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Wednesday, April 21, 2010

Convention on International Security Interests in Mobile Equipment (Aircraft etc)

The Cape Town Convention or Treaty, as it is commonly known, took effect in 2006.

‘The treaty creates an international system of perfecting security interests in aircraft and simplified and stronger methods of enforcing the rights created by such interests. It was created to engender more certainty for lenders which will, in turn, lower the costs of financing for the purchase and lease of aircraft.’

The European Community ratified the convention in April 2009. The convention was due to enter into force throughout the European Community (with the exception of Denmark) on 1 Aug 2009.

Below is a link to a good introductory article explaining the Cape Town Treaty:
http://www.aviationtaxlawyer.com/pub_docs/Article-CapeTownTreaty.pdf

Official site for the Treaty:
http://www.unidroit.org/english/conventions/mobile-equipment/main.htm

List of countries that have ratified the Convention:
http://www.unidroit.org/english/implement/i-2001-convention.pdf

Editor: These notes kindly supplied by honorary GCMG member SN