As you may be aware, the International Registry was created pursuant to The Convention on International Interests in Mobile Equipment, together with the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, both of which concluded in Cape Town, South Africa, on November 16, 2001 (the “Cape Town Convention”). The International Registry reflects the priority of certain interests (including the sale, security interests, and leases, to name a few) in qualifying aircraft airframes and engines. When the creditor’s interest is terminated or released, the registration is discharged.
In 2010, the Regulations and Procedures for the International Registry were revised, so that an assignor of an interest can transfer the right to discharge the interest to an assignee of the interest. However, the assignment of the right to discharge must be made as a separate registration; it does not automatically follow an assignment of the underlying interest.
The transfer can be initiated by the assignor/transferor or the assignee/transferee, and the non-initiating party must consent to the request to transfer the right to discharge within 36 hours of the request, otherwise, the pending transfer will drop off the International Registry and the transfer will need to be reinitiated. The transfer of a right to discharge can be made as part of a ‘registration session’ at no additional cost, or separately at the then-prevailing rate. Once a right to discharge has been transferred, a notation will be made on the aircraft object’s priority search certificate below the interest that is the subject of such transfer. The notation will reflect the date and time the right to discharge transfer was completed, the name of the transferor and the name of the transferee.
For more information, please contact Scott Burgess (954-763-5565, extension 208 / email: scottb@aviationlegalgroup.com).