Aircraft Mortgage Agreement

Proper planning and initial diligence are important in establishing and determining the ownership of the aircraft. Private planes and charter flights are usually registered in individual names or under the name of an ad hoc vehicle (SPV) or free zones. Laws differ considerably in different legal systems when it comes to property, as described above. In India, for example, it is unlikely that the registration of these aircraft will be accepted under an off-balance sheet vehicle such as the Overseas VPS. Similarly, the U.S. Federal Aviation Administration registers and hangars aircraft on behalf of U.S. individuals or companies. Non-U.S. owners are required to appoint a trust company, and such trust will retain ownership of aircraft and aircraft on behalf of these foreign owners. In the case of an effective lease, the lessor must be designated as the owner in the FAA register and registered. This article is structured to reflect the thoughts that the promoter of the aircraft must advise and take into account when structuring the aeronautical mortgage business: it is in your interest to register an aircraft mortgage. The mortgage must be sent to the CAA with copies of mortgage documents (listed below).

Details of new aircraft mortgages are provided to the CAA using form CA1577 Entry of Aircraft Mortgages. The 1944 Chicago Convention on International Civil Aviation (the Convention) deals with the registration of civilian aircraft (and non-state aircraft). The United Arab Emirates acceded to the convention on April 25, 1972 and South Sudan is the youngest participant since October 11, 2011. In 2013, the President of the ICAO Council invited Taiwan to participate in the 38th ICAO Assembly, but Taiwan has not yet formally acceded to the agreement. Article 18 of the convention prohibits aircraft from being registered in more than one state and, furthermore, Article 19 stipulates that the registration of aircraft in a state complies with the laws and regulations of that state. In the United Arab Emirates, the UAE General Civil Aviation Authority (GCCA) issues the Civil Aviation Advisory Public (CAAP) in a timely manner, containing guidelines on aircraft registry requirements.