The ratification by the United Kingdom Government of the Convention on International Interests in Mobile Equipment and the Protocol thereto on matters specific to Aircraft Equipment (the Cape Town Convention) and its extension to the Cayman Islands has been well publicised (see our June 2015 legal update and our August 2015 legal update).
The Cape Town Convention will come into force in the UK on 1 November 2015. We are pleased to announce that on 1 November 2105 the Cayman Islands will gain the status of a territorial unit of a Convention State with the benefit of the declarations made on its behalf by the United Kingdom and will implement the Cape Town Convention in the Cayman Islands through its own domestic legislation, the International Interests in Mobile Equipment (Cape Town Convention) Law, 2015 providing creditors in aircraft finance transactions with the rights and remedies available under the Cape Town Convention.
Training wheels off…
Harneys is part of a working group formed by the Cayman Islands Government and the Cayman Islands Civil Aviation Authority to discuss the practical application of the Cape Town Convention and mechanics of its implementation and will continue to support the Government in this respect.
Changes to local legislation
We have set out below a summary of the key enabling legislation and dates.
|Legislation||Effect||Date gazetted||Date brought into force|
|Civil Aviation Authority (Amendment) Law 2015||Bestows on the CAA the right to create and maintain a domestic mortgage register and make regulations||29 April 2015||6 May 2015|
|International Interests in Mobile Equipment (Cape Town Convention) Law, 2015||Implements the Cape Town Convention in CaymanGives effect to the Declarations
Repeals and replaces Domestic Cape Town Law
|29 April 2015||1 November 2015|
|Mortgaging of Aircraft Regulations 1979 (Revocation) Regulations 2015||Repeals the Mortgaging of Aircraft Regulations 1979 (disempowering the Governor from governing local registrations)||6 May 2015||1 November 2015|
|Mortgaging of Aircraft Regulations 2015||Takes into account the registration of international interests on the International Registry and defers to the Cape Town Convention to determine matters of priority||6 May 2015||1 November 2015|
|Bills of Sale (Amendment) Law 2015||Extends the Bills of Sale Act (2000 Revision) to aircraft objects as defined in the Protocol to the Cape Town Convention||29 April 2015||1 November 2015|