
(a) the Immigration Act; and
(b) article 103 of the Merchant Shipping Act.
Application of
Laws.
Cap. 217. Cap. 234.
(Articles 2, 4, 26, 28, 29, 30, 31, 32, 33, 39, 45, 50, 52, 53, 54, 55 and 58)
THE IMPLEMENTING LAW IN RESPECT OF THE CAPE TOWN CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT AND THE
AIRCRAFT PROTOCOL THERETO
PREAMBLE
Civil Aviation, signed at Chicago on 7 December 1944,
Malta has promulgated the following implementing legislation ("this Schedule") relating to its accession to the Convention
on International Interest s in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment:
CHAPTER I
Sphere of application and general provisions
Article 1
Definitions
In this Schedule, references to "this Act" are references to the principal Act to which this Schedule is annexed and except
where the context otherwise requires, the following terms 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 the National Aircraft Registry or another register maintained by a State or common
mark registering authority for 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 associated rights
with or without a transfer of the related 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 25(3);
(j) "Cape Town Convention" means the Convention on International Interests in Mobile Equipment as modified
by the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment,
each concluded at Cape Town, South Africa on 16 November 2001;
(k) "Cape Town Convention State" means any State that is party to the Cape
Town Convention;
(l) "Chicago Convention" means the Convention on International Civil Aviation, signed at Chicago on 7 December 1944,
as amended, and its Annexes;
(m) "commencement of the insolvency proceedings" means the time at which the insolvency proceedings are deemed to
commence under the applicable insolvency law;
(n) "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;
(o) "conditional buyer" means a buyer under a title reservation agreement; (p) "conditional seller" means a seller under a title reservation agreement; (q) "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;
(r) "court" means a court of law or an administrative or arbitral tribunal
established by a Cape Town Convention State;
(s) "creditor" means a chargee under a security agreement, a conditional seller under a title reservation agreement or
a lessor under a leasing agreement;
(t) "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;
(u) "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;
(v) "guarantee contract" means a contract entered into by a person as guarantor;
(w) "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;
(x) "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;
(y) "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;
(z) "insolvency proceedings" means bankruptcy, liquidation or other 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;
(aa) "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 this Act is prevented or suspended
by law or State action;
(bb) "interested persons" means: (i) the debtor;
(ii) any guarantor;
(iii) any other person having rights in or on the aircraft object;
(cc) "international interest" means an interest held by a creditor to which
Article 2 applies;
(dd) "International Registry" means the international registration facilities established by the Cape Town Convention;
(ee) "leasing agreement" means an agreement by which one person (the lessor) grants a right to possession or control
of an aircraft object (with or without an option to purchase) to another person (the lessee) in return for a rental or other payment;
(ff) "National Aircraft Register" means the National Aircraft Register of
Malta;
(gg) "non-consensual right or interest" means a right or interest conferred under the law of a Cape Town Convention
State to secure the performance of an obligation, including an obligation to a State, State entity or an intergovernmental
or private organisation;
(hh) "pre-existing right or interest" means a right or interest of any kind in or on an aircraft object created or arising
before the effective date of this Schedule, as specified in Article 56 of this Schedule;
(ii) "primary insolvency jurisdiction" means the Cape Town Convention 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) "priority non-consensual right or interest" means a non-consensual right or interest conferred under the law of Malta
of the following types:
(i) judicial costs incurred in respect of the sale of the aircraft and the distribution of the proceeds thereof pursuant to the
enforcement of any mortgage or other executive title;
(ii) fees and other charges due to the Director General arising under applicable law of Malta in respect of the aircraft;
(iii) wages due to crew in respect of their employment on the aircraft;
(iv) any debt due to the holder of a possessory lien for the repair, preservation of the aircraft to the extent of the service
performed on and value added to the aircraft;
(v) the expenses incurred for the repair, preservation of the aircraft to the extent of the service performed on and value added
to the aircraft; and
(vi) wages and expenses for salvage in respect of the aircraft.
(kk) "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;
(ll) "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;
(mm)"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;
(nn) "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;
(oo) "registered" means registered in the International Registry under the
Cape Town Convention;
(pp) "registered interest" means an interest registered with the International
Registry pursuant to the Cape Town Convention;
(qq) "registrable non-consensual right or interest" means a non-consensual right or interest conferred under the law of Malta
of the following types:
(i) taxes, duties and/or levies due to the Government of Malta in respect of the aircraft;
(ii) wages and expenses for assistance or recovery in respect of the aircraft;
(rr) "Registrar" means the person or body serving as Registrar under the
Cape Town Convention;
(ss) "registry authority" means the Maltese Director General of Civil Aviation as the authority maintaining
a National Aircraft Register, which is responsible for the registration and de-registration of an aircraft in Malta
in accordance with the Chicago Convention;
(tt) "regulations" means regulations made or approved by the Supervisory
Authority pursuant to the Cape Town Convention;
(uu) "sale" means a transfer of ownership of an aircraft object pursuant to a contract of sale;
(vv) "secured obligation" means an obligation secured by a security interest; (ww) "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;
(xx) "security interest" means an interest created by a security agreement;
(yy) "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;
(zz) "Supervisory Authority" means the body acting as Supervisory
Authority under the Cape Town Convention;
(aaa) "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;
(bbb) "unregistered interest" means a consensual interest or non-consensual right or interest (other than a priority non-consensual
right or interest to the extent specified in Article 45(1)) which has not been registered, whether or not it is registrable under
the Cape Town Convention or this Act; and
(ccc) "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.
Article 2
The international interest
1. This Act provides for the constitution and effects of an international interest in aircraft objects and associated rights.
2. For the purposes of this Schedule, an international interest in aircraft objects i s an in t e r e st, co ns ti tu ted un
der Art i cl e 10, in ai rf rames, ai rcraf t engi nes 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. The applicable law determines whether an interest to which the preceding paragraph 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.
Article 3
Sphere of application
1. This Act applies when, at the time of the conclusion of the agreement creating or providing for the international
interest or a contract of sale, the debtor or seller, as applicable, is situated in a Cape Town Convention State.
2. The fact that the creditor or buyer is situated in a non-Cape Town
Convention State does not affect the applicability of this Act.
3. Without prejudice to paragraph 1 of this Article, this Schedule shall also apply in relation to a helicopter, or to an airframe
pertaining to an aircraft, registered in an aircraft register of a Cape Town Convention State which is the State of registry, and
where such registration is made pursuant to an agreement for registration of the aircraft it is deemed to have been effected at the
time of the agreement.
Article 4
Where debtor or seller is situated
1. For the purposes of Article 3(1), the debtor or seller is situated in any Cape
Town Convention State:
(a) under the laws 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 sub-paragraph (d) of the preceding paragraph 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.
Article 5
Interpretation and applicable law
1. In the interpretation of this Schedule, 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 Schedule which are not expressly settled in it are to be settled in
conformity with the general principles on whi c h i t is based or, in th e absence o f su ch princi ples, in conformit y w ith the
applicable law.
3. References to the applicable law are to the domestic rules of the law applicable by virtue of rules of private
international law of the forum State.
Article 6
Application to sale and prospective sale
In additi on to the specif ic provisions in this Schedule referr ing to sales and prospective sales, the general provisions of Article
1, Article 5, Chapters IV to VII, Article 35, Chapter X, Chapter XI (other than Article 48), Chapter XII and Chapter XIII shall apply
to contracts of sale and prospective sales.
Article 7
Representative capacities
A person may enter into an agreem ent or a sale, and register an international in te rest i n , or a sal e o f , an ai rc raft o b
j ect [or t a ke an y ot her a c ti on u n d e r t h i s Schedule], in an agency, trust or other representative capacity. In such
case, that person is entitled to assert rights and interests under this Schedule.
Article 8
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) and 11(1)(c) of this Schedule.
Article 9
Choice of law
Intentionally omitted in the light of the terms of Accession to the Convention and the Protocol by the European Union
CHAPTER II
Constitution of an international interest; contracts of sale
Article 10
Formal requirements
1. An interest is constituted as an international interest under this Schedule where the agreement creating or providing for
the interest:
(a) is in writing;
(b) relates to an aircraft object of which the chargor, conditional seller or lessor has power to dispose;
(c) enables the aircraft object to be identified; and
(d) in the case of a security agreement, enables the secured obligations to be determined, but without the need to state a sum or
maximum sum secured.
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.
Article 11
Formalities and effects of contracts of sale
1. For the purposes of this Act, a contract of sale is one which: (a) is in writing;
(b) relates to an aircraft object of which the seller has power to dispose; and
(c) enables the aircraft object to be identified in conformity with this
Schedule.
2. A contract of sale transfers the interest of the seller in the aircraft object to the buyer according to its terms.
CHAPTER III
Default remedies
Article 12
Remedies of chargee
1. In the event of default as provided in Article 17, the chargee may, to the extent that the chargor has at any time so agreed,
exercise any one or more of the following remedies:
(a) take possession or control of any aircraft object charged to it; (b) sell or grant a lease of any such aircraft object;
(c) collect or receive any income or profits arising from the management or use of any such aircraft object.
2. The chargee may alternatively apply for a court order authorising or directing any of the acts referred to in the
preceding paragraph.
3. A chargee proposing to sell or grant a lease of an aircraft object under paragraph 1 shall give reasonable prior notice
in writing of the proposed sale or lease to:
(a) interested persons specified in Article 1(bb)(i) and (ii); and
(b) interested persons specified in Article 1(bb)(iii) who have given notice of their rights to the chargee within a reasonable time prior to the sale or lease.
4. A chargee giving ten or more working days’ prior written notice of a propo sed sale or lease to int e rest ed
pe rsons shall be d e em ed to satisfy the r e q u irement of pro v id ing "reason a b l e pri o r not ice" specifi ed
in th e preced i ng paragraph. The foregoing shall not prevent a chargee and a chargor or a guarantor from agreeing to a longer period
of prior notice.
5. Any sum collected or received by the chargee as a result of exercise of any of the remedies set out in paragraph 1 or 2 shall
be applied towards discharge of the amount of the secured obligations.
6. Where the sums collected or received by the chargee as a result of the exercise of any remedy set out in paragraph
1 or 2 exceed the amount secured by the security interest and any reas onable cost s incu rred in the exercise of any su ch remedy,
then unless otherwise ordered by the court the chargee shall distribute the surplus among holders of subsequently ranking interests
which have been registered
or of which the chargee has been given notice, in order of priority, and pay any remaining balance to the chargor.
Article 13
Vesting of aircraft object in satisfaction; redemption
1. At any time after default as provided in Article 17, the chargee and all the interested persons may agree that ownership of
(or any other interest of the chargor in) any aircraft object covered by the security interest shall vest in the chargee in or towards
satisfaction of the secured obligations.
2. The court may on the application of the chargee order that ownership of (or any other interest of the ch arg or in) a ny aircraft
object covered by the security interest shall vest in the chargee in or towards satisfaction of the secured obligations.
3. The court shall grant an application under the preceding paragraph only if th e am ou nt of t h e secured obl ig ati ons to
be sati sfie d b y su ch vest ing i s commens ur ate with the value of the aircraft ob ject afte r taki ng account of an y payment
to be made by the chargee to any of the interested persons.
4. At any time after default as provided in Article 17 and before sale of the charged aircraft object or the making of an order
under paragraph 2, the chargor or any interested person may discharg e the se curity interest by paying in full the amount secured,
subject to any lease granted by the chargee under Article 12(1)(b) or ordered under Article 12(2). Where, after such default, the
payment of the amount secured is made in full by an interested person other than the debtor, that person is subrogated to the rights
of the chargee.
5. Ownership or any other interest of the chargor passing on a sale under Article 12(1)(b) or passing under paragraph
1 or 2 of this Article is free from any other interest over which the chargee’s security interest has priority under the provisions
of Article 35.
Article 14
Remedies of conditional seller or lessor
In t he even t of d efault under a title reservation agreement or under a l easing agreement as provided in Article 17, the conditional
seller or the lessor, as the case may be, may:
(a) terminate the agreement and take possession or control of any aircraft object to which the agreement relates; or
(b) apply for a court order authorising or directing either of these acts.
Article 15
Additional remedies of creditor
1. In addition to the remedies specified in Articles 12, 14, 16 and 20, the cr edi to r may, t o th e ex ten t tha t
the de btor has at any time so a greed and in the circumstances specified in such provisions:
(a) procure the de-registration of the aircraft; and
(b) procure the export and physical transfer of the aircraft object from the territory in which it is situated.
2. The creditor shall not exercise the remedies specified in the preceding paragraph without the prior consent in writing
of the holder of any registered interest ranking in priority to that of the creditor.
3. The registry authority shall, subject to any applicable safety laws and
regulations, honour a request for de-registration and export if:
(a) the request is properly submitted by the authorised party under a recorded irrevocable de-registration and export request
authorisation; and
(b) the authorised party certifies to the registry authority, if required by that authority, that all registered interests ranking
in priority to that of the creditor in whose favour the authorisation has been issued have been discharged or that the holders
of such interests have consented to the de- registration and export.
4. A chargee proposing to procure the deregistration and export of an aircraft under paragraph 1 otherwise than pursuant to a
court order shall give reasonable prior notice in writing of the proposed deregistration and export to:
(a) interested persons specified in Article 1(bb)(i) and (ii); and
(b) interested persons specified in Article 1(bb)(iii) who have given notice of their rights to the chargee within a reasonable time prior to the deregistration and export.
Article 16
Additional remedies under applicable law
Any additional remedies permitted by the applicable law, including any remedies agree d up on b y t h e p a rti e s, ma y be ex er
cised to the extent that they are not inconsistent with the mandatory provisions of this Chapter as set out in Article 22.
Article 17
Meaning of default
1. The debtor and the creditor may at any time agree in writing as to the events that constitute a default or otherwise give
rise to the rights and remedies specified in Articles 12 to 15 and 20.
2. Where the debtor and the creditor have not so agreed, "default" for the purposes of Articles 12 to 15 and
20 means a default which substantially deprives the creditor of what it is entitled to expect under the agreement.
Article 18
Debtor provisions
1. In the absence of a default within the meaning of Article 17, the debtor shall be entitled to the quiet possession and use
of the aircraft object in accordance with the agreement as against:
(a) its creditor and the holder of any interest from which the debtor takes free pursuant to Article 35(5) or, in the capacity of
buyer, Article 35(3), unless and to the extent that the debtor has otherwise agreed; and
(b) the holder of any interest to which the debtor ’s right or interest is subject pursuant to Article 35(5) or, in
the capacity of buyer, Article
35(4), but only to the extent, if any, that such holder has agreed.
2. Nothing in this Schedule affects the liability of a creditor for any breach of the agreement under th e applicable law in
so far as that agreement relates to an aircraft object.
Article 19
Standard for exercising remedies
Any remedy giv en by this Sch edu le in re latio n to an air cr af t object shall be exercised in a commercially reasonable manner.
A remedy shall be deemed to be exercised in a commercially reasonable manner where it is exercised in conformity with a prov is ion
of the ag re ement exce pt wh ere such a prov ision is manifestly unreasonable.
Article 20
Relief pending final determination
1. A creditor who adduces evidence of default by the debtor shall, pending final determination of its claim and to the extent
that the debtor has at any time so agreed, be entitled to obtain from a court speedy relief in the form of such one or more of the
following orders as the creditor requests:
(a) preservation of the aircraft object and its value;
(b) possession, control or custody of the aircraft object; (c) immobilisation of the aircraft object;
(d) lease or, except where covered by sub-paragraphs (a) to (c), management of the aircraft object and the income therefrom; and
(e) if at any time the debtor and the creditor specifically agree, sale and application of proceeds therefrom.
2. For the purposes of the preceding paragraph, "speedy" in the context of obtaining relief means, in respect of the
relief specified in Article 20(1)(a)-(c), the number of working days equivalent to no more than ten (10) calendar days, and in respect of the relief specified in Article
20(1)(d)-(e), the number of working days equivalent to no more than thirty (30) calendar days, in each case from the date the application for
relief is filed.
3. Ownership or any other interest of the debtor passing on a sale under sub- paragraph (e) of paragraph 1 of this Article is free from any other interest over which the creditor ’s international interest has priority
under the provisions of Article 35 of this Schedule.
4. In making any order under paragraph 1 of this Article, the court may impose such terms as it considers necessary to protect
the interested persons in the event that the creditor:
(a) in implementing any order granting such relief, fails to perform any of its obligations to the debtor under this Act; or
(b) fails to establish its claim, wholly or in part, on the final determination of that claim.
5. The creditor and the debtor or any other interested person may agree in writing to exclude the application of the preceding
paragraph.
6. Before making any order under paragraph 1, the court may require notice of the request to be given to any of the interested
persons.
7. With regard to the remedies in Article 15(1):
(a) they shall be made available by the registry authority and other administrative authorities, as applicable, in
no later than five (5) working days after the creditor notifies such authorities that the relief specified in Article 15(1)
is granted or, in the case of relief granted by a
foreign court, recognised by a Maltese court, and that the creditor is entitled to procure those remedies in accordance with this
Schedule; and
(b) the applicable authorities shall expeditiously co-operate with and assist the creditor in the exercise of such remedies in conformity
with the applicable aviation safety laws and regulations.
8. Nothing in the preceding paragraphs affects the application of Article 19 or limits the availability of forms of interim relief
other than those set out in paragraph
1.
9. Paragraphs 2 and 7 shall not affect any applicable aviation safety laws and regulations.
Article 21
Procedural requirements; Non-Judicial Remedies
1. Subject to paragraph 2, any remedy provided by this Chapter shall be exercised in conformity with the procedure
prescribed by the law of the place where the remedy is to be exercised.
2. Any remedy available to the creditor under any provision of this Schedule which is not there expressed to require application
to the court may be exercised without court action and without leave of the court.
Article 22
Derogation
Any two or more of the parties referred to in this Chapter may at any time, by agreement in writing, exclude the application of Article
23 and, in their relations with each other, derogate from or vary the effect of any of the preceding provisions of this Chapter,
except as stated in Articles 12(3) to (6), 13(3) and (4), 15(2), 19 and
21.
Article 23
Remedies on insolvency
1. This Article applies to all insolvency proceedings where Malta is the primary insolvency jurisdiction.
2. Upon the occurrence of an insolvency-related event, the insolvency adm i ni strator o r t h e debt or, as ap
pli cabl e , shall , subj ect to paragrap h 7, gi ve possession of the aircraft object to the creditor no later than the earlier
of:
(a) the end of the waiting period; and
(b) the date on which the creditor would be entitled to possession of the aircraft object if this Article did not apply.
3. For the purposes of this Article, the "waiting period" shall be the period of thirty (30) calendar days commencing
on the date of the insolvency-related event.
4. References in this Article to the "insolvency administrator" shall be to that person in its official, not in its
personal, capacity.
5. Unless and until the creditor is given the opportunity to take possession under paragraph 2:
(a) the insolvency administrator or the debtor, as applicable, shall preserve the aircraft object and maintain it and its value in
accordance with the agreement; and
(b) the creditor shall be entitled to apply for any other forms of interim
relief available under the applicable law.
6. Sub-paragraph (a) of the preceding paragraph shall not preclude the use of the aircraft object under arrangements designed to preserve the aircraft
object and maintain it and its value.
7. The insolvency administrator or the debtor, as applicable, may retain possession of the aircraft object where, by
the time specified in paragraph 2, it has cured all defaults other than a default constituted by the opening of insolvency proceedings
and has agreed to perform all future obligations under the agreement. A second waiting period shall not apply in respect of a default
in the performance of such future obligations.
8. With regard to the remedies in Article 15(1):
(a) they shall be made available by the registry authority and the administrative authorities, as applicable, no
later than five working days after the date on which the creditor notifies such authorities that it is entitled to procure those
remedies in accordance with this Schedule; and
(b) the applicable authorities shall expeditiously co-operate with and assist the creditor in the exercise of such remedies in conformity
with the applicable aviation safety laws and regulations.
9. No exercise of remedies permitted by this Schedule may be prevented or delayed after the date specified in paragraph 2.
10. No obligations of the debtor under the agreement may be modified without the consent of the creditor.
11. Nothing in the preceding paragraph shall be construed to affect the authority, if any, of the insolvency ad min ist
r at or u n d e r t h e applicable law to terminate the agreement.
12. No rights or interests, except for a priority non-consensual right or interest to the extent specified in Article 45(1), shall
have priority in insolvency proceedings over registered interests.
13. The provisions of this Schedule shall apply to the exercise of any remedies under this Article.
Article 24
Insolvency assistance
1. This Article applies where Malta is not the primary insolvency jurisdiction.
2. Where an aircraft object is situated in Malta its courts shall, in accordance with the laws of Malta, co-operate to the maximum
extent possible with foreign courts and foreign insolvency administrators in carrying out the provisions of Article
23.
Article 25
De-registration and export request authorization
1. This Article applies where an airframe pertaining to an aircraft, or a helicopter, is registered in the National
Aircraft Register.
2. Where the debtor has issued an irrevocable de-registration and export requ est au th orisa ti on su bst ant ial ly
in t he fo rm in t he Seco nd Sch ed ul e an d ha s submi tted such auth orisation for record at ion t o the r e gistry au thori
t y, that authorisation shall be so recorded.
3. The person in whose favour the authorization has been issued (the
"aut horized par ty") or its certif ied designee shall be the sole p er so n entitled to exercise the remedies specified
in Article 15(1) and may do so only in accordance with the authorization and applicable aviation safety laws and regulations. Such
authorisation may not be revoked by the debtor without the consent in writing of the authorized party. The registry authority shall
remove an authorization from the registry at the request of the authorized party.
4. The registry authority and other administrative authorities shall expeditiously co-operate with and assist
the authorized party in the exercise of the remedies specified in Article 15.
CHAPTER IV
Registrations in the international registration system
Article 26
Means and Effect of Registration
1. Registration in the International Registry under the Cape Town Convention is the only means of establishing the priority of
a right or interest in an aircraft object, such priority being determined in accordance with Article 35, except only in respect of
a priority non-consensual right or interest, whose priority is determined in accordance with Article 45(1).
2. Only those registrations with the International Registry permitted by the Cape Town Convention and complying with the regulations
and this Act shall, when made, be valid for purposes of determining priority. Such permitted registrations are:
(a) international interests, prospective international interests and registrable non-consensual rights and interests;
(b) assignments and prospective assignments of international interests;
(c) acquisitions of international interests by legal or contractual subrogations under the applicable law;
(d) "notices of a national interest", as defined in the Cape Town Convention, under the laws
of a Cape Town Convention State permitting such notice through a declaration thereunder made by that State, Malta not
having made such a declaration;
(e) subordinations of interests referred to in any of the preceding sub- paragraphs; and
(f) sales and prospective sales.
3. All information required for the registrations referred to in the previous paragraph in relation to a helicopter, or to
an airframe pertaining to an aircraft, registered for nationality purposes in the National Aircraft Register may only be transmitted
directly to the International Registry, not through any designated entry point.
4. Omitted intentionally.
5. For the purposes of this Chapter and Chapter V, the term "registration" includes, where appropriate, an
amendment, extension or discharge of a registration.
CHAPTER V
Modalities of registration
Article 27
Validity and time of registration
1. A registration shall be valid only if made in conformity with Article 28.
2. A registration, if valid, shall be complete upon entry of the required information into the International Registry
database so as to be searchable.
3. A registration shall be searchable for the purposes of the preceding paragraph at the time when:
(a) the International Registry has assigned to it a sequentially ordered file number; and
(b) the registration information, including the file number, is stored in durable form and may be accessed at the International
Registry.
4. If an interest first registered as a prospective international interest or p r o s pect iv e sal e b e co mes an
in ter n at io na l in ter e st or a sal e , r e spect iv ely, th at int e rnati onal i n terest or sale sh al l be treated as registered
from the time of registration of the prospective international interest or prospective sale provided that the registration was still
current immediately before the international interest or contract of sale was constituted as provided by Article 10 or 11.
5. The preceding paragraph applies with necessary modifications to the registration of a prospective assignment of an
international interest.
6. A registration pertaining to an aircraft object shall be searchable in the Inte rnational Registry data base according
to the na me of it s manu factur er, its manufacturer ’s serial number and its model designation, as further specified in the regulations.
Article 28
Consent to registration
1. An international interest, a prospective international interest, an assignment or prospective assignment of an international
interest, or a contract of sale or a prospective sale may be registered, and any such registration extended prior to its expiry (except
in respect of a contract of sale) or amended, by either party with the consent in writing of the other.
2. The subordination of an international interest to another international interest may be registered by or with the
consent in writing at any time of the person whose interest has been subordinated.
3. A registration may be discharged by or with the consent in writing of the party in whose favour it was made.
4. The acquisition of an international interest by legal or contractual subrogation may be registered by the
subrogee.
5. A registrable non-consensual right or interest may be registered by the holder thereof.
Article 29
Duration of registration
1. Registration of an international interest remains effective until discharged or until expiry of the period specified in the
registration.
2. Registration of a contract of sale remains effective indefinitely. Registration of a prospective sale remains effective unless
discharged or un til exp iry o f t he period, if any, specified in the registration.
Article 30
Searches
1. Any person may, in the manner prescribed by this Act and the regulations, make or re quest a se arch of the Inte rn at ion
a l R e gis t ry b y el ec tr oni c me an s concerning interests or prospective interests international registered therein.
2. Any person may request and receive from the Registrar, in the manner prescribed by the regulations, a registry
search certificate by electronic means with respect to any aircraft object:
(a) stating all registered information relating thereto, together with a statement indicating the date and time
of registration of such information; or
(b) stating that there is no information in the International Registry relating thereto.
3. A search certificate issued under the preceding paragraph shall indicate that the creditor named in the registration information
has acquired or intends to acquire an i n t e r n at io nal in terest i n th e ob ject b u t shal l no t in di cat e wheth e r what
i s registered is an international interest or a prospective international interest, even if this is ascertainable from the relevant
registration information.
Article 31
Evidentiary value of certificates
A document in the form prescribed by the regulations which purports to be a certificate issued by the International Registry is prima facie proof
(a) that it has been so issued; and
(b) of the facts recited in it, including the date and time of a registration.
Article 32
Discharge of registration
1. Where the obligations secured by a registered security interest or the obligations giving rise to a registered non-consensual
right or interest have been disch arg ed, o r where t h e conditio ns of tr ansf er of title und er a registered t itle reservation
agreement have been fulfilled, the holder of such interest shall, without undue delay, procure the discharge of the registration
after written demand by the debtor delivered to or received at its address stated in the registration.
2. Where a prospective international interest, a prospective assignment of an i n tern at ion a l in terest , or a pro s pect
ive sale has b e en reg i stered, t h e in tend ing creditor, intending assignee, or intending buyer shall, without undue delay,
procure the discharg e of the registration after written demand by th e intending debtor, assignor or sell er which is delivered
t o or recei v ed at it s add r ess stated in the regi st rati on b efore th e int endi ng credit or, assig nee or bu yer has gi
ven v alue o r incurred a commitment to give value.
3. For the purpose of the preceding paragraph and in the circumstances there described, the holder of a registered prospective
international interest or a registered prospective assignment of an international interest or the person in whose favour a prospective
sale has been registered shall take such steps as are within its power to procure the discharge of the registration no later than
five working days after the
receipt of the demand described in such paragraph.
4. Where a registration ought not to have been made or is incorrect, the person in whose favour the registration was made shall,
without undue delay, procure its discharge or amendment after written demand by the debtor [or seller] to or received at its address
stated in the registration.
CHAPTER VI
Recognition of certain privileges and immunities of the
Supervisory Authority and the Registrar
Article 33
Legal personality; immunity
As a matter of law Malta recognises that:
(a) the Supervisory Authority has international legal personality;
(b) the Supervisory Authority and its officers and employees shall enjoy such immunity from legal and administrative process as
is provided under the rules applicable to them as an international entity or otherwise;
(c) the assets, documents, databases and archives of the International Registry shall be inviolable and immune from seizure
or other legal or administrative process;
(d) for the purposes of any claim against the Registrar under Article 34(1) or Article 49, the claimant shall be entitled
to access to such information and documents as are necessary to enable the claimant to pursue its claim; and
(e) the Supervisory Authority may waive the inviolability and immunity conferred by paragraph (c) of this Article.
CHAPTER VII
Recognition of Liability of the Registrar
Article 34
Standard and extent of liability
1. As a matter of law Malta recognises that the Registrar shall be liable for compensatory damages for loss suffered by a person
directly resulting from an error or omission of the Registrar and its officers and employees or from a malfunction of the international
registration system except where the malfunction is caused by an event of an inevitable and irresistible nature, which could not
be prevented by using the best practices in current us e in th e field of electronic regist ry design and operation, including those
related to back-up and systems security and networking.
2. The Registrar shall not be liable under the preceding paragraph for factual inaccuracy of registration information received
by the Registrar or transmitted by the Regist rar in th e fo rm in wh ich it r e ceived that i n formati o n nor for acts or circums
t ances for whic h the Registrar and its officers and employees are not respon sibl e and arisin g p r ior to receip t o f regi st
ration in formati on at th e International Registry.
3. Compensation under paragraph 1 may be reduced to the extent that the person who suffered the damage caused or contributed
to that damage.
CHAPTER VIII
Effects of an international interest as against third parties
Article 35
Priority of competing interests
1. A registered interest has priority over any other interest subsequently registered and over an unregistered interest.
2. The priority of the first-mentioned interest under the preceding paragraph applies:
(a) even if the first-mentioned interest was acquired or registered with actual knowledge of the other interest; and
(b) even as regards value given by the holder of the first-mentioned interest with such knowledge.
3. A buyer of an aircraft object under a registered sale acquires its interest in that object free from an interest subsequently
registered and from an unregistered interest, even if the buyer has actual knowledge of the unregistered interest.
4. A buyer of an aircraft object under a registered sale acquires its interest in that object subject to an interest previously
registered.
5. A conditional buyer or lessee acquires its interest in or right over that object: (a) subject to an interest registered prior to the registration of the
international interest held by its conditional seller or lessor; and
(b) free from an interest not so registered at that time even if it has actual knowledge of that interest.
6. The priority of competing interests or rights under this Article may be varied by agreem en t between th e holders o f tho
s e in terest s, but an assign ee o f a subordinated interest is not bound by an agreement to subordinate that interest unless at
the time of the assignment a subordination had been registered relating to that agreement.
7. Any priority given by this Article to an interest in an aircraft object extends to proceeds.
8. This Schedule -
(a) does not affect the rights of a person in an item, other than an aircraft object, held prior to its installation on an aircraft
object if under the applicable law those rights continue to exist after the installation; and
(b) does not prevent the creation of rights in an item, other than an aircraft object, which has previously been installed on an aircraft
object where under the applicable law those rights are created.
9. Ownership of or another right or interest in an aircraft engine shall not be affected by its installation on or removal from
an aircraft.
10. Paragraph 8 of this Article applies to an item, other than an aircraft object, installed on an airframe, aircraft engine or
helicopter.
Article 36
Effects of insolvency
1. In insolvency proceedings against the debtor or seller an international inter est or sale, as app licabl e, is eff
ectiv e if pr ior to the comm encem ent of the
insolvency proceedings that interest or sale was registered in conformity with this
Schedule.
2. Nothing in this Article impairs the effectiveness of an international interest or sale in the insolvency proceedings where
that interest is effective under the applicable law.
3. Nothing in this Article affects any rules of law applicable in insolvency proceedings relating to the avoidance of a transaction
as a preference or a transfer in fraud of creditors or, except as provided in Article 23, any ru l e s of pr o cedu r e relating
to the enforcement of rights to prop erty which is under the control or supervision of the insolvency administrator.
CHAPTER IX
Assignments of associated rights and international interests;
rights of subrogation
Article 37
Effects of assignment
1. Except as otherwise agreed by the parties, an assignment of associated rights made in conformity with Article 38 also transfers
to the assignee:
(a) the related international interest; and
(b) all the interests and priorities of the assignor under this Schedule.
2. Nothing in this Schedule prevents a partial assignment of the assignor ’s associated rights. In the case of such a partial
assignment the assignor and assignee may agree as to their respective rights concerning the related international interest assigned
under the preceding paragraph but not so as adversely to affect the debtor without its consent.
3. Subject to paragraph 4, the applicable law shall determine the defences and rights of set-off available to the debtor against
the assignee.
4. The debtor may at any time by agreement in writing waive all or any of the defences and rights of set-off referred to in the
preceding paragraph other than defences arising from fraudulent acts on the part of the assignee.
5. In the case of an assignment by way of security, the assigned associated rights re-vest in the assignor, to the extent that
they are still subsisting, when the obligations secured by the assignment have been discharged.
Article 38
Formal requirements of assignment
1. An assignment of associated rights transfers the related international interest only if it:
(a) is in writing;
(b) enables the associated rights to be identified under the contract from which they arise; and
(c) in the case of an assignment by way of security, enables the obligations secured by the assignment to be determined in accordance
with this Schedule but without the need to state a sum or maximum sum secured.
2. An assignment of an international interest created or provided for by a security agreement is not valid unless some
or all related associated rights are also assigned.
3. This Schedule does not apply to an assignment of associated rights which is not effective to transfer the related international
interest.
Article 39
Debtor ’s duty to assignee
1. To the extent that associated rights and the related international interest have been transferred in accordance with Articles
37 and 38, the debtor in relation to those rights and that interest is bound by the assignment and has a duty to make payment or
give other performance to the assignee, if but only if:
(a) the debtor has been given notice of the assignment in writing by or with the authority of the assignor;
(b) the notice identifies the associated rights; and
(c) the debtor has consented in writing, whether or not the consent is given in advance of the assignment or identifies the assignee.
2. Irrespective of any other ground on which payment or performance by the debtor discharges the latter from liability, payment
or performance shall be effective for this purpose if made in accordance with the preceding paragraph.
3. Nothing in this Article shall affect the priority of competing assignments.
Article 40
Default remedies in respect of assignment by way of security
In the event of default by the assignor under the assignment of associated rights and the related international interest made by way
of security, Articles 12, 13 and 15 to 21 apply in the relations between the assignor and the assignee (and, in relation to associated
rights, apply in so far as those provisions are capable of application to intangible property) as if references:
(a) to the secured obligation and the security interest were references to the obligation secured by the assignment of the associated
rights and the related international interest and the security interest created by that assignment;
(b) to the chargee or creditor and chargor or debtor were references to the assignee and assignor;
(c) to the holder of the international interest were references to the assignee; and
(d) to the aircraft object were references to the assigned associated rights and the related international interest.
Article 41
Priority of competing assignments
1. Where there are competing assignments of associated rights and at least one of the assignments includes the related international
interest and is registered, the pro vi si on s of Arti cle 3 5 appl y as if th e references to a registered interest were references
to an assignment of the asso ciated rights and the related regis t ered interest and as if references to a registered or unregistered
interest were references to a registered or unregistered assignment.
2. Article 36 applies to an assignment of associated rights as if the references to an international interest were references
to an assignment of the associated rights and the related international interest.
Article 42
Assignee’s priority with respect to associated rights
1. The assignee of associated rights and the related international interest whose assignment has been registered only has priority
under Article 41(1) over another assignee of the associated rights:
(a) if the contract under which the associated rights arise states that they are secured by or associated with the object; and
(b) to the extent that the associated rights are related to an aircraft object.
2. For the purpose of sub-paragraph (b) of the preceding paragraph, associated rights are related to an aircraft object only to the extent that they consist of rights to
payment or performance that relate to:
(a) a sum advanced and utilised for the purchase of the aircraft object;
(b) a sum advanced and utilised for the purchase of another aircraft object in which the assignor held another international interest
if the assignor transferred that interest to the assignee and the assignment has been registered;
(c) the price payable for the aircraft object;
(d) the rentals payable in respect of the aircraft object; or
(e) other obligations arising from a transaction referred to in any of the preceding sub-paragraphs.
3. In all other cases, the priority of the competing assignments of the associated rights shall be determined by the
applicable law.
Article 43
Effects of assignor ’s insolvency
The provisions of Article 36 apply to insolvency proceedings against the assignor as if references to the debtor were references to
the assignor.
Article 44
Subrogation
1. Subject to paragraph 2, nothing in this Schedule affects the acquisition of associated rights and th e related intern a tional
interest by legal or contractu a l subrogation under the applicable law.
2. The priority between any interest within the preceding paragraph and a competing interest may be varied by agreement
in writing between the holders of the respective interests but an assignee of a subordinated interest is not bound by an agreement
to su bord i nate th at int e r e st u n less at th e t ime of the assi gnment a subordination had been registered relating to that
agreement.
CHAPTER X
Non-consensual right or interest
Article 45
Priority non-consensual right or interest
A priority non-consensual right or interest, to the extent it had priority over an interest in an aircraft object equivalent to that
of the holder of a registered international interest prior to the effective date, shall retain that priority over a reg istered int
ernat ional in terest hereun der, whether in or outside of insolvency
proceedings.
Article 46
Registrable non-consensual right or interest
A registrable non-consensual right or interest relating to any aircraft object may be registered under this Schedule as if the right
or interest were an international interest and shall be regulated accordingly.
CHAPTER XI Jurisdiction Article 47
Choice of forum
1. Subject to Articles 48 or 49, the courts of a Cape Town Convention State chosen by the pa rties to a transaction have jurisdiction
in respect of any claim brought under this Schedule, whether or not the chosen forum has a connection with the parties or the transaction.
Such jurisdiction shall be exclusive unless otherwise agreed between the parties.
2. Any such agreement shall be in writing or otherwise concluded in accordance with the formal requirements of the
law of the chosen forum.
Article 48
Jurisdiction under Article 20
1. The courts of a Cape Town Convention State chosen by the parties in conformity with Article 47 and the courts
of the Cape Town Convention State on the territory of which the aircraft object is situated or in which the aircraft is registered
have jurisdiction to grant relief under Article 20(1)(a), (b), (c), and Article 20(8) in respect of that aircraft object or aircraft.
2. Jurisdiction to grant relief under Article 20(1)(d) and (e) or other interim relief by virtue of Article 20(8) may be exercised either:
(a) by the courts chosen by the parties; or
(b) by the courts of a Cape Town Convention State on the territory of which the debtor is situated, being relief which, by the terms
of the order granting it, is enforceable only in the territory of that State.
3. A court has jurisdiction under the preceding paragraphs even if the final determination of the claim referred to in Article
20(1) will or may take place in a court of another Cape Town Convention State or by arbitration.
Article 49
Jurisdiction to make orders against the Registrar
1. The courts of the place in which the Registrar has its centre of administration shall have exclusive
jurisdiction to award damages or make orders against the Registrar.
2. Where a person fails to respond to a demand made under Article 32 and that person has ceased to exist or cannot be found for
the purpose of enabling an order to be made against it requiring it to procure discharge of the registration, the courts referred
to in the precedin g paragraph shall have exclusive jurisdiction, on the application of the debtor or intending debtor, to make an
order directed to the Registrar requiring the Registrar to discharge the registration.
3. Where a person fails to comply with an order of a court having jurisdiction
under these Rules, the courts referred to in paragraph 1 may direct the Registrar to take such steps as will give effect to that order.
4. Except as otherwise provided by the preceding paragraphs, no court may make orders or give judgments or rulings against or
purporting to bind the Registrar.
Article 50
Waivers of sovereign immunity
1. Subject to paragraph 2, a waiver of sovereign immunity from jurisdiction of the courts specified in Article 47 or 48 or relating
to enforcement of rights and interests relating to an aircraft object under this Schedule shall be binding and, if the other conditions
to such jurisdiction or enforcement have been satisfied, shall be effective to confer jurisdiction and permit enforcement, as the
case may be.
2. A waiver under the preceding paragraph must be in writing and contain a description of the aircraft object.
Article 51
Jurisdiction in respect of insolvency proceedings
The provisions of this Chapter are not applicable to insolvency proceedings.
Article 52 to Article 55 have been intentionally omitted as they are not applicable to Malta.
CHAPTER XII Final Provisions
Article 56
Effective date of this Schedule
This Schedule shall take effect on the effective date. The "effective date" is first day of the month following the expiration
of three months after the date on which Malta deposits its instrument of accession to the Cape Town Convention with the depositary
therefor.
Article 57
Transitional provisions
1. This Schedule does not apply to a pre-existing right or interest, which retains the priority it enjoyed under the
applicable law before the effective date of this Schedule.
2. Nothing in the preceding paragraph or otherwise in this Schedule shall prevent parties to an agreement and related
documents, by affirmative act, from re- constituting a pre-existing right or interest as an international interest and otherwise
bringing it within the scope of this Act.
3. A priority non-consensual right or interest shall retain its priority over an international interest, to the extent specified
in Article 45(1), which is registered prior to the effective date.
SECOND SCHEDULE
(Article 25 of the First Schedule)
Form of Irrevocable De-Registration and Export Request Authorisation
Annex referred to in Article 25 of the First Schedule relating to the accession by Malta of The Convention on International Interests
in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment
{Insert Date}
To: National Aircraft Register
Re: Irrevocable De-Registration and Export Request Authorisation
The undersigned is the registered [operator] [owne r] of the [insert the airframe/ helicopter manufacturer name and model number] bearing manufacturer ’s serial number [ insert manufacturer ’s seri al num ber ] and registr a tion [ nu m b er ] [ ma rk ] [ insert re gi strati on numbe r/ mark ] (tog ether w ith all in stalled, incorporate d or attach ed accessories, parts and equipment, the "aircraft").
This instrument is an irrevocable de-registration a nd export request authorisation issued by the undersigned in favour of [insert name of creditor] (the "authorised party") under the authority of (1) Article 25 of the Schedule relating to the ratification by Malta of th e Conv ention on Inte rnat ional Interests in Mobi le Equipmen t and the Protocol thereto on Matters Specific to Aircraft Equipment (the latter instrument, the "Protocol"), and (2) Article XIII of the Protocol. In accordance with these Articles, the undersigned hereby requests:
(a) recognition that the authorised party or the person it certifies as its designee is the sole person entitled to:
(i) procure the de-registration of the aircraft from the National Aircraft Register maintained by the national registry authority for the purposes of Chapter III of the Convention on International Civil Aviation, signed at Chicago, on 7 December 1944; and
(ii) procure the export and physical transfer of the aircraft from Malta; And
(b) confirmation that the authorised party or the person it certifies as its designee may take the action specified in clause (a) above on written demand without the consent of the undersigned and that, upon such demand, the authorities in Malta 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 National Aircraft Register.
[insert name of operator/owner]
--------------------------------------- Agreed to and lodged this
[insert date]
By: [insert name of signatory] Its: [insert title of signatory]
THIRD SCHEDULE (Article 45)
List of Sources and Materials to be used by Court
(i) The Official Commentary by Professor Sir Roy Goode that was prepared in response to Resolution No. 5 of the Diplomatic
Conference;
(ii) Resolution No. 2 of the Diplomatic Conference, relating to the establishment of the Supervisory Authority
and the International Registry for aircraft objects;
(iii) Resolution No. 3 of the Diplomatic Conference, pursuant to Article
2(3)(b) and (c) of the Convention;
(iv) Resolution No. 4 of the Diplomatic Conference, relating to technical assistance with regard to the implementation and
the use of the International Registry;
(iv) Materials, papers, commentaries and any guidelines issued by the International Institute for the Unification
of Private Law ("UNIDROIT").
FOURTH SCHEDULE
Col. 1
(Article 16) Part A
Col. 2 Col. 3 Col. 4
Aircraft
Lighter
than a i r
aircraft
Heavier
than a i r
aircraft
Non- me chanical ly driven
Mec h anically driven
Non- me chanical ly
{
Free Balloon
Captive Balloon
Airship
Glider
Kite
Aeroplane (Landplane) Aeroplane (Seaplane)
Aeroplane
( A mp hi bi an
Aeroplane
machines)
Mec h anically
d r iven (flying -
Part B
(Self-launching
motor glider)
Gyroplane
Helicopter
Nationality and Registration Marks of Aircraft Registered in Malta
1. The nationality marks of the aircraft shall be the number 9 followed by the capital letter "H" in roman character
and the registration mark shall be a group of three capital letters in Roman character assigned by the Director General on the registration
of the aircraft. The letters shall be without ornamentation and the hyphen shall be placed between the nationality mark and the registration
mark.
2. The nationality and registration mark shall be painted on the aircraft or shall be affixed thereto by any other means ensuring
a similar degree of permanence in the following manner:
I. Position of Marks
(a) Flying machines and Gliders
(i) Wings: Except on aircraft having no fixed wing surface, the marks shall appear on the lower surface of the wing structure,
and shall be on the left half of the lower surface of the wing structure unless they extend across the whole surface of
both wings. So far as possible the marks shall be located equidistant from the leading and trailing edges of the wings. The tops
of the letters shall be towards the leading edge of the wing.
(ii) Fuselage (or equivalent structure) or Vertical Tail Surface: The marks shall also be either on each side of the
fuselage (or equivalent structure) between the wings and the tail surfaces, or on the upper halves of the vertical tail surfaces.
When on a single vertical tail surface they shall be on both sides of the tail. When
there is more than one vertical tail surface, the marks shall appear on the outboard sides of the outer tails.
(b) Airships and Balloons
(i) Airships: The marks shall be on each side of the airship and also on the upper surface on the line of symmetry. They
shall be placed lengthwise near the maximum cross-section of the airship.
(ii) Spherical Balloons: The marks shall be in two places diametrically opposite. They shall be placed near the
maximum horizontal circumference of the balloon.
(iii) Non-Spherical Balloons: The marks shall be on each side. They shall be placed near the maximum cross-section of the balloon
immediately above either the rigging band or the points of attachment of the basket suspension cables.
(iv) In the case of all airships and balloons the side marks shall be so placed as to be visible both from the sides and from the
ground.
II. Size of Marks
(a) Flying Machines and Gliders
(i) Wings: The letters constituting each group of marks shall be of equal height. The height of the letters shall be
at least 50 centimetres.
(ii) Fuselage (or equivalent structure) or Vertical Tail Surfaces: The marks on the fuselage (or equivalent structure) shall not
interfere with the visible outlines of the fuselage (or equivalent structure). The marks on the vertical tail surfaces shall be such
as to leave a margin of at least 5 centimetres along each side of the vertical tail surface. The letters constituting each group
shall be of equal height. The height of the marks shall be at least 30 centimetres.
Provided that where owing to the structure of the aircraft a height of 30 centimetres is not reasonably practicable, the height shall
be the greatest height reasonably practicable in the circumstances, but not less than 15 centimetres.
(b) Airships and Balloons
The letters constituting each group of marks shall be of equal height. The height of the letters shall be at least 75 centimetres.
III. Width and Spacing of Marks
(a) The width of each letter (except the letter I) and the length of the hyphen between the nationality mark and
registration mark shall be two-thirds of the height of a letter.
(b) The letters and hyphen shall be formed by solid lines and shall be of a colour clearly contrasting with the background on which
they appear. The thickness of the lines shall be one-sixth of the height of a letter.
(c) Each letter shall be separated from the letter which it immediately precedes or follows by a space equal to half the
width of a letter. A hyphen shall be regarded as a letter for this purpose.
3. The nationality and registration marks shall be displayed to the best advantage taking into consideration the constructional
features of the aircraft and shall always be kept clean and visible.
4. In addition to the foregoing requirements of this Schedule the nationality
and registration marks shall also be inscribed, together with the name and address of the registered owner of the aircraft, on a fireproof
metal plate affixed in a prominent position to the fuselage or car or basket, as the case may be, and near the m ain entrance to
the aircraft.
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