Understanding the Role of the International Registry of Mobile Assets in Aircraft Transactions
The aviation industry is a global marketplace that demands meticulous attention to detail when it comes to the transfer of assets. One crucial aspect of any aircraft transaction is the recording and recognition of the legal rights of parties involved, be it the buyer, seller, or financier. Ensuring that the interests of all parties are legally protected and recognized internationally is of paramount importance. This is where the International Registry of Mobile Assets comes into play.
What is the International Registry of Mobile Assets?
The International Registry of Mobile Assets is a web-based registry system that facilitates the electronic recording of international interests in aircraft equipment. It was established under the Cape Town Convention on International Interests in Mobile Equipment and the Protocol on Matters specific to Aircraft Equipment, which came into effect on March 1, 2006. The Registry is operated by Aviareto Limited, a joint venture between SITA SC (a global aviation communications and IT solutions provider) and the Irish Government.
Purpose of the International Registry
The primary purpose of the International Registry is to provide a standardized international legal framework for the recognition and protection of the rights of creditors, lessors, and buyers in aircraft transactions. Specifically, the International Registry serves the following purposes:
1. Public Record: It acts as a public record of legal rights and interests in aircraft objects, allowing parties involved in a transaction to confirm the existence or absence of prior interests that may affect their rights.
2. Protection of Interests: It provides a way for parties to protect their interests in aircraft equipment by registering them internationally. This is particularly important in cases where the aircraft may be located or registered in a country different from that of the parties involved in the transaction.
3. Priority of Interests: It establishes the priority of registered interests, helping to resolve conflicts that may arise between parties claiming competing interests in the same aircraft equipment.
4. Legal Recognition: It ensures that registered interests are legally recognized and enforceable in all Contracting States to the Cape Town Convention.
How Does It Work?
The International Registry operates as an online system, accessible 24/7, for the registration of international interests in aircraft objects. Here are the key steps involved in using the International Registry:
1. User Registration: Parties wishing to use the International Registry must first register as an authorized user. This involves providing necessary identification and contact information.
2. Entity Registration: After becoming an authorized user, the party must then register the entity (e.g., corporation, partnership, etc.) on whose behalf they are acting.
3. Aircraft Object Registration: Once the entity is registered, the authorized user can then register interests in specific aircraft objects. This involves providing details of the aircraft object (e.g., manufacturer, model, serial number) and the nature of the interest (e.g., ownership, lease, security interest).
4. Consent:*Before an interest can be registered, the party whose rights are being registered must give consent. This is usually done electronically through the International Registry’s online system.
5. Search: Parties can also use the International Registry to search for existing interests in specific aircraft objects. This is crucial for parties considering acquiring an interest in an aircraft object, as it allows them to confirm the existence or absence of prior interests that may affect their rights.
The International Registry of Mobile Assets plays a critical role in the global aviation industry by providing a standardized legal framework for the recognition and protection of interests in aircraft transactions. By utilizing the International Registry, parties involved in aircraft transactions can secure their interests, ensure legal recognition and enforceability of their rights, and confirm the existence or absence of prior interests that may affect their rights. This ultimately leads to increased certainty, efficiency, and security in the global aviation marketplace. At TSH Aviation, we understand the complexities of the International Registry and its vital role in aircraft transactions. We are dedicated to supporting our clients and anyone else who may need assistance with any inquiries or concerns related to the International Registry, thereby guaranteeing a seamless and secure transaction for everyone involved.