The Cape Town Treat and International Registry of Mobile Assets went into effect March 1, 2006. The Cape Town Treaty modified existing law and created new law. It created an International Registry ("IR") by establishing "international interests" with respect to specified financing instruments that affect designated classes of aircraft called "aircraft objects."
The perfection of the international interests and determination of priority of the international interests is accomplished through registration with the International Registry via the internet, which has replaced FAA filing as priority perfection. Under U.S. law, the entity to register their international interest with the International Registry first will prevail over subsequently registered and unregistered international interests. Under U.S. law, documents must be filed with the FAA to maintain validity of Cape Town registration on U.S. registered aircraft.
Anyone who may become an Owner, Lender, Lessor, Lessee, Seller, Purchaser of an aircraft object or who may become an assignee or subrogee of an international interest or almost anyone else who may be involved in a transaction involving an aircraft object and an international interest should be concerned with Cape Town. This is the case even though all of the parties to the transaction are U.S. citizens and the aircraft may have never left the U.S. nor will it ever leave the U.S. Cape Town applies because of the nature of the equipment and not whether the transaction is domestic or international.
You must determine that your transaction meets the qualifications set forth in the Cape Town Treaty: 1) At least one party to the transaction must be situated in a contracting state and 2) The equipment must be large enough to be deemed an "aircraft object" by the International Registry.
As of September 7, 2011, there are 49 contracting states which include: Afghanistan, Albania, Angola, Bangladesh, Belarus, Cameroon, Cape Verde, China, Colombia, Costa Rica (effective 12/1/2011), Cuba, Ethiopia, European Community, Fiji (effective 1/1/2012), Gabon, India, Indonesia, Ireland, Jordan, Kazakhstan, Kenya, Latvia, Luxembourg, Malaysia, Malta, Mexico, Mongolia, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Russian Federation, Rwanda, Saudi Arabia, Senegal, Seychelles, Singapore, South Africa, Syrian Arab Republic, Tajikistan, Tanzania, Togo, Turkey, United Arab Emirates, United States of America, and Zimbabwe.
According to the Cape Town Treaty, an "aircraft object" must fit into at least one of these four categories:
- An aircraft that is type certified to transport at least eight (8) persons including crew; or goods in excess of 2750 kilograms (6050 pounds)
- A helicopter that is type certified to transport at least five (5) persons including crew; or goods in excess of 450 kilograms (990 pounds)
- A jet propulsion aircraft engine with at least 1750 pounds of thrust or its equivalent.
- A turbine-powered or piston-powered aircraft engine with at least 550 rated take-off horsepower or its equivalent.
The Cape Town Treaty excludes propellers, avionics, and other parts and accessories from coverage.
If your transaction involves a Cape Town Treaty-designated aircraft object, then your transaction will involve international interests. This is true even if all of the parties to the transaction are U.S. citizens and the aircraft will never leave the United States. The Cape Town Treaty applies because of the nature of the equipment, not because the transaction is domestic or international.
Under the Cape Town Treaty, the International Registry of Mobile Assets, presently located in Ireland, is the responsible entity for the perfection of international interests and the determination of priority of international interests. Thus the International Registry has replaced FAA filing as priority perfection. The entity to register their international interest first will prevail over subsequently registered interests and unregistered international interests. The U.S. declared that pre-existing perfected liens already filed with the FAA are grandfathered into the International Registry, so there is no requirement to re-file with the International Registry. Unlike an FAA filing, all transactions filed at the International Registry are filed electronically over the Internet.
Anyone who may become an Owner, Lender, Lessor, Lessee, Seller, or purchaser of an aircraft object, or who may become an assignee or subrogee of an international interest or almost anyone else who maybe involved in an aircraft transaction involving an international interest should be aware of the Cape Town Treaty requirements.
If your transaction does not involve a Cape Town Treaty-designated aircraft object, then we will simply file your documentation with the FAA.
Aero-Space Reports provides the complete scope of services necessary to ensure full compliance of an aircraft transaction with the Cape Town Treaty.
International Registry Priority Search
Our professional staff will use their expertise to verify that the International Registry's description of the aircraft object(s) matches the FAA's description. If it does not, our staff will convert the description to match the International Registry's record in order to ensure the search is being performed on the correct object. The search will show the make, model and serial number of the aircraft object as well as list the details of any registered interest(s) and their priority status. It is important to search the International Registry as well as the FAA as registrations on file with the International Registry are the priority interest over interests filed with the FAA.
Registering Interests with the International Registry
Upon filing your documents with the FAA, our staff will obtain an authorization code for filing with the International Registry. We will verify that the aircraft description is the accurate description for International Registry registrations. We will submit a request to the International Registry to act on behalf of all parties involved. Once approved by all parties, we will access the International Registry and register your interest(s) on your behalf. After the International Registry confirms registration, upon your request we will perform a Priority Search which confirms the registration and its priority status.
International Registry Administrator Service
If you elect to use our International Registry Administrator Service, we will enroll your entity with the International Registry and act as your entity's International Registry administrator. This allows us to create registrations, grant and deny authorizations and consent or decline International Registry registrations on your behalf. By allowing us to act as your International Registry administrator, we will be able to handle all of your International Registry needs. You will never have to log in to the International Registry.
Click Here to view our presentation over the Cape Town Treaty and International Registry of Mobile Assets
Click Here to contact Aero-Space Reports regarding the International Registry.
Cape Town Eligible Aircraft (Adobe PDF download)
List of Engines by Horsepower Rating or Thrust (Adobe PDF download)
International Registry of Mobile Assets
