The Cayman Islands government has been preparing for the
extension of the Convention on International Interests in Mobile
Equipment and the Protocol (the
"Protocol") to the Convention on
International Interests in Mobile Equipment on matters specific to
aircraft equipment (which was concluded at Cape Town, South Africa
on 16 November 2001) (together the
"Convention") to the Cayman Islands.
Accordingly, the Cayman Islands government has recently passed
the International Interests In Mobile Equipment (Cape Town
Convention) Law, 2015 which will only come into force once the
Convention has been extended to the Cayman Islands. The purpose of
this legislation is to implement local legislation that would give
effect to the Convention once it is extended to the Cayman Islands.
Other legislation which has been passed in preparation for the
extension of the Convention to the Cayman Islands are the Bills of
Sale (Amendment) Law, 2015, the Civil Aviation Authority
(Amendment) Law, 2015 and Mortgaging of Aircraft Regulations,
The ratification of the Convention by the UK is expected to take
place imminently and with the Cayman Islands having now passed the
necessary domestic legislation, we are in a position to have the
Convention extended to the Cayman Islands as soon as possible
The extension of the Convention to the Cayman Islands will
entitle the Cayman Islands to international recognition as a
territorial unit of a contracting state to the Convention and to
recognition of the declarations deposited by the UK government on
behalf of the Cayman Islands government with the International
Institute for the Unification of Private Law acting as depository
pursuant to Article 62(1) of the Convention and Article XXXVII(1)
of the Protocol - UNIDROIT.
As extended to the Cayman Islands, the Convention will meet the
requirements for the Cayman Islands to have made qualifying
declarations as defined in the OECD Aircraft Sector
The Existing Regime of Registration of Security Interests in
the Cayman Islands
The consequence of the extension of the Convention to the Cayman
Islands is not to do away with the existing regime of the
registration of security interests locally, because there will be
circumstances where it cannot be used (for example, where the owner
of an aircraft is located in a non-contracting state or the
aircraft does not meet the weight qualifications to fall within the
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.
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