Effective November 2015, the Cayman Islands adopted the Cape Town Convention and the related Protocol (together, the Convention) through the coming into force of the International Interests In Mobile Equipment (Cape Town Convention) Law, 2015 (Law).
As a result, the Cayman Islands is entitled to recognition as a territorial unit of a state that is a party to the Convention (Contracting State) via declarations deposited by the United Kingdom on behalf of itself and the Cayman Islands with the International Institute for the Unification of Private Law – UNIDROIT. The Convention is an international legal framework (recognised in all Contracting States) that operates independently of domestic laws. It enables interested parties to protect and recover their assets with greater certainty and ease. The Convention's adoption by the Cayman Islands will allow affected Cayman companies, owners of Cayman-registered aircraft and their lenders to protect their financial interests in any relevant aircraft assets in accordance with the Convention by way of registration of that interest on the international registry (IR).
In accordance with the Convention, an international interest may be registered on the IR if either (a) the aircraft is in a registered Contracting State or (b) the debtor is situated in a Contracting State. Therefore, the interests of a Cayman Islands entity under applicable transaction documentation or a Cayman registered aircraft can be registered as an international interest on the IR.
Appleby provides comprehensive advice and transactional support on aircraft finance transactions from the Cayman perspective and has extensive experience with aircraft registrations, finance and related matters. As a member of the Cape Town Convention Working Group, Appleby has been involved in all matters concerning the implementation of the Convention and ancillary legislative matters and continues to work closely with the Government. We can also recommend and work closely with preferred specialised Cape Town service providers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.