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ATT TAL-2010 DWAR IR-REĀISTRAZZJONI TA’ INĀENJI TAL-AJRU ARRANĀAMENT TAL-ATT Artikoli Preliminari u Āenerali

68 Articles / Provisions · Malta
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Table of Provisions (68)

Preambolu Art. 1 Short title and commencement. First Schedule Art. 2 Interpretation. Second Schedule Art. 3 Third Schedule Art. 4 National Aircraft Register. Fourth Schedule Art. 5 Registrants of aircraft to be operators of aircraft. Fifth Schedule Art. 6 Art. 7 Conditions of eligibility to joint or fractional ownership. Art. 8 Art. 9 Art. 10 Certificate of Registration. Art. 11 Obligation of the registrant to notify the Director General of certain events. Art. 12 Art. 13 Art. 14 Art. 15 Inspection of the National Aircraft Register. Art. 16 Nationality and registration marks. Art. 17 Fees. Art. 18 International registrants’ eligibility to register aircraft. Art. 19 International registrant. Art. 20 Art. 21 Art. 22 Functions of the resident agent. Art. 23 Powers of resident agent. Art. 24 Art. 25 Aircraft as security for debts. Art. 26 Types of charges on aircraft. Art. 27 Art. 28 Attachment and extinguishment of charges and other rights. Art. 29 Art. 30 Registration of mortgages. Art. 31 Art. 32 Art. 33 Art. 34 Art. 35 Assignment of part of a debt or other obligation. Art. 36 Transmission of interest of mortgagee by death. Art. 37 Amendment of mortgage. Art. 38 Art. 39 Transfers and mortgages not to have effect unless registered. Art. 40 Loss of original mortgage deed. Art. 41 Recognition of foreign mortgages and foreign security interests. Art. 42 Special privileges on aircraft. Art. 43 Possessory lien or privilege. Art. 44 Ranking of creditors. Art. 45 Art. 46 Cape Town Convention and Aircraft Protocol to have the force of law in Malta. Art. 47 Relevant court for the purposes of the Cape Town Convention and Aircraft Protocol. Art. 48 Cape Town Convention and Aircraft Protocol to be judicially noticed. Art. 49 Protection of operation of the International Registry. Art. 50 Entitlement to registration. Art. 51 Applicable Part. Art. 52 Art. 53 Art. 54 Art. 55 Art. 56 Art. 57 Segregated cells within aviation undertakings. Art. 58 Art. 59 Art. 60 Art. 61 Consequential amendments. Art. 62 Reprint.

Statutory Text (68 Articles)

Gazzetta tal-Gvern ta' Malta — Att 2010 8 — ATT TAL-2010 DWAR IR-REĀISTRAZZJONI TA’ INĀENJI TAL-AJRU ARRANĀAMENT TAL-ATT Artikoli Preliminari u Āenerali
Preambolu — ATT TAL-2010 DWAR IR-REĀISTRAZZJONI TA’ INĀENJI TAL-AJRU ARRANĀAMENT TAL-ATT Artikoli Preliminari u Āenerali Open official source

ATT TAL-2010 DWAR IR-REĀISTRAZZJONI

TA’ INĀENJI TAL-AJRU

ARRANĀAMENT TAL-ATT

Artikoli

Preliminari u Āenerali

1 - 2

Reāistrazzjoni ta’ Ināenji tal-Ajru

3 - 17

Reāistrant Internazzjonali

18 - 24

Mortgages fuq Ināenji tal-Ajru

25 - 41

Privileāāi Speëjali fuq Ināenji tal-Ajru

42 - 44

Implimentazzjoni tal-Konvenzjoni ta’ Cape Town

45 - 49

Regoli fuq l-Operat tad-Drittijiet ta’ Garanzija fl-Ināenji tal-

50 - 55

Ajru regolati minn śewā Taqsimiet ta’ dan l-Att

Mixxellanji

56 - 62

SKEDI

Il-Liāi ta’ Implimentazzjoni fir-rigward tal-Konvenzjoni ta’ Cape Town

dwar il-Garanziji Internazzjonali fuq Tagħmir Mobbli u l-Protokoll dwar l-

Ināenji tal-Ajru li jinsab magħha

Il-kamp ta’ applikazzjoni u disposizzjonijiet āenerali

1 - 9

L-għamla ta’ garanzija internazzjonali; kuntratti ta’ bejgħ

10 - 11

Rimedji għal nuqqasijiet

12 - 25

Reāistrazzjonijiet fis-sistema ta’ reāistrazzjoni internazzjonali

Modalitajiet ta’ reāistrazzjoni

26 - 32

Għarfien ta’ ëerti privileāāi u immunitajiet tal-Awtorità li

Tissorvelja u tar-Reāistratur

Għarfien tar-responsabbiltà tar-Reāistratur

Effetti ta’ garanzija internazzjonali kontra terzi

35 - 36

êessjoni ta’ drittijiet assoëjati u garanziji internazzjonali; 37 - 44

drittijiet ta’ surroga

Dritt jew garanzija mhux konsenswali

45 - 46

Āurisdizzjoni

47 - 51

R elazzjo n i m a’ Ko nv en zjo ni jiet o ħ r a (m ħo ll ija ba r ra 52 - 55

intenzjonalment)

Disposizzjonijiet Finali

56 - 57

Formula ta’ Tneħħija ta’ Reāistrazzjoni Irrevokabbli u Awtorizzazzjoni ta’

Talba għal Esportazzjoni

Elenku ta’ Għejjun u Materjal li għandhom jintuŜaw mill-Qorti

Taqsima A: Tabella tal-Klassifikazzjoni Āenerali ta’ Ināenji tal-Ajru

Taqsima B: Marki Nazzjonali ta’ Reāistrazzjoni ta’ Ināenji tal-Ajru

Reāistrati f’Malta

Emendi ta’ Liāijiet

Nag]ti l-kunsens tieg]i.

G EORGE A BELA

(L.S.)

President

22 ta’ {unju, 2010

ATT Nru. VIII tal-2010

ATT biex jirregola r-reāistrazzjoni ta’ ināenji tal-ajru u mortgages

fuq ināenji tal-ajru u biex iħassar u jdaħħal mill-ādid diversi

liāijiet eŜistenti rigward materji bħal dawk; u biex jirregola r-

reāistru tal-ināenji tal-ajru, biex jintroduëi regoli dwar

mortgages fuq ināenji tal-ajru, ir-reāistrazzjoni tagħhom u l-

infurzar tagħhom, biex idaħħal regoli dwar privileāāi speëjali

fuq ināenji tal-ajru, u biex jimplimenta l-Konvenzjoni dwar

Garanziji Internazzjonali u l-Protokoll li jinsab magħha dwar

Materji li Għandhom x’Jaqsmu ma’ Tagħmir tal-Ināenji tal-

Ajru.

IL-PRESIDENT bil-parir u l-kunsens tal-Kamra tad-Deputati,

imlaqqgħa f’dan il-Parlament, u bl-awtorità tal-istess, ħareā b’liāi

dan li āej:-

TAQSIMA I

PRELIMINARI U ĀENERALI

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 1 Short title and commencement. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1)

The short title of this Act is the Aircraft Registration

Act, 2010.

(2) This Act shall come into force on such a date as the

Minister may by Notice in the Gazette establish, and different dates

may be so established for different provisions or different purposes of

this Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
First Schedule — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(Articles 2, 4, 26, 28, 29, 30, 31, 32, 33, 39, 45, 50, 52, 53, 54, 55 and 58)

THE IMPLEMENTING LAW IN RESPECT OF THE CAPE TOWN

CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE

EQUIPMENT AND THE AIRCRAFT PROTOCOL THERETO

PREAMBLE

AWARE of the need to acquire and use aircraft equipment of high value or

particular economic significance and to facilitate the financing of the acquisition

and use of such equipment in an efficient manner,

RECOGNISING the advantages of asset-based financing and leasing for

this purpose and desiring to facilitate these types of transaction by establishing

clear rules to govern them,

MINDFUL of the need to ensure that interests in such equipment are

recognised and protected universally,

DESIRING to provide broad and mutual economic benefits for all interested

parties,

BELIEVING that such rules must reflect the principles underlying asset-

based financing and leasing and promote the autonomy of the parties necessary in

these transactions,

CONSCIOUS of the need to establish a legal framework for international

interests in such equipment and for that purpose use of an international registration

system for their protection,

MINDFUL of the principles and objectives of the Convention on

International Civil Aviation, signed at Chicago on 7 December 1944,

Malta has promulgated the following implementing legislation ("this

Schedule") relating to its accession to the Convention on International Interests in

Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft

Equipment

CHAPTER I

Sphere of application and general provisions

Article 1

Definitions

In this Schedule, references to "this Act" are references to the principal Act

to which this Schedule is annexed and except where the context otherwise

requires, the following terms are employed with the meanings set out below

(a)

"agreement" means a security agreement, a title reservation

agreement or a leasing agreement;

(b) "aircraft" means aircraft as defined for the purposes of the

Chicago Convention which are either airframes with aircraft engines

installed thereon or helicopters;

(c)

"aircraft engines" means aircraft engines (other than those used in

military, customs or police services) powered by jet propulsion or turbine or

piston technology and

(i) in the case of jet propulsion aircraft engines, have at least

1750 lb of thrust or its equivalent; and

(ii) in the case of turbine-powered or piston-powered aircraft

engines, have at least 550 rated take-off shaft horsepower or its

equivalent,

together with all modules and other installed, incorporated or attached

accessories, parts and equipment and all data, manuals and records relating

thereto;

(d) "aircraft objects" means airframes, aircraft engines and

helicopters;

(e)

"aircraft register" means the National Aircraft Registry or another

register maintained by a State or common mark registering authority for

purposes of the Chicago Convention;

(f)

"airframes” means" airframes (other than those used in military,

customs and police services) that, when appropriate aircraft engines are

installed thereon, are type certified by the competent aviation authority to

transport

(i)

at least eight (8) persons including crew; or

(ii) goods in excess of 2750 kilograms,

together with all installed, incorporated or attached accessories, parts and

equipment (other than aircraft engines), and all data, manuals and records

relating thereto;

(g) "assignment" means a contract which, whether by way of security

or otherwise, confers on the assignee associated rights with or without a

transfer of the related international interest;

(h) "associated rights" means all rights to payment or other

performance by a debtor under an agreement which are secured by or

associated with the aircraft object;

(i)

"authorised party" means the party referred to in Article 25(3);

(j)

"Cape Town Convention" means the Convention on International

Interests in Mobile Equipment as modified by the Protocol to the Convention

on International Interests in Mobile Equipment on Matters specific to

Aircraft Equipment, each concluded at Cape Town, South Africa on 16

November 2001;

(k) "Cape Town Convention State" means any State that is party to

the Cape Town Convention;

(l)

"Chicago Convention" means the Convention on International

Civil Aviation, signed at Chicago on 7 December 1944, as amended, and its

Annexes;

(m) "commencement of the insolvency proceedings" means the time

at which the insolvency proceedings are deemed to commence under the

applicable insolvency law;

(n) "common mark registering authority" means the authority

maintaining a register in accordance with Article 77 of the Chicago

Convention as implemented by the Resolution adopted on 14 December 1967

by the Council of the International Civil Aviation Organization on nationality

and registration of aircraft operated by international operating agencies;

(o) "conditional buyer" means a buyer under a title reservation

agreement;

(p) "conditional seller" means a seller under a title reservation

agreement;

(q) "contract of sale" means a contract for the sale of an aircraft

object by a seller to a buyer which is not an agreement as defined in (a)

above;

(r)

"court" means a court of law or an administrative or arbitral

tribunal established by a Cape Town Convention State;

(s)

"creditor" means a chargee under a security agreement, a

conditional seller under a title reservation agreement or a lessor under a

leasing agreement;

(t)

"debtor" means a chargor under a security agreement, a

conditional buyer under a title reservation agreement, a lessee under a leasing

agreement or a person whose interest in an aircraft object is burdened by a

registrable non-consensual right or interest;

(u) "de-registration of the aircraft" means deletion or removal of the

registration of the aircraft from its aircraft register in accordance with the

Chicago Convention;

(v) "guarantee contract" means a contract entered into by a person as

guarantor;

(w) "guarantor" means a person who, for the purpose of assuring

performance of any obligations in favour of a creditor secured by a security

agreement or under an agreement, gives or issues a suretyship or demand

guarantee or a standby letter of credit or any other form of credit insurance;

(x) "helicopters" means heavier-than-air machines (other than those

used in military, customs or police services) supported in flight chiefly by the

reactions of the air on one or more power-driven rotors on substantially

vertical axes and which are type certified by the competent aviation authority

to transport

(i)

at least five (5) persons including crew; or

(ii) goods in excess of 450 kilograms,

together with all installed, incorporated or attached accessories, parts and

equipment (including rotors), and all data, manuals and records relating

thereto;

(y) "insolvency administrator" means a person authorised to

administer the reorganisation or liquidation, including one authorised on an

interim basis, and includes a debtor in possession if permitted by the

applicable insolvency law;

(z)

"insolvency proceedings" means bankruptcy, liquidation or other

collective judicial or administrative proceedings, including interim

proceedings, in which the assets and affairs of the debtor are subject to

control or supervision by a court for the purposes of reorganisation or

liquidation;

(aa)

"insolvency-related event" means

(i)

the commencement of the insolvency proceedings; or

(ii) the declared intention to suspend or actual suspension of

payments by the debtor where the creditor’s right to institute insolvency

proceedings against the debtor or to exercise remedies under this Act is

prevented or suspended by law or State action;

(bb) "interested persons" means

(i)

the debtor;

(ii) any guarantor;

(iii) any other person having rights in or on the aircraft object;

(cc) "international interest" means an interest held by a creditor to

which Article 2 applies;

(dd) "International Registry" means the international registration

facilities established by the Cape Town Convention;

(ee) "leasing agreement" means an agreement by which one person

(the lessor) grants a right to possession or control of an aircraft object (with

or without an option to purchase) to another person (the lessee) in return for a

rental or other payment;

(ff) "National Aircraft Register" means the National Aircraft Register

of Malta;

(gg) "non-consensual right or interest" means a right or interest

conferred under the law of a Cape Town Convention State to secure the

performance of an obligation, including an obligation to a State, State entity

or an intergovernmental or private organisation;

(hh) "pre-existing right or interest" means a right or interest of any

kind in or on an aircraft object created or arising before the effective date of

this Schedule, as specified in Article 56 of this Schedule;

(ii) "primary insolvency jurisdiction" means the Cape Town

Convention State in which the centre of the debtor’s main interests is

situated, which for this purpose shall be deemed to be the place of the

debtor’s statutory seat or, if there is none, the place where the debtor is

incorporated or formed, unless proved otherwise;

(jj) "priority non-consensual right or interest" means a non-

consensual right or interest conferred under the law of Malta of the following

types

(i) judicial costs incurred in respect of the sale of the aircraft

and the distribution of the proceeds thereof pursuant to the enforcement

of any mortgage or other executive title;

(ii) fees and other charges due to the Director General arising

under applicable law of Malta in respect of the aircraft;

(iii) wages due to crew in respect of their employment on the

aircraft;

(iv) any debt due to the holder of a possessory lien for the

repair, preservation of the aircraft to the extent of the service performed

on and value added to the aircraft;

(v) the expenses incurred for the repair, preservation of the

aircraft to the extent of the service performed on and value added to the

aircraft; and

(vi) wages and expenses for salvage in respect of the aircraft.

(kk) "proceeds" means money or non-money proceeds of an aircraft

object arising from the total or partial loss or physical destruction of the

aircraft object or its total or partial confiscation, condemnation or requisition;

(ll) "prospective assignment" means an assignment that is intended to

be made in the future, upon the occurrence of a stated event, whether or not

the occurrence of the event is certain;

(mm) "prospective international interest" means an interest that is

intended to be created or provided for in an aircraft object as an international

interest in the future, upon the occurrence of a stated event (which may

include the debtor’s acquisition of an interest in the aircraft object), whether

or not the occurrence of the event is certain;

(nn) "prospective sale" means a sale which is intended to be made in

the future, upon the occurrence of a stated event, whether or not the

occurrence of the event is certain;

(oo) "registered" means registered in the International Registry under

the Cape Town Convention;

(pp) "registered interest" means an interest registered with the

International Registry pursuant to the Cape Town Convention;

(qq) "registrable non-consensual right or interest" means a non-

consensual right or interest conferred under the law of Malta of the following

types

(i) taxes, duties and/or levies due to the Government of Malta

in respect of the aircraft;

(ii) wages and expenses for assistance or recovery in respect of

the aircraft;

(rr) "Registrar" means the person or body serving as Registrar under

the Cape Town Convention;

(ss) "registry authority" means the Maltese Director General of Civil

Aviation as the authority maintaining a National Aircraft Register, which is

responsible for the registration and de-registration of an aircraft in Malta in

accordance with the Chicago Convention;

(tt) "regulations" means regulations made or approved by the

Supervisory Authority pursuant to the Cape Town Convention;

(uu) "sale" means a transfer of ownership of an aircraft object

pursuant to a contract of sale;

(vv) "secured obligation" means an obligation secured by a security

interest;

(ww) "security agreement" means an agreement by which a chargor

grants or agrees to grant to a chargee an interest (including an ownership

interest) in or over an aircraft object to secure the performance of any

existing or future obligation of the chargor or a third person;

(xx) "security interest" means an interest created by a security

agreement;

(yy) "State of registry" means, in respect of an aircraft, the State on the

national register of which an aircraft is entered or the State of location of the

common mark registering authority maintaining the aircraft register;

(zz) "Supervisory Authority" means the body acting as Supervisory

Authority under the Cape Town Convention;

(aaa) "title reservation agreement" means an agreement for the sale of

an aircraft object on terms that ownership does not pass until fulfilment of

the condition or conditions stated in the agreement;

(bbb) "unregistered interest" means a consensual interest or non-

consensual right or interest (other than a priority non-consensual right or

interest to the extent specified in Article 45(1)) which has not been

registered, whether or not it is registrable under the Cape Town Convention

or this Act; and

(ccc) "writing" means a record of information (including information

communicated by teletransmission) which is in tangible or other form and is

capable of being reproduced in tangible form on a subsequent occasion and

which indicates by reasonable means a person’s approval of the record.

Article 2

The international interest

1. This Act provides for the constitution and effects of an international

interest in aircraft objects and associated rights.

2. For the purposes of this Schedule, an international interest in aircraft

objects is an interest, constituted under Article 10, in airframes, aircraft engines or

helicopters

(a)

granted by the chargor under a security agreement;

(b) vested in a person who is the conditional seller under a title

reservation agreement; or

(c)

vested in a person who is the lessor under a leasing agreement.

An interest falling within sub-paragraph (a) does not also fall within sub-

paragraph (b) or (c).

3. The applicable law determines whether an interest to which the

preceding paragraph applies falls within sub-paragraph (a), (b) or (c) of that

paragraph.

4. An international interest in an aircraft object extends to proceeds of that

aircraft object.

Article 3

Sphere of application

1. This Act applies when, at the time of the conclusion of the agreement

creating or providing for the international interest or a contract of sale, the debtor

or seller, as applicable, is situated in a Cape Town Convention State.

2. The fact that the creditor or buyer is situated in a non-Cape Town

Convention State does not affect the applicability of this Act.

3. Without prejudice to paragraph 1 of this Article, this Schedule shall also

apply in relation to a helicopter, or to an airframe pertaining to an aircraft,

registered in an aircraft register of a Cape Town Convention State which is the

State of registry, and where such registration is made pursuant to an agreement for

registration of the aircraft it is deemed to have been effected at the time of the

agreement.

Article 4

Where debtor or seller is situated

1. For the purposes of Article 3(1), the debtor or seller is situated in any

Cape Town Convention State

(a)

under the laws of which it is incorporated or formed;

(b)

where it has its registered office or statutory seat;

(c)

where it has its centre of administration; or

(d)

where it has its place of business.

2. A reference in sub-paragraph (d) of the preceding paragraph to the

debtor’s place of business shall, if it has more than one place of business, mean its

principal place of business or, if it has no place of business, its habitual residence.

Article 5

Interpretation and applicable law

1. In the interpretation of this Schedule, regard is to be had to its purposes

as set forth in the preamble, to its international character and to the need to

promote uniformity and predictability in its application.

2. Questions concerning matters governed by this Schedule which are not

expressly settled in it are to be settled in conformity with the general principles on

which it is based or, in the absence of such principles, in conformity with the

applicable law.

3. References to the applicable law are to the domestic rules of the law

applicable by virtue of rules of private international law of the forum State.

Article 6

Application to sale and prospective sale

In addition to the specific provisions in this Schedule referring to sales and

prospective sales, the general provisions of Article 1, Article 5, Chapters IV to VII,

Article 35, Chapter X, Chapter XI (other than Article 48), Chapter XII and Chapter

XIII shall apply to contracts of sale and prospective sales.

Article 7

Representative capacities

A person may enter into an agreement or a sale, and register an international

interest in, or a sale of, an aircraft object [or take any other action under this

Schedule], in an agency, trust or other representative capacity. In such case, that

person is entitled to assert rights and interests under this Schedule.

Article 8

Description of aircraft objects

A description of an aircraft object that contains its manufacturer’s serial

number, the name of the manufacturer and its model designation is necessary and

sufficient to identify the aircraft object for the purposes of Articles 10(c) and

11(1)(c) of this Schedule.

Article 9

Choice of law

Intentionally omitted in the light of the terms of Accession to the Convention

and the Protocol by the European Union

CHAPTER II

Constitution of an international interest; contracts of sale

Article 10

Formal requirements

1. An interest is constituted as an international interest under this Schedule

where the agreement creating or providing for the interest

(a)

is in writing;

(b) relates to an aircraft object of which the chargor, conditional

seller or lessor has power to dispose;

(c)

enables the aircraft object to be identified; and

(d) in the case of a security agreement, enables the secured

obligations to be determined, but without the need to state a sum or

maximum sum secured.

2. Unless otherwise agreed, the reference in the preceding paragraph to the

law chosen by the parties is to the domestic rules of law of the designated State or,

where that State comprises several territorial units, to the domestic law of the

designated territorial unit.

Article 11

Formalities and effects of contracts of sale

1. For the purposes of this Act, a contract of sale is one which

(a)

is in writing;

(b) relates to an aircraft object of which the seller has power to

dispose; and

(c)

enables the aircraft object to be identified in conformity with this

Schedule.

2. A contract of sale transfers the interest of the seller in the aircraft object

to the buyer according to its terms.

CHAPTER III

Default remedies

Article 12

Remedies of chargee

1. In the event of default as provided in Article 17, the chargee may, to the

extent that the chargor has at any time so agreed, exercise any one or more of the

following remedies

(a)

take possession or control of any aircraft object charged to it;

(b)

sell or grant a lease of any such aircraft object;

(c)

collect or receive any income or profits arising from the

management or use of any such aircraft object.

2. The chargee may alternatively apply for a court order authorising or

directing any of the acts referred to in the preceding paragraph.

3. A chargee proposing to sell or grant a lease of an aircraft object under

paragraph 1 shall give reasonable prior notice in writing of the proposed sale or

lease to

(a)

interested persons specified in Article 1(bb)(i) and (ii); and

(b) interested persons specified in Article 1(bb)(iii) who have given

notice of their rights to the chargee within a reasonable time prior to the sale

or lease.

4. A chargee giving ten or more working days’ prior written notice of a

proposed sale or lease to interested persons shall be deemed to satisfy the

requirement of providing "reasonable prior notice" specified in the preceding

paragraph. The foregoing shall not prevent a chargee and a chargor or a guarantor

from agreeing to a longer period of prior notice.

5. Any sum collected or received by the chargee as a result of exercise of

any of the remedies set out in paragraph 1 or 2 shall be applied towards discharge

of the amount of the secured obligations.

6. Where the sums collected or received by the chargee as a result of the

exercise of any remedy set out in paragraph 1 or 2 exceed the amount secured by

the security interest and any reasonable costs incurred in the exercise of any such

remedy, then unless otherwise ordered by the court the chargee shall distribute the

surplus among holders of subsequently ranking interests which have been

registered or of which the chargee has been given notice, in order of priority, and

pay any remaining balance to the chargor.

Article 13

Vesting of aircraft object in satisfaction; redemption

1. At any time after default as provided in Article 17, the chargee and all

the interested persons may agree that ownership of (or any other interest of the

chargor in) any aircraft object covered by the security interest shall vest in the

chargee in or towards satisfaction of the secured obligations.

2. The court may on the application of the chargee order that ownership of

(or any other interest of the chargor in) any aircraft object covered by the security

interest shall vest in the chargee in or towards satisfaction of the secured

obligations.

3. The court shall grant an application under the preceding paragraph only

if the amount of the secured obligations to be satisfied by such vesting is

commensurate with the value of the aircraft object after taking account of any

payment to be made by the chargee to any of the interested persons.

4. At any time after default as provided in Article 17 and before sale of the

charged aircraft object or the making of an order under paragraph 2, the chargor or

any interested person may discharge the security interest by paying in full the

amount secured, subject to any lease granted by the chargee under Article 12(1)(b)

or ordered under Article 12(2). Where, after such default, the payment of the

amount secured is made in full by an interested person other than the debtor, that

person is subrogated to the rights of the chargee.

5. Ownership or any other interest of the chargor passing on a sale under

Article 12(1)(b) or passing under paragraph 1 or 2 of this Article is free from any

other interest over which the chargee’s security interest has priority under the

provisions of Article 35.

Article 14

Remedies of conditional seller or lessor

In the event of default under a title reservation agreement or under a leasing

agreement as provided in Article 17, the conditional seller or the lessor, as the case

may be, may

(a)

terminate the agreement and take possession or control of any

aircraft object to which the agreement relates; or

(b)

apply for a court order authorising or directing either of these

acts.

Article 15

Additional remedies of creditor

1. In addition to the remedies specified in Articles 12, 14, 16 and 20, the

creditor may, to the extent that the debtor has at any time so agreed and in the

circumstances specified in such provisions

(a)

procure the de-registration of the aircraft; and

(b) procure the export and physical transfer of the aircraft object

from the territory in which it is situated.

2. The creditor shall not exercise the remedies specified in the preceding

paragraph without the prior consent in writing of the holder of any registered

interest ranking in priority to that of the creditor.

3. The registry authority shall, subject to any applicable safety laws and

regulations, honour a request for de-registration and export if

(a)

the request is properly submitted by the authorised party under a

recorded irrevocable de-registration and export request authorisation; and

(b) the authorised party certifies to the registry authority, if required

by that authority, that all registered interests ranking in priority to that of the

creditor in whose favour the authorisation has been issued have been

discharged or that the holders of such interests have consented to the de-

registration and export.

4. A chargee proposing to procure the deregistration and export of an

aircraft under paragraph 1 otherwise than pursuant to a court order shall give

reasonable prior notice in writing of the proposed deregistration and export to

(a)

interested persons specified in Article 1(bb)(i) and (ii); and

(b) interested persons specified in Article 1(bb)(iii) who have given

notice of their rights to the chargee within a reasonable time prior to the

deregistration and export.

Article 16

Additional remedies under applicable law

Any additional remedies permitted by the applicable law, including any

remedies agreed upon by the parties, may be exercised to the extent that they are

not inconsistent with the mandatory provisions of this Chapter as set out in Article

22. Article 17

Meaning of default

1. The debtor and the creditor may at any time agree in writing as to the

events that constitute a default or otherwise give rise to the rights and remedies

specified in Articles 12 to 15 and 20.

2. Where the debtor and the creditor have not so agreed, "default" for the

purposes of Articles 12 to 15 and 20 means a default which substantially deprives

the creditor of what it is entitled to expect under the agreement.

Article 18

Debtor provisions

1. In the absence of a default within the meaning of Article 17, the debtor

shall be entitled to the quiet possession and use of the aircraft object in accordance

with the agreement as against

(a)

its creditor and the holder of any interest from which the debtor

takes free pursuant to Article 35(5) or, in the capacity of buyer, Article 35(3),

unless and to the extent that the debtor has otherwise agreed; and

(b) the holder of any interest to which the debtor’s right or interest is

subject pursuant to Article 35(5) or, in the capacity of buyer, Article 35(4),

but only to the extent, if any, that such holder has agreed.

2. Nothing in this Schedule affects the liability of a creditor for any breach

of the agreement under the applicable law in so far as that agreement relates to an

aircraft object.

Article 19

Standard for exercising remedies

Any remedy given by this Schedule in relation to an aircraft object shall be

exercised in a commercially reasonable manner. A remedy shall be deemed to be

exercised in a commercially reasonable manner where it is exercised in conformity

with a provision of the agreement except where such a provision is manifestly

unreasonable.

Article 20

Relief pending final determination

1. A creditor who adduces evidence of default by the debtor shall, pending

final determination of its claim and to the extent that the debtor has at any time so

agreed, be entitled to obtain from a court speedy relief in the form of such one or

more of the following orders as the creditor requests

(a)

preservation of the aircraft object and its value;

(b)

possession, control or custody of the aircraft object;

(c)

immobilisation of the aircraft object;

(d) lease or, except where covered by sub-paragraphs (a) to (c),

management of the aircraft object and the income therefrom; and

(e)

if at any time the debtor and the creditor specifically agree, sale

and application of proceeds therefrom.

2. For the purposes of the preceding paragraph, "speedy" in the context of

obtaining relief means, in respect of the relief specified in Article 20(1)(a)-(c), the

number of working days equivalent to no more than ten (10) calendar days, and in

respect of the relief specified in Article 20(1)(d)-(e), the number of working days

equivalent to no more than thirty (30) calendar days, in each case from the date the

application for relief is filed.

3. Ownership or any other interest of the debtor passing on a sale under

sub-paragraph (e) of paragraph 1 of this Article is free from any other interest over

which the creditor’s international interest has priority under the provisions of

Article 35 of this Schedule.

4. In making any order under paragraph 1 of this Article, the court may

impose such terms as it considers necessary to protect the interested persons in the

event that the creditor

(a)

in implementing any order granting such relief, fails to perform

any of its obligations to the debtor under this Act; or

(b) fails to establish its claim, wholly or in part, on the final

determination of that claim.

5. The creditor and the debtor or any other interested person may agree in

writing to exclude the application of the preceding paragraph.

6. Before making any order under paragraph 1, the court may require

notice of the request to be given to any of the interested persons.

7. With regard to the remedies in Article 15(1)

(a)

they shall be made available by the registry authority and other

administrative authorities, as applicable, in no later than five (5) working

days after the creditor notifies such authorities that the relief specified in

Article 15(1) is granted or, in the case of relief granted by a foreign court,

recognised by a Maltese court, and that the creditor is entitled to procure

those remedies in accordance with this Schedule; and

(b) the applicable authorities shall expeditiously co-operate with and

assist the creditor in the exercise of such remedies in conformity with the

applicable aviation safety laws and regulations.

8. Nothing in the preceding paragraphs affects the application of Article

19 or limits the availability of forms of interim relief other than those set out in

paragraph 1.

9. Paragraphs 2 and 7 shall not affect any applicable aviation safety laws

and regulations.

Article 21

Procedural requirements; Non-Judicial Remedies

1. Subject to paragraph 2, any remedy provided by this Chapter shall be

exercised in conformity with the procedure prescribed by the law of the place

where the remedy is to be exercised.

2. Any remedy available to the creditor under any provision of this

Schedule which is not there expressed to require application to the court may be

exercised without court action and without leave of the court.

Article 22

Derogation

Any two or more of the parties referred to in this Chapter may at any time, by

agreement in writing, exclude the application of Article 23 and, in their relations

with each other, derogate from or vary the effect of any of the preceding provisions

of this Chapter, except as stated in Articles 12(3) to (6), 13(3) and (4), 15(2), 19

and 21.

Article 23

Remedies on insolvency

1. This Article applies to all insolvency proceedings where Malta is the

primary insolvency jurisdiction.

2. Upon the occurrence of an insolvency-related event, the insolvency

administrator or the debtor, as applicable, shall, subject to paragraph 7, give

possession of the aircraft object to the creditor no later than the earlier of

(a)

the end of the waiting period; and

(b) the date on which the creditor would be entitled to possession of

the aircraft object if this Article did not apply.

3. For the purposes of this Article, the "waiting period" shall be the period

of thirty (30) calendar days commencing on the date of the insolvency-related

event.

4. References in this Article to the "insolvency administrator" shall be to

that person in its official, not in its personal, capacity.

5. Unless and until the creditor is given the opportunity to take possession

under paragraph 2

(a)

the insolvency administrator or the debtor, as applicable, shall

preserve the aircraft object and maintain it and its value in accordance with

the agreement; and

(b) the creditor shall be entitled to apply for any other forms of

interim relief available under the applicable law.

6. Sub-paragraph (a) of the preceding paragraph shall not preclude the use

of the aircraft object under arrangements designed to preserve the aircraft object

and maintain it and its value.

7. The insolvency administrator or the debtor, as applicable, may retain

possession of the aircraft object where, by the time specified in paragraph 2, it has

cured all defaults other than a default constituted by the opening of insolvency

proceedings and has agreed to perform all future obligations under the agreement.

A second waiting period shall not apply in respect of a default in the performance

of such future obligations.

8. With regard to the remedies in Article 15(1)

(a)

they shall be made available by the registry authority and the

administrative authorities, as applicable, no later than five working days after

the date on which the creditor notifies such authorities that it is entitled to

procure those remedies in accordance with this Schedule; and

(b) the applicable authorities shall expeditiously co-operate with and

assist the creditor in the exercise of such remedies in conformity with the

applicable aviation safety laws and regulations.

9. No exercise of remedies permitted by this Schedule may be prevented

or delayed after the date specified in paragraph 2.

10. No obligations of the debtor under the agreement may be modified

without the consent of the creditor.

11. Nothing in the preceding paragraph shall be construed to affect the

authority, if any, of the insolvency administrator under the applicable law to

terminate the agreement.

12. No rights or interests, except for a priority non-consensual right or

interest to the extent specified in Article 45(1), shall have priority in insolvency

proceedings over registered interests.

13. The provisions of this Schedule shall apply to the exercise of any

remedies under this Article.

Article 24

Insolvency assistance

1. This Article applies where Malta is not the primary insolvency

jurisdiction.

2. Where an aircraft object is situated in Malta its courts shall, in

accordance with the laws of Malta, co-operate to the maximum extent possible

with foreign courts and foreign insolvency administrators in carrying out the

provisions of Article 23.

Article 25

De-registration and export request authorization

1. This Article applies where an airframe pertaining to an aircraft, or a

helicopter, is registered in the National Aircraft Register.

2. Where the debtor has issued an irrevocable de-registration and export

request authorisation substantially in the form in the Second Schedule and has

submitted such authorisation for recordation to the registry authority, that

authorisation shall be so recorded.

3. The person in whose favour the authorization has been issued (the

"authorized party") or its certified designee shall be the sole person entitled to

exercise the remedies specified in Article 15(1) and may do so only in accordance

with the authorization and applicable aviation safety laws and regulations. Such

authorisation may not be revoked by the debtor without the consent in writing of

the authorized party. The registry authority shall remove an authorization from the

registry at the request of the authorized party.

4. The registry authority and other administrative authorities shall

expeditiously co-operate with and assist the authorized party in the exercise of the

remedies specified in Article 15.

CHAPTER IV

Registrations in the international registration system

Article 26

Means and Effect of Registration

1. Registration in the International Registry under the Cape Town

Convention is the only means of establishing the priority of a right or interest in an

aircraft object, such priority being determined in accordance with Article 35,

except only in respect of a priority non-consensual right or interest, whose priority

is determined in accordance with Article 45(1).

2. Only those registrations with the International Registry permitted by the

Cape Town Convention and complying with the regulations and this Act shall,

when made, be valid for purposes of determining priority. Such permitted

registrations are

(a)

international interests, prospective international interests and

registrable non-consensual rights and interests;

(b)

assignments and prospective assignments of international

interests;

(c)

acquisitions of international interests by legal or contractual

subrogations under the applicable law;

(d) "notices of a national interest", as defined in the Cape Town

Convention, under the laws of a Cape Town Convention State permitting

such notice through a declaration thereunder made by that State, Malta not

having made such a declaration;

(e)

subordinations of interests referred to in any of the preceding

sub-paragraphs; and

(f)

sales and prospective sales.

3. All information required for the registrations referred to in the previous

paragraph in relation to a helicopter, or to an airframe pertaining to an aircraft,

registered for nationality purposes in the National Aircraft Register may only be

transmitted directly to the International Registry, not through any designated entry

point.

4. Omitted intentionally.

5. For the purposes of this Chapter and Chapter V, the term "registration"

includes, where appropriate, an amendment, extension or discharge of a

registration.

CHAPTER V

Modalities of registration

Article 27

Validity and time of registration

1. A registration shall be valid only if made in conformity with Article 28.

2. A registration, if valid, shall be complete upon entry of the required

information into the International Registry database so as to be searchable.

3. A registration shall be searchable for the purposes of the preceding

paragraph at the time when

(a)

the International Registry has assigned to it a sequentially

ordered file number; and

(b) the registration information, including the file number, is stored

in durable form and may be accessed at the International Registry.

4. If an interest first registered as a prospective international interest or

prospective sale becomes an international interest or a sale, respectively, that

international interest or sale shall be treated as registered from the time of

registration of the prospective international interest or prospective sale provided

that the registration was still current immediately before the international interest

or contract of sale was constituted as provided by Article 10 or 11.

5. The preceding paragraph applies with necessary modifications to the

registration of a prospective assignment of an international interest.

6. A registration pertaining to an aircraft object shall be searchable in the

International Registry data base according to the name of its manufacturer, its

manufacturer’s serial number and its model designation, as further specified in the

regulations.

Article 28

Consent to registration

1. An international interest, a prospective international interest, an

assignment or prospective assignment of an international interest, or a contract of

sale or a prospective sale may be registered, and any such registration extended

prior to its expiry (except in respect of a contract of sale) or amended, by either

party with the consent in writing of the other.

2. The subordination of an international interest to another international

interest may be registered by or with the consent in writing at any time of the

person whose interest has been subordinated.

3. A registration may be discharged by or with the consent in writing of

the party in whose favour it was made.

4. The acquisition of an international interest by legal or contractual

subrogation may be registered by the subrogee.

5. A registrable non-consensual right or interest may be registered by the

holder thereof.

Article 29

Duration of registration

1. Registration of an international interest remains effective until

discharged or until expiry of the period specified in the registration.

2. Registration of a contract of sale remains effective indefinitely.

Registration of a prospective sale remains effective unless discharged or until

expiry of the period, if any, specified in the registration.

Article 30

Searches

1. Any person may, in the manner prescribed by this Act and the

regulations, make or request a search of the International Registry by electronic

means concerning interests or prospective interests international registered therein.

2. Any person may request and receive from the Registrar, in the manner

prescribed by the regulations, a registry search certificate by electronic means with

respect to any aircraft object

(a)

stating all registered information relating thereto, together with a

statement indicating the date and time of registration of such information; or

(b) stating that there is no information in the International Registry

relating thereto.

3. A search certificate issued under the preceding paragraph shall indicate

that the creditor named in the registration information has acquired or intends to

acquire an international interest in the object but shall not indicate whether what is

registered is an international interest or a prospective international interest, even if

this is ascertainable from the relevant registration information.

Article 31

Evidentiary value of certificates

A document in the form prescribed by the regulations which purports to be a

certificate issued by the International Registry is prima facie proof

(a)

that it has been so issued; and

(b) of the facts recited in it, including the date and time of a

registration.

Article 32

Discharge of registration

1. Where the obligations secured by a registered security interest or the

obligations giving rise to a registered non-consensual right or interest have been

discharged, or where the conditions of transfer of title under a registered title

reservation agreement have been fulfilled, the holder of such interest shall, without

undue delay, procure the discharge of the registration after written demand by the

debtor delivered to or received at its address stated in the registration.

2. Where a prospective international interest, a prospective assignment of

an international interest, or a prospective sale has been registered, the intending

creditor, intending assignee, or intending buyer shall, without undue delay, procure

the discharge of the registration after written demand by the intending debtor,

assignor or seller which is delivered to or received at its address stated in the

registration before the intending creditor, assignee or buyer has given value or

incurred a commitment to give value.

3. For the purpose of the preceding paragraph and in the circumstances

there described, the holder of a registered prospective international interest or a

registered prospective assignment of an international interest or the person in

whose favour a prospective sale has been registered shall take such steps as are

within its power to procure the discharge of the registration no later than five

working days after the receipt of the demand described in such paragraph.

4. Where a registration ought not to have been made or is incorrect, the

person in whose favour the registration was made shall, without undue delay,

procure its discharge or amendment after written demand by the debtor [or seller]

to or received at its address stated in the registration.

CHAPTER VI

Recognition of certain privileges and immunities of the

Supervisory Authority and the Registrar

Article 33

Legal personality; immunity

As a matter of law Malta recognises that

(a)

the Supervisory Authority has international legal personality;

(b) the Supervisory Authority and its officers and employees shall

enjoy such immunity from legal and administrative process as is provided

under the rules applicable to them as an international entity or otherwise;

(c)

the assets, documents, databases and archives of the International

Registry shall be inviolable and immune from seizure or other legal or

administrative process;

(d) for the purposes of any claim against the Registrar under Article

34(1) or Article 49, the claimant shall be entitled to access to such

information and documents as are necessary to enable the claimant to pursue

its claim; and

(e)

the Supervisory Authority may waive the inviolability and

immunity conferred by paragraph (c) of this Article.

CHAPTER VII

Recognition of Liability of the Registrar

Article 34

Standard and extent of liability

1. As a matter of law Malta recognises that the Registrar shall be liable for

compensatory damages for loss suffered by a person directly resulting from an

error or omission of the Registrar and its officers and employees or from a

malfunction of the international registration system except where the malfunction

is caused by an event of an inevitable and irresistible nature, which could not be

prevented by using the best practices in current use in the field of electronic

registry design and operation, including those related to back-up and systems

security and networking.

2. The Registrar shall not be liable under the preceding paragraph for

factual inaccuracy of registration information received by the Registrar or

transmitted by the Registrar in the form in which it received that information nor

for acts or circumstances for which the Registrar and its officers and employees are

not responsible and arising prior to receipt of registration information at the

International Registry.

3. Compensation under paragraph 1 may be reduced to the extent that the

person who suffered the damage caused or contributed to that damage.

CHAPTER VIII

Effects of an international interest as against third parties

Article 35

Priority of competing interests

1. A registered interest has priority over any other interest subsequently

registered and over an unregistered interest.

2. The priority of the first-mentioned interest under the preceding

paragraph applies

(a)

even if the first-mentioned interest was acquired or registered

with actual knowledge of the other interest; and

(b) even as regards value given by the holder of the first-mentioned

interest with such knowledge.

3. A buyer of an aircraft object under a registered sale acquires its interest

in that object free from an interest subsequently registered and from an

unregistered interest, even if the buyer has actual knowledge of the unregistered

interest.

4. A buyer of an aircraft object under a registered sale acquires its interest

in that object subject to an interest previously registered.

5. A conditional buyer or lessee acquires its interest in or right over that

object

(a)

subject to an interest registered prior to the registration of the

international interest held by its conditional seller or lessor; and

(b) free from an interest not so registered at that time even if it has

actual knowledge of that interest.

6. The priority of competing interests or rights under this Article may be

varied by agreement between the holders of those interests, but an assignee of a

subordinated interest is not bound by an agreement to subordinate that interest

unless at the time of the assignment a subordination had been registered relating to

that agreement.

7. Any priority given by this Article to an interest in an aircraft object

extends to proceeds.

8. This Schedule -

(a)

does not affect the rights of a person in an item, other than an

aircraft object, held prior to its installation on an aircraft object if under the

applicable law those rights continue to exist after the installation; and

(b) does not prevent the creation of rights in an item, other than an

aircraft object, which has previously been installed on an aircraft object

where under the applicable law those rights are created.

9. Ownership of or another right or interest in an aircraft engine shall not

be affected by its installation on or removal from an aircraft.

10. Paragraph 8 of this Article applies to an item, other than an aircraft

object, installed on an airframe, aircraft engine or helicopter.

Article 36

Effects of insolvency

1. In insolvency proceedings against the debtor or seller an international

interest or sale, as applicable, is effective if prior to the commencement of the

insolvency proceedings that interest or sale was registered in conformity with this

Schedule.

2. Nothing in this Article impairs the effectiveness of an international

interest or sale in the insolvency proceedings where that interest is effective under

the applicable law.

3. Nothing in this Article affects any rules of law applicable in insolvency

proceedings relating to the avoidance of a transaction as a preference or a transfer

in fraud of creditors or, except as provided in Article 23, any rules of procedure

relating to the enforcement of rights to property which is under the control or

supervision of the insolvency administrator.

CHAPTER IX

Assignments of associated rights and international interests;

rights of subrogation

Article 37

Effects of assignment

1. Except as otherwise agreed by the parties, an assignment of associated

rights made in conformity with Article 38 also transfers to the assignee

(a)

the related international interest; and

(b)

all the interests and priorities of the assignor under this Schedule.

2. Nothing in this Schedule prevents a partial assignment of the assignor’s

associated rights. In the case of such a partial assignment the assignor and assignee

may agree as to their respective rights concerning the related international interest

assigned under the preceding paragraph but not so as adversely to affect the debtor

without its consent.

3. Subject to paragraph 4, the applicable law shall determine the defences

and rights of set-off available to the debtor against the assignee.

4. The debtor may at any time by agreement in writing waive all or any of

the defences and rights of set-off referred to in the preceding paragraph other than

defences arising from fraudulent acts on the part of the assignee.

5. In the case of an assignment by way of security, the assigned associated

rights re-vest in the assignor, to the extent that they are still subsisting, when the

obligations secured by the assignment have been discharged.

Article 38

Formal requirements of assignment

1. An assignment of associated rights transfers the related international

interest only if it

(a)

is in writing;

(b) enables the associated rights to be identified under the contract

from which they arise; and

(c)

in the case of an assignment by way of security, enables the

obligations secured by the assignment to be determined in accordance with

this Schedule but without the need to state a sum or maximum sum secured.

2. An assignment of an international interest created or provided for by a

security agreement is not valid unless some or all related associated rights are also

assigned.

3. This Schedule does not apply to an assignment of associated rights

which is not effective to transfer the related international interest.

Article 39

Debtor’s duty to assignee

1. To the extent that associated rights and the related international interest

have been transferred in accordance with Articles 37 and 38, the debtor in relation

to those rights and that interest is bound by the assignment and has a duty to make

payment or give other performance to the assignee, if but only if

(a)

the debtor has been given notice of the assignment in writing by

or with the authority of the assignor;

(b)

the notice identifies the associated rights; and

(c)

the debtor has consented in writing, whether or not the consent is

given in advance of the assignment or identifies the assignee.

2. Irrespective of any other ground on which payment or performance by

the debtor discharges the latter from liability, payment or performance shall be

effective for this purpose if made in accordance with the preceding paragraph.

3. Nothing in this Article shall affect the priority of competing

assignments.

Article 40

Default remedies in respect of assignment by way of security

In the event of default by the assignor under the assignment of associated

rights and the related international interest made by way of security, Articles 12,

13 and 15 to 21 apply in the relations between the assignor and the assignee (and,

in relation to associated rights, apply in so far as those provisions are capable of

application to intangible property) as if references

(a)

to the secured obligation and the security interest were references

to the obligation secured by the assignment of the associated rights and the

related international interest and the security interest created by that

assignment;

(b) to the chargee or creditor and chargor or debtor were references

to the assignee and assignor;

(c)

to the holder of the international interest were references to the

assignee; and

(d) to the aircraft object were references to the assigned associated

rights and the related international interest.

Article 41

Priority of competing assignments

1. Where there are competing assignments of associated rights and at least

one of the assignments includes the related international interest and is registered,

the provisions of Article 35 apply as if the references to a registered interest were

references to an assignment of the associated rights and the related registered

interest and as if references to a registered or unregistered interest were references

to a registered or unregistered assignment.

2. Article 36 applies to an assignment of associated rights as if the

references to an international interest were references to an assignment of the

associated rights and the related international interest.

Article 42

Assignee’s priority with respect to associated rights

1. The assignee of associated rights and the related international interest

whose assignment has been registered only has priority under Article 41(1) over

another assignee of the associated rights

(a)

if the contract under which the associated rights arise states that

they are secured by or associated with the object; and

(b)

to the extent that the associated rights are related to an aircraft

object.

2. For the purpose of sub-paragraph (b) of the preceding paragraph,

associated rights are related to an aircraft object only to the extent that they consist

of rights to payment or performance that relate to

(a)

a sum advanced and utilised for the purchase of the aircraft

object;

(b) a sum advanced and utilised for the purchase of another aircraft

object in which the assignor held another international interest if the assignor

transferred that interest to the assignee and the assignment has been

registered;

(c)

the price payable for the aircraft object;

(d)

the rentals payable in respect of the aircraft object; or

(e)

other obligations arising from a transaction referred to in any of

the preceding sub-paragraphs.

3. In all other cases, the priority of the competing assignments of the

associated rights shall be determined by the applicable law.

Article 43

Effects of assignor’s insolvency

The provisions of Article 36 apply to insolvency proceedings against the

assignor as if references to the debtor were references to the assignor.

Article 44

Subrogation

1. Subject to paragraph 2, nothing in this Schedule affects the acquisition

of associated rights and the related international interest by legal or contractual

subrogation under the applicable law.

2. The priority between any interest within the preceding paragraph and a

competing interest may be varied by agreement in writing between the holders of

the respective interests but an assignee of a subordinated interest is not bound by

an agreement to subordinate that interest unless at the time of the assignment a

subordination had been registered relating to that agreement.

CHAPTER X

Non-consensual right or interest

Article 45

Priority non-consensual right or interest

A priority non-consensual right or interest, to the extent it had priority over

an interest in an aircraft object equivalent to that of the holder of a registered

international interest prior to the effective date, shall retain that priority over a

registered international interest hereunder, whether in or outside of insolvency

proceedings.

Article 46

Registrable non-consensual right or interest

A registrable non-consensual right or interest relating to any aircraft object

may be registered under this Schedule as if the right or interest were an

international interest and shall be regulated accordingly.

CHAPTER XI

Jurisdiction

Article 47

Choice of forum

1. Subject to Articles 48 or 49, the courts of a Cape Town Convention

State chosen by the parties to a transaction have jurisdiction in respect of any claim

brought under this Schedule, whether or not the chosen forum has a connection

with the parties or the transaction. Such jurisdiction shall be exclusive unless

otherwise agreed between the parties.

2. Any such agreement shall be in writing or otherwise concluded in

accordance with the formal requirements of the law of the chosen forum.

Article 48

Jurisdiction under Article 20

1. The courts of a Cape Town Convention State chosen by the parties in

conformity with Article 47 and the courts of the Cape Town Convention State on

the territory of which the aircraft object is situated or in which the aircraft is

registered have jurisdiction to grant relief under Article 20(1)(a), (b), (c), and

Article 20(8) in respect of that aircraft object or aircraft.

2. Jurisdiction to grant relief under Article 20(1)(d) and (e) or other

interim relief by virtue of Article 20(8) may be exercised either

(a)

by the courts chosen by the parties; or

(b) by the courts of a Cape Town Convention State on the territory of

which the debtor is situated, being relief which, by the terms of the order

granting it, is enforceable only in the territory of that State.

3. A court has jurisdiction under the preceding paragraphs even if the final

determination of the claim referred to in Article 20(1) will or may take place in a

court of another Cape Town Convention State or by arbitration.

Article 49

Jurisdiction to make orders against the Registrar

1. The courts of the place in which the Registrar has its centre of

administration shall have exclusive jurisdiction to award damages or make orders

against the Registrar.

2. Where a person fails to respond to a demand made under Article 32 and

that person has ceased to exist or cannot be found for the purpose of enabling an

order to be made against it requiring it to procure discharge of the registration, the

courts referred to in the preceding paragraph shall have exclusive jurisdiction, on

the application of the debtor or intending debtor, to make an order directed to the

Registrar requiring the Registrar to discharge the registration.

3. Where a person fails to comply with an order of a court having

jurisdiction under these Rules, the courts referred to in paragraph 1 may direct the

Registrar to take such steps as will give effect to that order.

4. Except as otherwise provided by the preceding paragraphs, no court

may make orders or give judgments or rulings against or purporting to bind the

Registrar.

Article 50

Waivers of sovereign immunity

1. Subject to paragraph 2, a waiver of sovereign immunity from

jurisdiction of the courts specified in Article 47 or 48 or relating to enforcement of

rights and interests relating to an aircraft object under this Schedule shall be

binding and, if the other conditions to such jurisdiction or enforcement have been

satisfied, shall be effective to confer jurisdiction and permit enforcement, as the

case may be.

2. A waiver under the preceding paragraph must be in writing and contain

a description of the aircraft object.

Article 51

Jurisdiction in respect of insolvency proceedings

The provisions of this Chapter are not applicable to insolvency proceedings.

Article 52 to Article 55 have been intentionally omitted as they are not

applicable to Malta.

CHAPTER XII

Final Provisions

Article 56

Effective date of this Schedule

This Schedule shall take effect on the effective date. The "effective date" is

first day of the month following the expiration of three months after the date on

which Malta deposits its instrument of accession to the Cape Town Convention

with the depositary therefor.

Article 57

Transitional provisions

1. This Schedule does not apply to a pre-existing right or interest, which

retains the priority it enjoyed under the applicable law before the effective date of

this Schedule.

2. Nothing in the preceding paragraph or otherwise in this Schedule shall

prevent parties to an agreement and related documents, by affirmative act, from re-

constituting a pre-existing right or interest as an international interest and

otherwise bringing it within the scope of this Act.

3. A priority non-consensual right or interest shall retain its priority over

an international interest, to the extent specified in Article 45(1), which is registered

prior to the effective date.

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(1)

In this Act, unless the context otherwise requires

"aircraft" means any machine that can derive support in the

atmosphere from the reactions of the air other than the reactions of

the air against the earth’s surface as may be illustrated or amplified by

the Minister by regulations but shall exclude aircraft used in the

military, customs or police services of any State;

"the Aircraft Protocol" and "the Protocol" mean the Protocol to

the Convention on International Interests in Mobile Equipment in

Matters Specific to Aircraft Equipment that was opened for signature

at Cape Town on 16 November 2001, the text of which is

consolidated with the text of the Cape Town Convention and

substantively reproduced in the First Schedule reflecting the

Implementing Law;

"air service" means a flight or a series of flights carrying

passengers, cargo and, or mail for remuneration and, or hire as

defined in Article 2(4) of Regulation (EC) No. 1008/2008 of the

European Parliament and of the Council of 24 September, 2008, on

common rules for the operation of air services in the Community;

"air transport undertaking" has the same meaning as is given to

it in the Civil Aviation Act;

"approved jurisdiction" means any member country of the

Organisation for Economic Co-operation and Development and any

other country approved by the Minister by notice for the purposes of

this Act;

"the Authority" means the Authority for Transport in Malta

established under the Authority for Transport in Malta Act;

"aviation undertaking" means a legal organisation established

under the laws of Malta the objects of which are

(a)

to own aircraft; or

(b)

to operate aircraft; or

(c)

to manage aircraft; or

(d)

to carry on business relating to the

(i)

financing;

(ii) insurance;

(iii) brokerage;

(iv) maintenance;

(v)

repair and overhaul;

(vi) classification; or

(vii) surveying

of aircraft, and to carry on all, or any ancillary business related

thereto;

"the Cape Town Convention" and "the Convention" mean the

Convention on International Interests in Mobile Equipment that was

opened for signature at Cape Town on 16 November 2001, the text of

which is consolidated with the text of the Aircraft Protocol and

substantively reproduced in the First Schedule reflecting the

Implementing Law;

"Certificate of Registration" means the certificate of registration

issued by the Director General in accordance with the provisions of

this Act;

"crew" means any person employed or engaged on an aircraft in

flight on the business of the aircraft;

"Declaration" means a declaration made by a State acceding to

the Cape Town Convention pursuant to a particular provision or

provisions of the Convention or its Aircraft Protocol as the case may

be;

"the Depositary" means the Headquarters of the International

Institute for the Unification of Private Law (UNIDROIT) in Rome;

"the Diplomatic Conference" means the Diplomatic Conference

held under the joint auspices of the International Civil Aviation

Organisation and the International Institute of Private Law at Cape

Town from 29 October to 16 November 2001;

"the Director General" means the Director General responsible

for Civil Aviation in Malta, and to the extent of the authority given,

any person authorised in that behalf by the Director General;

"EEA State" means a State which is a party to the EEA

Agreement;

"EEA Agreement" means the Agreement on the European

Economic Area signed at Oporto on the 2 May, 1992 as adjusted by

the Protocol signed at Brussels on the 17 March, 1993, as modified or

supplemented from time to time;

"effective date" means the date established in accordance with

article 56 of the First Schedule;

"Implementing Law" means the Model for National

Implementing Legislation prepared by the Aviation Working Group to

UNIDROIT, dated August, 2008 substantively reproduced in the First

Schedule;

"lease agreement" means an agreement by which a person (the

lessor) grants a right to possession or control for a stipulated period of

time, of an aircraft or an aircraft engine (with or without the option to

purchase) to another person (the lessee) in return for a rental or other

payment, and the terms "lease", "sub-lease", "sub-lessor" and "sub-

lessee" shall be construed accordingly and where the term "lease" is

used, it shall include a "sub-lease", where the term "lessor" is used, it

shall include a "sub-lessor", and where the term "lessee" is used, it

shall include a "sub-lessee";

"Minister" means the Minister responsible for transport, and

includes any person authorised by such Minister in that behalf;

"mortgage" means a mortgage registered in terms of this Act

and shall, where the context so requires, include an equivalent charge

registered in the International Registry in terms of the First Schedule,

and "mortgagee" shall be construed accordingly;

"National Aircraft Register" or "register" mean the register to be

maintained by the Director General in terms of article 4;

"operating agreement", for the purposes of Part II, means a lease

agreement and any other agreement by virtue of which the operation

of an aircraft is granted by an owner (or any person authorised to

grant such powers, including a lessee), to another person and under

which the possession or control of the aircraft is vested in the operator

for such purpose, and shall include a sale agreement with reserved

rights or conditions;

"operating licence" means a licence granted under article 7 of

the Civil Aviation Act to an air transport undertaking for the Cap. 232.

provision of air service as stated in the operating licence;

"operator" means the person entitled to operate the aircraft as

owner, or under an operating agreement;

"registrant" means that person in whose name an aircraft is

registered in the National Aircraft Register;

"resolution"

means

a

resolution

of

the

House

of

Representatives;

"security interest" means an interest granted in terms of a

security agreement drawn up to secure the rights of -

(a)

a person who is a conditional seller under a title

reservation agreement; or

(b)

the rights of a person who is a lessor under a lease,

and which is recognised and regulated in terms of article 41;

"temporary title", for the purposes of Part II, means a lease

agreement, an operating agreement, or similar agreement;

"undertaking" has the same meaning as assigned to it in article 2

of the Companies Act.

(2) The definition of the words referred to in the preceding

subarticle is supplemented by definitions in article 1 of the First

Schedule for the purposes of the said Schedule. Where words used in

this Act are defined in the First Schedule, they shall apply also to the

interpretation of the provisions of this Act.

(3) Where this Act refers to a matter which may be prescribed,

unless this Act expressly designates the person authorised and the

manner thereof, such matter may be prescribed by the Minister

through regulations, by the Authority through directives, or by the

Director General through guidelines or any one or all of them as may

be determined, provided that in the case of any conflict, a regulation

by the Minister shall prevail over a directive, and a directive shall

prevail over a guideline.

(4) When the Implementing Law applies, it shall prevail over

any other part of this Act and over any other law, in case of conflict.

(5) To the extent that any matter provided for by the

Implementing Law is not regulated by this Act, then the

Implementing Law shall govern such matter and any other laws shall

be construed so as to give effect to such provisions of the

Implementing Law as may be applicable.

(6) Where this Act is silent on any matter, such matter shall be

determined in accordance with the principles reflected in other

provisions of other laws of Malta relating to aviation.

(7) This Act shall be construed consistently with Regulation

EC No 1008/2008 of the European Parliament and of the Council of

24 September 2008 on common rules for the operation of air services

in the Community.

(8) In so far as the operation of air services is carried out

outside the European Community, this Act shall be construed

consistently with the International Treaties applicable to aviation to

which Malta is a party.

PART II

REGISTRATION OF AIRCRAFT

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(Article 25 of the First Schedule)

Form of Irrevocable De-Registration and Export Request Authorisation

Annex referred to in Article 25 of the First Schedule relating to the accession

by Malta of The Convention on International Interests in Mobile Equipment

and the Protocol thereto on Matters Specific to Aircraft Equipment

{Insert Date}

To: National Aircraft Register

Re: Irrevocable De-Registration and Export Request Authorisation

The undersigned is the registered [operator] [owner] of the [insert the

airframe/helicopter manufacturer name and model number] bearing

manufacturer’s serial number [insert manufacturer’s serial number] and

registration [number] [mark] [insert registration number/mark] (together

with all installed, incorporated or attached accessories, parts and equipment,

the "aircraft").

This instrument is an irrevocable de-registration and export request

authorisation issued by the undersigned in favour of [insert name of creditor]

(the "authorised party") under the authority of (1) Article 25 of the Schedule

relating to the ratification by Malta of the Convention on International

Interests in Mobile Equipment and the Protocol thereto on Matters Specific to

Aircraft Equipment (the latter instrument, the "Protocol"), and (2) Article

XIII of the Protocol. In accordance with these Articles, the undersigned

hereby requests

(a) recognition that the authorised party or the person it certifies as its

designee is the sole person entitled to

(i) procure the de-registration of the aircraft from the National Aircraft

Register maintained by the national registry authority for the

purposes of Chapter III of the Convention on International Civil

Aviation, signed at Chicago, on 7 December 1944; and

(ii) procure the export and physical transfer of the aircraft from Malta;

And

(b) confirmation that the authorised party or the person it certifies as its

designee may take the action specified in clause (a) above on written

demand without the consent of the undersigned and that, upon such

demand, the authorities in Malta shall co-operate with the authorised

party with a view to the speedy completion of such action.

The rights in favour of the authorised party established by this

instrument may not be revoked by the undersigned without the written

consent of the authorised party.

Please acknowledge your agreement to this request and its terms by

appropriate notation in the space provided below and lodging this

instrument in National Aircraft Register.

[insert name of operator/owner]

Agreed to and lodged this

[insert date]

By: [insert name of signatory]

Its: [insert title of signatory]

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
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(1) An aircraft may be registered in Malta and be Aircraft

subject to the laws of Malta and have all the rights and privileges of a registered

this Act.

Maltese aircraft subject to the provisions of this Act and any

regulations made hereunder and any other laws as may be applicable

to it, including

(a)

the Civil Aviation Act;

(b) the Civil Aviation (Air Operators’ Certificates) Act, Cap. 218.

where relevant; and

(c)

any other law applicable to the operation of aircraft

and events occurring thereon or in relation thereto.

(2) The Authority shall be the authority for the registration of

aircraft in Malta and shall cause such registration to be recorded in a

register to be kept by the Director General, to whom all powers

relating to registration are hereby delegated.

(3) It shall also be lawful to register any aircraft which is

under construction as soon as it is uniquely identifiable, under such

conditions as the Minister may prescribe by regulations. A

description of an aircraft that contains its manufacturer serial number,

the name of the manufacturer and its model designation shall be

sufficient to render an aircraft uniquely identifiable.

For all purposes of this Act, the manufacturer of the

aircraft shall, unless expressly agreed otherwise with a buyer, be

considered to be the owner of such aircraft under construction and

shall, subject to satisfying the requirements of this Act, be entitled to

register an aircraft accordingly.

(4) The interest in an aircraft registered in terms of this Act

may be divided into shares or other interests as may be specified on

registration and the interest in the aircraft shall be noted by the

Director General pursuant to article 4(2)(b)(i) in the manner which

reflects the ownership interests in the aircraft.

An operator or a trustee who registers an aircraft may request

that his position as registrant be recorded more than once so as to

reflect underlying principals or beneficial interests.

(5) When an aircraft is registered, the engines of such aircraft

and any replacement engines may also be noted in the National

Aircraft Register at the request of the registrant and, when the engines

do not belong to the registrant, with the consent of the owner of the

said engines.

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(Article 45)

List of Sources and Materials to be used by Court

(i)

The Official Commentary by Professor Sir Roy Goode that was

prepared in response to Resolution No. 5 of the Diplomatic

Conference;

(ii)

Resolution No. 2 of the Diplomatic Conference, relating to the

establishment of the Supervisory Authority and the International

Registry for aircraft objects;

(iii) Resolution No. 3 of the Diplomatic Conference, pursuant to Article

2(3)(b) and (c) of the Convention;

(iv) Resolution No. 4 of the Diplomatic Conference, relating to technical

assistance with regard to the implementation and the use of the

International Registry;

(iv) Materials, papers, commentaries and any guidelines issued by the

International Institute for the Unification of Private Law

("UNIDROIT").

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 4 National Aircraft Register. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) There shall be a National Aircraft Register which

shall be maintained by the Director General in physical or electronic

form as may be determined by the Minister.

(2) When an aircraft is registered in terms of this Act, the

Director General shall record or note transactions or information in

accordance with this article and other provisions of this Act and in

such manner as may be prescribed from time to time. In accordance

with this subarticle

(a)

the Director General shall record the following in

the register

(i)

the physical details of the aircraft;

(ii) the physical details of the engines attached to

the aircraft and any replacement engines owned by the

registrant to the extent they are designated for use on the

aircraft;

(iii) the name and address of the registrant and in

what capacity the registrant has registered the aircraft in

terms of article 5;

(iv) the details of any mortgages registered on the

aircraft, and subsequently all transactions relating to

mortgages registrable in terms of this Act;

(v) the details of any irrevocable de-registration

and export request authorisation, or any other power of

attorney, irrevocable or otherwise, in a separate document

or as part of an agreement between the parties granted to

an owner or to a lessor of an aircraft or granted by way of

security to the mortgagee, or to a third party for the benefit

of any such person, granting powers relating to the

exercise of rights relating to the aircraft, or to the closure

of the register on behalf of the registrant and, in the event

that a mandate or power of attorney is granted for a stated

period of time after which it shall lapse, such date shall

also be recorded in the register and the registration of the

mandate shall have no effect after such date;

(vi) any other act which is to be registered in the

National Aircraft Register under the provisions of article

31 or of any other law;

(b) the Director General shall note the following matters

in the National Aircraft Register if requested to do so by the

registrant or by any other person who, with the consent of the

registrant, demonstrates an interest in such information being

entered in the National Aircraft Register

(i) the ownership rights in the aircraft or an

engine including when

1. held by a trustee, for a single interest or

more;

2. held by one or more owners;

3. divided

into

fractional

shares

or

otherwise; or

4. held under an agreement with reservation

of ownership rights or under conditions affecting

title in terms of article 31.

The information and documents which are to be

provided to the Director General relating to the above may

be prescribed from time to time;

(ii) the lessor rights relating to the aircraft or an

engine when the lessor is a person different from the

owner, although the same person may appear on the

register as lessee in terms of the sub-paragraph (iii);

(iii) the lessee rights in relation to the aircraft or

an engine and all matters relating thereto in terms of article

31;

(iv) the details of the resident agent where the

registrant is an international registrant;

(v)

information on any international interest

registered in the International Registry and the debtor

thereof.

(3) It shall not be a condition for registration that a registrant

of an aircraft shall have the ownership and, or the lessor rights in the

aircraft or its engines noted in the National Aircraft Register.

(4) Registration in the National Aircraft Register, whether by

means of a record or a notation, shall have the following legal effects

in relation to the information and the acts to which it refers

(a)

it renders such information public and the

information shall be considered to be within the knowledge of

third parties;

(b)

the acts shall be effective against third parties;

(c)

it shall create priority, according to the provisions of

this Act and applicable law, between different rights, provided

that, except as stated in article 31 and in the First Schedule, the

notation of ownership or lessee rights shall not imply any

priority over those of the holder of a registered mortgage;

(d) where expressly conditional on registration, it shall

create legal effects between the parties to certain transactions;

and

(e)

it shall have all other effects under the applicable

law.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
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(Article 16)

Part A

Table of General Classification of Aircraft

Col. 1

Col. 2

Col. 3

Col. 4

Non-mechanically

Free Balloon

{

{

driven

Captive Balloon

Lighter

Airship

than air

{ {

Mechanically

aircraft

driven

{ Glider

Non-mechanically

Aircraft

driven

Kite

Heavier

than air

Aeroplane (Landplane)

aircraft

Aeroplane (Seaplane)

Aeroplane (Amphibian

{

Aeroplane

(Self-launching motor

Mechanically

glider)

driven (flying -

machines)

Gyroplane

Helicopter

Part B

Nationality and Registration Marks of Aircraft Registered in Malta

1. The nationality marks of the aircraft shall be the number 9 followed by

the capital letter "H" in roman character and the registration mark shall be a group

of three capital letters in Roman character assigned by the Director General on the

registration of the aircraft. The letters shall be without ornamentation and the

hyphen shall be placed between the nationality mark and the registration mark.

2. The nationality and registration mark shall be painted on the aircraft or

shall be affixed thereto by any other means ensuring a similar degree of

permanence in the following manner

I. Position of Marks

(a) Flying machines and Gliders

(i)

Wings: Except on aircraft having no fixed wing surface, the

marks shall appear on the lower surface of the wing structure, and shall be on

the left half of the lower surface of the wing structure unless they extend

across the whole surface of both wings. So far as possible the marks shall be

located equidistant from the leading and trailing edges of the wings. The tops

of the letters shall be towards the leading edge of the wing.

(ii) Fuselage (or equivalent structure) or Vertical Tail Surface: The

marks shall also be either on each side of the fuselage (or equivalent

structure) between the wings and the tail surfaces, or on the upper halves of

the vertical tail surfaces. When on a single vertical tail surface they shall be

on both sides of the tail. When there is more than one vertical tail surface, the

marks shall appear on the outboard sides of the outer tails.

(b) Airships and Balloons

(i)

Airships: The marks shall be on each side of the airship and also

on the upper surface on the line of symmetry. They shall be placed

lengthwise near the maximum cross-section of the airship.

(ii) Spherical Balloons: The marks shall be in two places

diametrically opposite. They shall be placed near the maximum horizontal

circumference of the balloon.

(iii) Non-Spherical Balloons: The marks shall be on each side. They

shall be placed near the maximum cross-section of the balloon immediately

above either the rigging band or the points of attachment of the basket

suspension cables.

(iv) In the case of all airships and balloons the side marks shall be so

placed as to be visible both from the sides and from the ground.

II. Size of Marks

(a) Flying Machines and Gliders

(i)

Wings: The letters constituting each group of marks shall be of

equal height. The height of the letters shall be at least 50 centimetres.

(ii) Fuselage (or equivalent structure) or Vertical Tail Surfaces: The

marks on the fuselage (or equivalent structure) shall not interfere with the

visible outlines of the fuselage (or equivalent structure). The marks on the

vertical tail surfaces shall be such as to leave a margin of at least 5

centimetres along each side of the vertical tail surface. The letters

constituting each group shall be of equal height. The height of the marks

shall be at least 30 centimetres.

Provided that where owing to the structure of the aircraft a height of 30

centimetres is not reasonably practicable, the height shall be the greatest

height reasonably practicable in the circumstances, but not less than 15

centimetres.

(b) Airships and Balloons

The letters constituting each group of marks shall be of equal height.

The height of the letters shall be at least 75 centimetres.

III. Width and Spacing of Marks

(a) The width of each letter (except the letter I) and the length of the

hyphen between the nationality mark and registration mark shall be two-

thirds of the height of a letter.

(b) The letters and hyphen shall be formed by solid lines and shall be

of a colour clearly contrasting with the background on which they appear.

The thickness of the lines shall be one-sixth of the height of a letter.

(c) Each letter shall be separated from the letter which it immediately

precedes or follows by a space equal to half the width of a letter. A hyphen

shall be regarded as a letter for this purpose.

3. The nationality and registration marks shall be displayed to the best

advantage taking into consideration the constructional features of the aircraft and

shall always be kept clean and visible.

4. In addition to the foregoing requirements of this Schedule the

nationality and registration marks shall also be inscribed, together with the name

and address of the registered owner of the aircraft, on a fireproof metal plate

affixed in a prominent position to the fuselage or car or basket, as the case may be,

and near the main entrance to the aircraft.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
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(1) An aircraft may be registered in the National

Aircraft Register by any person referred to in article 6, upon

satisfying such requirements as are prescribed by this Act or as may

be further prescribed by regulations, and who may be

(a)

an owner of the aircraft who operates the said

aircraft; or

(b) an owner of an aircraft under construction or

temporarily not being operated or managed; or

(c)

an operator of an aircraft under a temporary title

which satisfies the conditions which may be prescribed; or

(d) a buyer of an aircraft under a conditional sale or title

reservation or similar agreement which satisfies the conditions

which may be prescribed and who is authorised thereunder to

operate the aircraft.

(2) For the purposes of subarticle (1)(c) and (d), the Director

General shall exercise his discretion as to whether the operator’s

agreement qualifies to register an aircraft thereunder.

The information and documents which are to be provided

to the Director General as evidence of the right to operate the aircraft

may be prescribed from time to time.

(3) Where the applicant for registration of an aircraft is a

person enjoying a temporary title, whether or not an unqualified

person holds any interest therein by way of ownership, the aircraft

may be registered in the name of that person upon the Director

General being satisfied that the aircraft may otherwise be properly so

registered, and, subject to the provisions of this article, the aircraft

may remain so registered for the duration of the temporary title.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
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(Article 61)

Amendments of Laws

Second Column

1. In article 273 thereof, paragraph (i) shall be renumbered as paragraph

(j) and immediately after paragraph (h) there shall be added the following

new paragraph

"(i) warrant of arrest of aircraft;".

2. In Sub-title V of Title VII of Part I of Book Second thereof, for the

words "OF COURT APPROVED SALES FOR SHIPS AND VESSELS"

there shall be substituted the words "OF COURT APPROVED SALES FOR

SHIPS, VESSELS AND AIRCRAFT".

3. Article 358 thereof shall be amended as follows

3.1. in the marginal note thereto, immediately after the words "or

vessel" there shall be added the words "or aircraft"; and

3.2 for the words "of a ship or vessel" there shall be substituted the

words "of a ship or vessel or aircraft".

4. In article 359 thereof, immediately after the words "or vessel" there

shall be inserted the words "or aircraft".

5. In article 362 thereof, immediately after the words "or vessel" there

shall be inserted the words "or aircraft".

6. In article 364 thereof, for the words "ship or vessel", wherever they

appear, there shall be substituted the words "ship or vessel or aircraft".

7. Sub-title XI of Title VII of Part I of Book Second thereof shall be

renumbered as Sub-title XII and article 388E shall be renumbered as article

388G.

8. Immediately after article 388D thereof, there shall be inserted the

"Sub-title XI

OF THE EXECUTIVE WARRANT OF ARREST OF AIRCRAFT

388E. An executive warrant of arrest of aircraft is effected

by

application in terms of articles 865D and 865F.

388F. (1) The court shall, when a demand is made for the

issue of an executive warrant of arrest, establish whether it

shall order the sale of the said aircraft or fix a time-limit

within which the debtor is to pay the amount due or remedy

the default which in any case shall not be a term exceeding

thirty calendar days from the date of the application.

(2) When the court orders such sale, it shall proceed

according to the procedures laid down in the provisions

relating to judicial sale by auction.

(3) When the court fixes a time limit within which the

debtor is to pay, it shall order the executive warrant to be

definitely in force until payment of the amount due, or the

performance of the obligation is effected.

(4) When the said time limit passes without any effect

the court shall, on a demand to be made by the interested

party, order the sale to take place according to the provisions

of subarticle (2).".

9. Immediately after article 742D thereof, there shall be added the

following new articles

Second Column

742E. (1) Save as otherwise provided by law, the civil

courts of Malta shall have jurisdiction in rem against aircraft

in the following claims

(a) any claim to the ownership, or title to or of

an aircraft, or to the ownership of any share therein;

(b) any claim for possession of the aircraft;

(c) any claim in respect of a mortgage or

equivalent international interest;

(d) any claim giving rise to a special privilege

in terms of article 42(1) of the Aircraft Registration

Act;

(e) any claim based on a registered non-

co nsen su al r igh t or in teres t r egis ter ed in the

International Registry in terms of the First Schedule

and article 42(2) of the Aircraft Registration Act for

which the owner of the aircraft would be liable in

personam;

(f) any claim in the nature of salvage in respect

of an aircraft;

(g) any claim in the nature of towage in respect

of an aircraft;

(h) any claim in the nature of pilotage in

respect of an aircraft.

(2) The reference in subarticle (1)(f) to claims in the

nature of salvage includes a reference to such claims for

services rendered in saving life from an aircraft or in

preserving cargo, apparel or wreck as, under article 14 of the

Civil Aviation Act, are authorized to be made in connection

with an aircraft.

(3) For the purposes of subarticle (1)(g) and (h),

"towage" and "pilotage" mean towage and pilotage while the

aircraft is waterborne.

742F. (1) An action in rem may be brought against the

relevant aircraft before the civil courts of Malta on a claim

mentioned in article 742E when

(a) the claim arises in connection with that

aircraft;

(b) the person who would be liable on the claim

for an action in personam ("the relevant person")

was, when the cause of action arose, the owner or

lessee of, or in possession or in control of, the

aircraft, if at the time when the action is brought the

relevant person is either an owner or beneficial owner

of that aircraft or the lessee of that aircraft under a

dry lease agreement; and

(c) the relevant threshold for the issue of a

warrant of arrest of aircraft as provided in article

865E is satisfied.

(2) Notwithstanding the previous subarticle, in the case

of a claim in terms of article 742E(1)(e), (g) and (h) in respect

of an aircraft, an action in rem may be brought before the

civil courts of Malta against the aircraft only if, at the time

when the action is brought, it is beneficially owned by the

person who would be liable on the claim in an action in

personam.".

Second Column

10. In subarticle (1) of article 830 thereof, paragraph (g) shall be

renumbered as paragraph (h) and immediately after paragraph (f) there shall

be inserted the following new paragraph

"(g) warrant of arrest of aircraft;".

11. Immediately after article 865 thereof, there shall be inserted the

"Sub-title IVA

OF THE WARRANT OF ARREST OF AIRCRAFT

Object of warrant.

865A.(1) A precautionary warrant of arrest of any aircraft

may solely be issued to secure a debt or claims, whether in

personam or in rem which could be frustrated by the

departure of the said aircraft, and no other warrant may be

issued against an aircraft unless it is a warrant of arrest.

(2) The provisions of article 843 shall apply to the

warrant.

(3) For the purposes of this Code, the word "aircraft"

shall comprise -

(a) all data, manuals and technical records, and

(b) the airframe, all equipment, machinery and

other appurtenances as accessories belonging to the

aircraft, which are on board or which have been

temporarily removed therefrom,

(c) if in Malta, any engines owned by the

owner of the aircraft whether attached to the aircraft

or not, as well as any replacement engines which are

designated for use on the aircraft and owned by the

owner of the aircraft but temporarily not attached to

the aircraft,

but shall not include any engine which is attached to the

aircraft and which does not belong to the owner of the

aircraft, which engine shall be subject to such orders of the

court as are appropriate to the protection of the rights of the

owner of the engine and the safe operation of the aircraft in

accordance with the agreement relating to such engine.

865B.(1) The warrant of arrest shall have the effect to seize

Warrant’s effects.

the aircraft from the debtor and also to attach the same in the

hands of the authority where the property is, and also to order

that the said authority shall not release such aircraft or allow

the debtor to divest himself in any way from the same in

whole or in part or to give or surrender to any person any

rights on the same.

(2) The warrant is executed for all effects of the law

when notice is served on the executive officer of the authority

which has the aircraft in its hands or under its power or

control.

(3) A copy of the warrant of arrest shall also be served

on the person whose aircraft is arrested or the aircraft

commander or other person in charge of the aircraft or the

agent of such aircraft.

Second Column

865C.(1) The authority which has in its hands or under its

control the aircraft against which such warrant of arrest has

been issued, shall take all necessary measures to display the

court order for the general attention of third parties.

(2) For the purposes of this warrant the Authority for

Transport in Malta, or such other authority or person as may

be designated from time to time by the Minister shall be

deemed to be the authority having in its hands or under its

power or control the arrested aircraft.

(3) An aircraft is deemed to be in the power or control of

the Authority for Transport in Malta as soon as the aircraft

enters Maltese airspace.

(4) All expenses as may be necessary for the

preservation of the arrested aircraft shall, from the moment

that the warrant of arrest is served on the Authority for

Transport in Malta, be borne by the party issuing the warrant,

saving his right to recover such expenses together with his

claim.

865D.(1) A warrant of arrest shall be sued out by means of

an

application on a form to be prescribed by the Minister

appropriate form.

responsible for justice, on which form there shall be included

a court decree by virtue of which the necessary orders are

given and issued.

(2) The court executive officer shall have the power to

adopt, subject to such directives as may be given by the Court

or the Registrar of Courts, all such measures as may be

deemed necessary for the execution of the warrant of arrest.

865E. A warrant may be demanded and obtained before the

Co

urt of Magistr ates (Malta) o r b efor e the Co urt of

Magistrates (Gozo) in its inferior jurisdiction or before the

First Hall of the Civil Court in security of a debt or any other

claim whatsoever amounting to not less than seven thousand

euro and in case of an aircraft being used for public air

transport of passengers or goods, not less than one million

euro, provided that these limitations on the amount of the

claim do not apply to holders of a mortgage or an

international interest when such mortgage or interest has been

registered or is recognized under Part IV or in accordance

with Part VI of the Aircraft Registration Act, 2010.

865F. The application for the issue of a warrant of arrest

shall, under pain of nullity, state in a clear manner such

particulars as may enable the identification of the aircraft, the

name of the authority in whose hands or under whose power

or control the arrested aircraft may be, as well as the place

where the aircraft is to be found.

Penalty in case of

865G. Where it is found that the warrant was obtained upon

malicious demand a demand maliciously made, the penalty in terms of article

836(8) shall not be less than eleven thousand and six hundred

euro.

865H. It shall be lawful for the court, on good cause being

shown, upon the demand by application by a person whose

aircraft is detained or by the commander of the aircraft, or by

any person being in charge thereof or by its agent, order the

party suing out the warrant to give, within a time fixed by the

court, sufficient security, in an amount not less than eleven

thousand and six hundred euro, for the payment of the

penalty, damages and interest and, in default, to rescind the

warrant.

Second Column

865I. (1) No warrant shall be issued against any aircraft

wholly

chartered in the service of the Government of Malta.

issue of a warrant.

(2) No warrant shall be issued against any aircraft of war.

(3) Following the arrest of an aircraft in any airport and

on the application of the Authority for Transport of Malta, a

court may, if it is satisfied that because of its cargo, or other

circumstances concerning safety, pollution, air navigation, it

is advisable that the aircraft should leave the aerodrome or

airport without delay, order that the aircraft should leave

without delay or order that the aircraft be shifted from that

airport to any other location within Malta or if not possible, to

leave Malta.

(4) Following the arrest of an aircraft in any airport or

aerodrome or Maltese airspace and on an application of the

Authority for Transport in Malta, a court may, if it is satisfied

that because of the natur e of its cargo and, or oth er

circumstances concerning safety or pollution it is advisable

that the aircraft should leave the airport or Maltese airspace,

rescind the warrant of arrest and order that the aircraft should

leave Malta and its airspace without delay.

865J. The court may order the sale of an arrested aircraft

Order for the sale

pendente

lite if it appears to the court upon the application of

a creditor that the debtor is insolvent or otherwise unlikely to

be able to continue trading and maintaining the asset. In

reaching its conclusion the court shall consider all the

circumstances connected therewith, including the nature of

the plaintiff’s claim, the defence raised against such claim, if

any, and such other steps which the debtor has taken to secure

the claim, or otherwise to preserve the asset.

865K.(1) If, notwithstanding the issue and execution of a

precautionary warrant of arrest, an aircraft is removed from

the jurisdiction of the court in breach of the warrant of arrest,

the owner, lessee or other person being in possession of the

aircraft at the time of such breach shall be jointly and

severally liable to a penalty of one hundred and twenty

thousand euro payable to the party issuing the warrant.

(2) The liability for the payment of a penalty arising

under this article shall be without prejudice to any other

possible sanction arising under the provisions of Title XVII

of Book Third of this Code.".

1. For article 1740B thereof, there shall be substituted the following

1740B. Any transfer which is -

(a) a settlement of property under trusts to a

trustee or a distribution or a reversion of property

from a trustee pursuant to any trust; or

(b) an endowment of property to a foundation

or a distribution or a reversion of property from a

foundation pursuant to its terms;

(c) a gratuitous assignment, transfer or

contribution of capital, cash or any other assets by an

undertaking to another undertaking where both

undertakings are either controlled or beneficially

owned, directly or indirectly, to the extent of more

than fifty per cent by the same persons

Second Column

Provided that such assignment, transfer or

contribution shall on the pain of nullity be expressed

in writing; or

(d) a grant of security by title transfer for the

performance of an obligation, and any transfer of

such property back to the transferor upon the

performance of the obligation,

shall not be governed by the provisions of this Title and in

particular shall not be subject to the formalities required by

article 1753

Provided that where the transaction consists in or

includes a transfer of immovable property in Malta, the

transfer of such immovable property only shall remain

subject to the formalities required by article 1753(1).".

2. In article 1857 thereof, immediately after subarticle (2) there shall be

added the following new subarticle

"(3) An irrevocable mandate granted by way of security as specified in

article 1887(1) shall be granted in writing on pain of nullity.".

3. In article 1866 thereof, for the words "of the Code of Organization and

Civil Procedure." there shall be substituted the words "of the Code of

Organization and Civil Procedure: provided that a mandatary under an

irrevocable mandate granted by way of security may sue on behalf of the

mandator irrespective of this provision in order to protect or enforce the

interests secured by the mandate."

4. Article 1870 thereof shall be amended as follows

(a) the present article shall be renumbered as subarticle (1) thereof;

and

(b) immediately after subarticle (1) thereof, as re-numbered, there

shall be added the following new subarticles

"(2) The powers of the mandator in relation to the subject matter

of the irrevocable mandate by way of security may be suspended by

express agreement for the duration of the mandate.

(3) Such mandates may be registered in a public register. In

this article “public register” means

(a) where the subject matter of the mandate is a ship or

rights related or connected therewith, the Register of Maltese

Ships and by means of an annotation;

(b) where the subject matter of the mandate is an aircraft or

an aircraft engine or rights related or connected therewith, the

National Aircraft Register and by means of an annotation; and

(c) in all other cases, the Public Registry by means of a

note,

and in such case it shall have effect in relation to third parties and

any exercise of any such powers by the mandatary as are suspended

shall not have any effect except when done with the written consent

of the mandatary.".

5. Article 1886 thereof shall be renumbered as subarticle (1) and

immediately thereafter there shall be added the following new subarticles

"(2) An irrevocable mandate by way of security shall not terminate

upon the events stated in subarticle (1) and shall continue to be binding on,

or continue for the benefit of, the heirs or liquidator (or similar officer) of

the mandator, or of the mandatary, or the creditor if a different person, in

accordance with its terms. Neither shall such an irrevocable mandate

terminate on such events when they occur in relation to a mandatary who is

a different person than the creditor in whose favour the mandate has been

granted.

Second Column

(3) The creditor whose interests are secured through the mandate, or

his heirs, or liquidator (or similar officer), may appoint a substitute to act as

mandatary, including himself, or may apply to the Court of voluntary

jurisdiction to make such appointment.".

6. Article 1887 thereof shall be amended as follows

6.1 for subarticle (1) thereof there shall be substituted the following

"(1) The mandator may revoke the mandate whenever he

chooses, unless the mandate is expressly stated to be granted by way of

security in favour of the mandatary or of any other person, and that it is

irrevocable, in which case it may only be revoked with the consent of

the person whose interest is secured thereby. The mandatary under such

an irrevocable mandate granted by way of security, shall be bound to act

in a fair and reasonable manner when exercising the powers granted

thereunder, provided that a mandate by way of security which is

irrevocable may only be granted when the object to which it relates is

property which is movable, by nature or by operation of law, and it shall

not be permissible for such a mandate to be issued with reference to

immovable property or rights therein.";

6.2 subarticles (2) and (3) thereof shall be renumbered as subarticles

(3) and (4) respectively;

6.3 immediately after subarticle (1) thereof there shall be inserted the

following new subarticle

"(2) Where powers are exercised under an irrevocable mandate

granted as stated above and form part of or are granted pursuant to or in

the context of a written agreement governing a broader relationship, the

mandatary shall furthermore be bound to exercise such powers in

accordance with the terms and subject to the conditions of such

agreement."; and

6.4 in subarticle (3) thereof, as re-numbered, for the words "The

appointment of" there shall be substituted the words "Except as provided in

the preceding subarticle, the appointment of".

7. Article 1995 thereof shall be amended as follows

7.1 the existing article shall be renumbered as subarticle (1);

7.2 in subarticle (1) thereof, as renumbered, immediately after the

words "causes of preference" there shall be added the words "or there shall

have been a transfer of any property by way of security or a transfer under

a security trust for such purpose in accordance with this Code";

7.3 immediately after subarticle (1) thereof, as renumbered, there

shall be added the following new subarticles

"(2) Property is lawfully transferred by way of security, if made

in accordance with article 2095E or articles 2095F to 2095I and such

transfer shall not be subject to re-characterisation as any other contract.

(3) Creditors of the transferor may impeach any transfer by way

of security as aforesaid if the transfer is made in fraud of their rights.

For the purposes of article 1144 such transfers shall be considered to be

onerous and in case of a security trust, the creditor must prove fraud on

the part of both the transferor and the transferee but it shall be sufficient

if he proves fraud either on the part of the security trustee or on the part

of the beneficiary whose interest is being secured thereby.".

8. For subarticle (2) of article 1997 thereof, there shall be substituted the

following

"(2) The said provisions shall not apply to ships or aircraft, or to debts

to which ships or aircraft may be subject except so far as they are

consistent with the provisions of the Merchant Shipping Act or of the

Aircraft Registration Act, 2010, as the case may be.".

9. Article 2042 thereof shall be amended as follows

Second Column

9.1

for paragraph (e) thereof there shall be substituted the following

"(e) an indication as to whether interest on the debt has been

agreed upon or not;"; and

9.2 paragraph (f) thereof shall be deleted.

10. Article 2095 thereof shall be amended as follows

10.1 the existing article shall be renumbered as subarticle (1) thereof,

and, in the said subarticle, as renumbered, immediately after the word

"privileged" there shall be added the following proviso

"Provided that in the case of a hypothec, the above rule shall

apply with reference to interest only if the fact that interest has been

agreed upon is indicated in the note of registration of the hypothec in

accordance with article 2042(e).";

10.2 immediately after subarticle (1) thereof, as renumbered, there

shall be added the following new subarticles

"(2) When the note of registration of a hypothec indicates that

interest has been agreed to accrue on a debt, no additional note of

registration shall be required when any change, variation, or

amendment takes place in relation to the of rates of interest payable, the

modalities for the calculation of interest including any indices, margin,

or market mechanism.

(3) Furthermore, no additional note of registration shall be

required, for any change, variation or amendment of

(a) the repayment schedule; or

(b) the currency in which payment of the debt is to be made.

(4) The above shall apply irrespective of whether the change,

variation or amendment takes place in virtue of a public deed or a

private writing, pursuant to a term of the original agreement or as a

result of a market event.

(5) The obligations changed, varied, or amended as aforesaid

shall continue to rank in the same rank in which the principal obligation

is placed.".

11. Article 2095E thereof shall be amended as follows

11.1 in subarticle (1) thereof, immediately after the words "class or

classes of creditors", there shall be added the words "by either constituting

security in favour of the trustee in the manner provided for by applicable

law of Malta relating to particular types of security, or, by the settlement of

property in favour of the trustee under written terms governing the trusts

intended to operate for the purposes of providing security";

11.2 in subarticle (3) thereof, for the word "assignment" there shall be

substituted by the word "title";

11.3 in subarticle (4) thereof, immediately after the words "for the

purposes of article 2042" there shall be added the words "in lieu of the

requirements of paragraphs (c), (d) and (e) of article 2042";

11.4 subarticles (5) to (12) thereof shall be renumbered as subarticles

(6) to (13) respectively;

11.5 immediately after subarticle (4) thereof, there shall be inserted the

following new subarticle

"(5) The Minister responsible for Justice may make regulations

to regulate the operation of security granted in favour of a security

trustee to secure future debts."; and

11.6 immediately after subarticle (13) thereof, as renumbered, there

shall be added the following new subarticle

Second Column

"(14) The provisions of article 1967 shall apply mutatis mutandis

where a pledge is granted by the debtor or a third party for the debtor, to

a security trustee, for the benefit of any creditor or creditors, present or

future, or in favour of a class or classes of creditors.".

12. Immediately after article 2095E thereof, there shall be added the

"Title XXIIIB

OF SECURITY BY TITLE TRANSFER

2095F.(1) Security by title transfer is a contract whereby

the debtor, or a third party for the debtor, transfers or assigns

movable things, whether by nature of by operation of law, so

as to secure a present or future obligation, to

(a) a creditor or creditors, present or future; or

(b) to a third party, who shall thereby be

considered to be a trustee for the benefit of a creditor

or creditors, present and, or future and subordinately

for the debtor in accordance with article 2095E.

In this title

(i) the term "creditor" shall include both the

creditor and a third party security trustee for the

creditor; and

(ii) the terms "debtor" and "transferor" may

refer to the same person or to different persons

depending on the circum stances and the term

"debtor" shall include the transferor unless the

context requires otherwise.

(2) Subject to the observance of such formalities as may

be required in case of particular types of movable property,

ownership of the property is acquired by the creditor as soon

as the debtor and, or the transferor and the creditor enter into

an agreement in writing designating

(a) the property being transferred;

(b) the secured obligations, which may be

existing or future obligations; and

(c) the rights of the transferee in case of default

as stipulated in the agreement.

(3) For the purposes of the preceding subarticle -

(a) when the property being transferred

consists of debts and other monetary obligations the

inclusion in the agreement of a list of debts arising

from a written or legally equivalent instrument shall

be sufficient;

(b) when the transfer of property refers to a

large amount of debts or to a class or classes of debts,

present or future, the provisions of articles 9 to 14 of

the Securitisation Act shall apply mutatis mutandis

with such amendments as are required paying regard

to the fact that in lieu of a transfer for the purposes of

a securitisation, the parties may agree to a transfer of

the same assets for the purpose of security.

(4) Such agreement may also designate

(a) the rights of the transferee in the event of a

breach of the secured obligations; and

Second Column

(b) the rights of the transferor in case of

payment or other extinction of the secured

obligations; and

(c) the manner in which the property is to be

valued when rights of sale or set-off are exercised by

the creditor,

and such agreement shall take effect in accordance with its

terms. In the absence of terms of agreement on the matters

stated in this subarticle, the provisions of this title shall apply.

(5) Where the property being transferred by way of

security is of a kind which may be transferred by mere

delivery, an agreement in writing as provided for in subarticle

(2) shall be required for the transfer of such property. Without

prejudice to the rights of third parties acting in good faith, the

creditor may agree that the debtor use the property so

transferred.

(6) A transfer by way of security of debts and other

rights shall be operate between the parties from the moment

when the agreement referred to in subarticle (2) is made.

(7) A transfer by way of security shall operate as a

transfer with regard to third parties

(a) in the case of debts and rights against an

obligor, when notice is given in accordance with the

article 1471 or the obligor of the assigned right has

acknowledged the assignment; or

(b) in the case where the rights consist of

property, where there is no obligor and where the title

to which is registered in a public registry, the effects

of the transfer shall arise when the transfer is

registered in the relevant register.

For the purposes of article 1471, notice in writing

may be given by any means, including by electronic means,

and it shall not be required that notice be made by judicial

act.

(8) Apart from the case contemplated in article 1472(b),

when a further assignment of a debt or other right is made by

way of security and is notified to the debtor or registered in

accordance with subarticle (7) of this article, the effects of the

subsequent assignment shall arise only on the termination of

the effects of the prior assignment and the rights of the

subsequent assignee are conditional thereon. Except where

the subsequent assignment is made with the written consent

of the prior assignee and subject to the terms of such consent,

the prior assignee shall have no obligations towards any

subsequent assignee.

(9) The consideration for a transfer by way of security

shall be the grant and acceptance of security, and the

provisions of Title VI of Part II of Book Second as to "price"

shall not apply to such transfers.

(10) For all effects and purposes, the creditor to whom the

property has been transferred shall be considered to be the

absolute owner of the property so transferred and such

property shall not form part of the patrimony of the debtor.

(11) A transfer made in accordance with the provisions of

this title

(a) shall not be subject to re-characterisation as

any other contract and shall take effect in accordance

with its terms; and

Second Column

(b) shall be enforceable in accordance with the

terms of an agreement made in accordance with

sub ar ticle (2) and th e pr ov is io ns of th is title

notwithstanding the bankruptcy or insolvency of the

debtor of the debt or the grantor of security by title

transfer or the commencement or continuation of any

in so lv ency or win d in g u p p r oceed in g s o r r e-

organisation measures.

(12) The fruits of the property transferred by way of

security shall be deemed to form a part of the property and

shall be subject to all the rights of the creditor as stated in this

Title.

2095G.(1) The terms of the agreement relating to the

transfer of property by way of security shall regulate all

matters between the debtor, the transferor and the creditor,

including the rights of the creditor to enforce the security in

case of default.

(2) Subject to the terms of the agreement between the

parties, in the event of a default, the creditor shall, upon

giving notice in writing to the debtor and the transferor of

property by way of security, if different, be entitled to realise

the property transferred in one of the following ways

(a) by sale; or

(b) by setting off or netting their value, and

applying their value in discharge of the secured

obligations.

(3) Set-off or netting shall only be possible if it has been

expressly agreed to in the agreement between the parties.

(4) Where a creditor exercises his rights as aforesaid, he

must exercise such rights in a commercially reasonable

manner, shall be bound by fiduciary obligations in that regard

and shall be bound to account to the debtor as to the value

used for such enforcement.

(5) Without prejudice to the title vested in the creditor,

the creditor shall be entitled, in any case, to demand the sale

by judicial auction of the property transferred by way of

security and the provisions of Sub-title II of Title VII of Part I

of Book Second of Code of Organisation and Civil Procedure

on Judicial Sales by Auction shall apply with such variation

as is required due to the context.

(6) Where the property transferred by way of security is

in the possession of the debtor, the Court shall afford such

support to the creditor as may be necessary to take possession

of the property for the purposes of any mode of enforcement

as aforesaid.

(7) Any enforcement pursuant to the preceding

subarticles shall be without prejudice to the rights of any

third party who may have acquired any personal or real rights

over the property from the debtor prior to the transfer by way

of security, or, if after, with the prior written consent and

participation of the creditor; provided that when the security

arrangement is not binding with regard to third parties or

otherwise publicly known through -

(a) registration of the transfer in a public

registry; or

(b) notice to or acknowledgement by the debtor

of a debt in accordance with article 1471 (as modified

by subarticle (7) of article 2095F), or

Second Column

(c) transfer of possession of the property to the

creditor or a security trustee,

any person acquiring rights over the said property in good

faith for value shall also be protected.

(8) It shall be lawful for the parties to enter into a close

out netting agreement in accordance with the Set-Off and

Netting on Insolvency Act to be applied when a default takes

place.

2095H.(1) When the creditor has taken possession of the

property so transferred, subject to the terms of the transfer

agreement, he shall not be permitted to make use of the

property unless expressly permitted to do so by the agreement

between the parties and shall be liable to the transferor for the

loss or deterioration of the property arising from his

negligence.

(2) Where the property transferred by way of security is

fungible in nature

(a) the parties may agree that the creditor to

whom the property has been transferred may enter

into transactions involving its sale and may also use it

as security for the performance of his obligations;

(b) the obligation to return the property shall

be to return equivalent property but may be extended

to return equivalent value.

(3) The provisions on fiduciary obligations in this Code

shall apply to the creditor who shall be considered as having

acquired title and possession as a fiduciary for the sole

purposes of -

(a) retaining the title and, if so agreed,

possession of property as security for the

performance of the secured obligations,

(b) of applying such property or its value in

settlement of the secured obligations in case of

default; and

(c) of returning the property, or its equivalent

in case of fungible property, on performance of the

secured obligations or of returning any excess in

value to the transferor in case of enforcement,

and notwithstanding the obligation to avoid conflicts of

interest he shall be entitled to act in his own interests for the

above purposes.

(4) Notwithstanding the fact that the creditor is the

absolute owner of property transferred by way of security,

any exercise of ownership rights other than as may be

provided for in the agreement between the parties or as herein

provided shall be a breach of fiduciary duties for which the

creditor shall be liable toward the debtor in accordance with

this Code.

Second Column

(5) When enforcement is through set-off by the creditor,

upon notice of enforcement given in accordance with article

2095G(2), the creditor shall become the absolute owner of the

property and shall be released of all fiduciary duties arising

from the transfer agreement and these provisions. The value

of the obligation of the creditor to return the property

transferred by way of security which is set-off against the

rights of the creditor to payment of the obligation due to him

shall be established by agreement with the transferor or

established in the manner agreed between the parties and in

the absence of such agreement, at the market value if there is

one, or where there is no market value, at a price established

by an independent person competent to value such property.

(6) Upon a notice of enforcement through sale of the

property in accordance with article 2095F(2), the creditor

shall have the power to sell the property -

(a) in the manner agreed with the transferor or,

in the absence of agreement, in the manner the

creditor considers most appropriate and

commercially reasonable;

(b) for a price established by agreement with

the transferor or established in the manner agreed

between the parties and in the absence of such

agreement, at the market value if there is one, or

where there is no market value, at a price established

by an independent person competent to value such

property; and

(c) when the property is to be sold through a

judicial sale by auction, at a price and in accordance

with applicable provisions of law,

and the creditor shall be the sole person entitled to receive the

proceeds of sale.

(7) Upon the events in the preceding subarticles taking

place, the creditor shall allocate to and set-off against the

obligation secured -

(a) in the case referred to in subarticle (5), the

value of the obligation to return the property set-off

against the secured obligations;

(b) in the case referred to in subarticle (6), the

proceeds of sale received by the creditor shall be set-

off against the secured obligations,

and any excess shall be immediately paid over to the

transferor.

(8) If it is necessary to properly realise the commercially

reasonable value, the creditor shall be entitled to sell or set-

off as aforesaid all the property transferred by way of security

even if it exceeds the value of the secured obligations.

Otherwise, the creditor shall only sell or set-off as much as is

required to cover the secured obligations, interest and charges

and return the excess property to the transferor.

(9) Except where special laws permit otherwise, it shall

not be lawful for the debtor to agree on the value of property

transferred by way of security for the purposes of

enforcement before the receipt by him of a notice of sale or

set-off provided for in article 2095G(2); provided it shall be

lawful to agree on a value to be established by reference to a

market or on valuation mechanisms to be followed in case of

disagreement between the parties.

Second Column

(10) The Court may, a posteriori, on the demand of the

d ebto r v er ify the com m er cial r eason ablen es s of the

realisation of the property or the valuation used in terms of

the preceding provisions. Upon such review the Court may, if

it finds that the realisation was not carried out in accordance

with the agreement between the parties or, absent terms of

agreement, in a commercially reasonable manner or at a fair

value, condemn the creditor to pay damages to the transferor

and, or the debtor for the losses suffered by his actions.

2095I.(1) When the debtor has performed the secured

obligations the creditor is bound absolutely to return the

property to the transferor by carrying out such formal and

others acts as may be required.

(2) Except as otherwise agreed, it shall not be lawful for

the transferor to demand the partial return of the property

transferred by way of security on the partial fulfilment of the

secured obligations and the creditor is only obliged to return

the property so transferred to the transferor, when the debtor

has fully performed the secured obligations.

(3) The terms of any undertaking relating to the return of

property transferred in accordance with this Title shall be

enforceable in accordance with its terms and the provisions of

article 1357 shall not apply.

2095J. (1) Nothing in this Title shall limit or affect the

application of the laws of Malta which may implement the

Financial Collateral Arrangements Directive (2002/47/EC),

as the same may from time to time be amended, in so far as it

applies to particular property which may be the subject of a

title transfer financial collateral arrangement.

(2) A transfer of an obligation by way of security shall

not affect the operation or effect of the legal or contractual

terms of the underlying debt or other right being the property

transferred by way of security.

(3) A debtor of a debt or other right may, in accordance

with article 1996A, validly waive his rights of set-off or other

defence vis-a-vis his immediate creditor when such debt or

other obligation is the subject of a transfer by way of security

and such debtor shall not, thereafter, be entitled to raise any

defence against any claim made by a transferee of the

assigned debt and this notwithstanding the absence of any

notice or acknowledgement in terms of article 1471.

(4) The provisions of article 1483 shall not apply in the

case of an assignment by way of security.".

The Aircraft (Application of Laws) Ordinance shall be revoked.

1. Article 2 thereof shall be amended as follows

1.1. the definition "air service licence" shall be deleted and for the

words "air service licence" or "air services licences", wherever they occur

in the principal Act and in any regulations or Order made thereunder, there

shall be substituted the words "operator licence" or "operator licences"

respectively; and

2.2. immediately after the definition "Minister" there shall be inserted

the following new definition

" "operating licence" means a licence issued under article 7;".

Second Column

2. In subarticle (1) of article 7 thereof, for the words "a licence for any air

transport service" there shall be substituted the words "a licence to operate

any air transport service".

3. Article 15 thereof shall be deleted.

1. Article 2 thereof shall be amended as follows

1.1 immediately before the definition "Authority" there shall be

inserted the following new definition

" "approved jurisdiction" means any member country of the

Organisation for Economic Cooperation and Development and any

other country approved for the purposes of this Act by the Minister by

notice;"; and

1.2. immediately after the definition "name" there shall be inserted the

following new definition

" "Organisation for Economic Cooperation and Development"

means the Organisation for Economic Cooperation and Development

established in 1961 under the Convention on the Organisation for

Economic Cooperation and Development;".

2. Article 17 thereof shall be amended as follows

2.1 the article shall be numbered as subarticle (1), and immediately

after paragraph (e) thereof there shall be added the following new

paragraph

"(f) the details of any mandate or power of attorney, irrevocable

or otherwise in a separate document or as part of an agreement between

the parties, granted by way of security to the mortgagee, or to a third

party for the mortgagee’s benefit, granting powers relating to the

exercise of rights relating to the vessel or the closure of the register on

behalf of the registered owner or grantor, where he is not the registered

owner."; and

2.2. immediately after subarticle (1) as renumbered there shall be

added the following new subarticles

"(2) Where a mortgagor has issued a mandate or power of

attorney, whether irrevocable or otherwise, and whether in a separate

document or within an agreement between the parties, and has

submitted such mandate or power of attorney for registration to the

registrar, such power of attorney shall be registered in the register of the

ship to which it refers.

(3) The registrar shall register any notice of cancellation or

release of such mandate or power of attorney from the registry at the

request of the party authorised under the power of attorney or of the

person for whose benefit it has been granted. In the event that a

mandate or power of attorney is granted for a stated period of time after

which it shall lapse, such date shall also be recorded in the register and

the registration of the mandate shall have no effect after such date.

(4) The registrar and other administrative authorities shall

support and co-operate with the authorised party in the exercise of the

powers specified in any mandate or power of attorney entered in the

register; provided that in so far as relates to powers granted for the

benefit of holders of mortgages registered prior to the coming into force

of this article, such assistance shall be granted even if the mandate or

power of attorney is not recorded in the register and this upon the

authorities being satisfied of the authenticity of the mandate.

(5) It shall be lawful for all holders of existing mortgages to

submit for registration, at their option, any mandate or power of

attorney they have received in their favour and which falls within the

scope of this article and the registrar shall act accordingly.

Second Column

(6) The registrar shall not be bound in any manner by any

written notice from the grantor of revocation of such a mandate or

power of attorney which is stated to be irrevocable and shall not be

liable in any manner for acting upon the basis of a mandate or power of

attorney issued in accordance with this article.".

3. Immediately after subarticle (2) of article 37C thereof, there shall be

added the following new subarticle

"(3) For the avoidance of doubt, the provisions of the Companies Act

relating to insolvency shall not apply insofar as inconsistent with this Act.".

4. Article 38 thereof shall be amended as follows

4.1 for subarticle (5) thereof there shall be substituted the following

"(5) A mortgage registered under this Act may be drawn up to

secure the payment of a principal sum and interest, an account current,

as well as the performance of any other obligation, including a future

obligation due by the debtor to the creditor. It shall not be necessary to

indicate the monetary value of the indebtedness in the mortgage unless

it is intended to secure a future obligation in which case a maximum

sum by way of principal for which the mortgage is granted must be

expressly stated in the registered instrument and such sum shall be

recorded in the register by the registrar.

A mortgage to secure a future obligation may only be granted in

favour of a credit institution in an approved jurisdiction or such other

organisation as may be permitted by means of a notice issued by the

Minister.";

4.2 subarticle (6) thereof shall be renumbered as subarticle (7); and

4.3 immediately after subarticle (5) thereof there shall be inserted the

following new subarticle

"(6) The Minister may make regulations to regulate the operation

of security granted to secure future debts.".

5. Article 42 thereof shall be amended as follows

5.1 in subarticle (1) thereof, for the words "giving notice to the

mortgagor", there shall be substituted the words "giving notice in writing to

the mortgagor";

5.2 for subarticle (2) thereof there shall be substituted the following

new subarticle

"(2) A registered mortgage shall be deemed to be an executive

title for the purposes of article 253 of the Code of Organization and

Civil Procedure

(a) where the obligation it secures is a debt certain

liquidated and due and not consisting in the performance of an

act; or

(b) where a maximum sum secured thereby is expressly

stated in the instrument creating the security and such figure is

recorded in the register for public notice.".

5.3 in subarticle (4) thereof, immediately after the words "the amount

certain liquidated and due" there shall be inserted the words "or the actual

sum due when the mortgage secures a future debt within an expressly stated

maximum,".

6. For subarticle (3) of article 45A thereof there shall be substituted the

following new subarticle

"(3) Without prejudice to the generality of the foregoing, and subject

always to the provisions of subarticles (4), (5) and (6), an amendment of a

mortgage shall be effected for any one or more of the following purposes

Second Column

(a) to increase the amount of capital secured by such mortgage.

An agreement to amend and vary the rates of interest payable, the

modalities for the calculation of interest including any indices, margin,

or market mechanism, the repayment schedule or the currency in which

payment is to be made is not considered as an increase for the purposes

of this article; and

(b) to extend such mortgage to secure any other obligation of

the mortgagor, whether as principal debtor or as surety for any other

person, in favour of the mortgagee, except where the new obligation

qualifies as a future obligation of the mortgagor to the mortgagee

secured by the mortgage being within a maximum sum by way of

principal stated in the relative mortgage instrument.".

Airports and Civil 1. In article 2 thereof, for the definition "operator" there shall be

Aviation (Security) substituted the following

" "operator" in relation to any aircraft, shall have the same meaning

given to it in the Aircraft Registration Act, 2010;".

Passed by the House of Representatives at Sitting No. 237 of the 15th June,

2010. M ICHAEL F RENDO

Speaker

P AULINE A BELA

Clerk to the House of Representatives

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 6 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The following persons shall be qualified to register Qualified

any aircraft in the National Aircraft Register, whether that aircraft is persons.

used to provide air services or otherwise in a capacity referred to in

article 5

(a)

the Government of Malta;

(b) a citizen of Malta or a citizen of a Member State of

the European Union or of an EEA State, or Switzerland, having

a place of residence or business in Malta, the European Union,

the European Economic Area or Switzerland, including a person

sharing in the ownership of such aircraft by virtue of the

community of acquests subsisting between such person and a

citizen as described above in whose name the aircraft is

registered;

(c)

an undertaking formed and existing in accordance

with the laws of Malta, of a Member State of the European

Union, of an EEA State or of Switzerland and having its

registered office, central administration and principal place of

business within Malta, or the European Union, or the European

Economic Area or Switzerland, whereof not less than fifty per

cent of the undertaking is owned and effectively controlled by

the Government of Malta, or by any Member State of the

European Union, or by persons referred to in paragraph (b),

whether directly or indirectly through one or more intermediate

undertakings;

(d) a natural person who is a citizen of, or an

undertaking established in, an approved jurisdiction, other than

those mentioned in paragraphs (b) or (c), shall be qualified to

register aircraft in construction or one which is not used to

provide air services if it

(i) enjoys, to the satisfaction of the Director

General, legal capacity to own or operate an aircraft in

terms of the law under which it has been established or

registered;

(ii) complies with the requirements established

under this Act, and any regulations made or guidelines

issued pursuant thereto;

(iii) satisfies the Director General that it can and

will ensure due observance of the laws of Malta relating to

civil aviation; and

(iv) complies with the requirements applicable to

an international registrant in terms of Part III.

(2) Where the applicant for registration is a trustee, the

Director General shall pay regard to the beneficiaries of the relevant

trust to determine the eligibility of the trustee to register an aircraft

under this Act and no regard shall be paid to the nationality of the

trustee himself

Provided that the Director General shall implement

procedures to ensure the confidentiality of the information he may

obtain on the identity of the beneficiaries and shall not make any such

information available to third parties without the prior written consent

of the trustee, duly authenticated, or otherwise in accordance with the

provisions of the Professional Secrecy Act.

(3) In this Act, references to any interest in an aircraft do not

include any references to an interest in an aircraft to which a person is

entitled only by virtue of his membership of a flying club and the

references in this Part to the registrant include, in the case of a

deceased person, his heirs at law, and in the case of a body corporate

which has been dissolved, its liquidator or, until a liquidator is

appointed, each of the directors at the time of the dissolution, or

equivalent in the applicable jurisdiction.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 7 Conditions of eligibility to joint or fractional ownership. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Where the application for registration of an aircraft

is based on ownership and where interest in an aircraft is vested in

more than one person, then at least fifty per cent of the owners of the

shares in the aircraft must be eligible as qualified persons, provided

that the Minister may by regulations establish different conditions,

including different minimum thresholds on ownership participation

by qualified persons for the eligibility to register an aircraft when

owned by more than one person.

(2) The same rule shall apply when the applicant for

registration is a trustee where reference shall be made to the

beneficial interests mutatis mutandis.

(3) Where the application for registration of an aircraft is

based on the operation of such aircraft and where such operation is

being carried out by more than one person, then all the operators of

the aircraft must be eligible as qualified persons

Provided that in the case of an aircraft which is not used to

provide air services, the Minister may by regulations establish

different conditions for the eligibility to register an aircraft when

operated by more than one person.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Application for the registration of an aircraft shall Applications for

be made in writing on the prescribed form to the Director General, registration.

and shall include or be accompanied by such particulars and evidence

relating to the aircraft, the ownership, acquisition, chartering and

operation thereof and qualifications of the registrant as may be

prescribed to enable the Director General to determine whether the

aircraft may properly be registered and to enable the Director

General

(a)

to issue a Certificate of Registration; and

(b) to determine the classification of the aircraft for the

purpose of application of this Act and any applicable rules and

regulations.

(2) The Director General may from time to time issue

guidelines in order to determine the applicability of rules when an

aircraft is partly used for remuneration and, or hire, and partly not,

subject to due observance of applicable international conventions and

regulations.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 9 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Upon receiving an application for the registration of an Particulars of

aircraft and after being satisfied that the aircraft may be so registered, aircraft,

etc., to be

the Director General shall register the aircraft wherever it may be, and entered

National

shall include in the register the following particulars relating to the Aircraft

Register.

aircraft

(a)

the number of the certificate of registration;

(b) the nationality marks of the aircraft, and the

registration marks assigned to it by the Director General;

(c)

the name of the constructor of the aircraft and its

designation;

(d)

the serial number of the aircraft; and

(e)

the manufacturer, the serial numbers, and physical

details of the engines attached to the aircraft and any

replacement engines to the extent they are designated for use on

the aircraft.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 10 Certificate of Registration. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The Director General shall furnish to the person in

whose name the aircraft is registered a certificate of registration

which is not transferable, and shall include the particulars referred to

in article 9 and the date of issue of such certificate.

(2) Where an aircraft is registered by a registrant under article

5(c) or (d), every person who holds any interest by way of ownership

or title in the aircraft or a share therein may make a request in writing

to the Director General to have his name, address and ownership

interests or title noted in the certificate of registration.

(3) A certificate of registration shall be issued when an aircraft

is registered while it is still under construction, but it shall expressly

state that the aircraft is not permitted to operate until such time as it

complies with the provisions of the applicable law.

(4) A certificate of registration purporting to be signed by the

Director General or other authorized officer shall constitute prima

facie evidence that it has been so issued, and of its contents.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 11 Obligation of the registrant to notify the Director General of certain events. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Any registrant of an aircraft shall forthwith inform

the Director General in writing of -

(a)

any change in the particulars which were furnished

to the Director General upon application being made for the

registration of the aircraft or the title thereto;

(b) the destruction of the aircraft, or its permanent

withdrawal from use;

(c)

in the case of an aircraft registered pursuant to

article 5(c), the termination of the temporary title and in case of

an aircraft registered pursuant to article 5(d), any event which

brings into force the reversion of title to the seller of the aircraft

or the possession, control or operation of the aircraft to a person

other than the registrant; and

(d) where an aircraft is subject to a registered mortgage

or other security interest, any event amounting to an

enforcement thereof which has the effect of transferring the title

or the possession, control, or operation of the aircraft to a person

other than the registrant.

(2) The registrant shall provide such information as may be

requested relating to any such events within five working days of a

demand in writing from the Director General.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 12 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The Director General may, whenever it appears to him Updating of the

necessary or appropriate to do so for giving effect to this Part, or for National

Aircraft

bringing up to date, or otherwise correcting the particulars entered in Register.

the National Aircraft Register or the certificate of registration, amend

the National Aircraft Register or the certificate of registration

Provided that where there is registered in the National

Aircraft Register an aircraft mortgage the Director General shall

provide the mortgagee with fifteen days’ notice of his intent and

receive any representations from the mortgagee. The Director

General shall act in such a manner as to protect the status of the

mortgage and the rights of the mortgagee

Provided further that where there is a person recorded as

owner or lessor of the aircraft in terms of article 4(2)(b), the Director

General shall provide the owner or lessor with fifteen days’ notice of

his intent and receive any representations from the owner or lessor.

The Director General shall act in such a manner as to protect their

rights as owner or lessor as the case may be.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 13 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Subject to the provisions of this article and article Cancellation of

14, an aircraft shall not be registered or continue to be registered in registration.

Malta, and the certificate of registration shall forthwith be returned by

the registrant to the Director General for cancellation by the Director

General if

(a)

it appears to the Director General that the aircraft is

registered outside Malta and that such registration does not

cease, by operation of law, upon the aircraft being registered in

Malta;

(b) a person who is not qualified in terms of article 6

holds an interest above the applicable threshold by way of

ownership in the aircraft or share therein

Provided that where a registered mortgagee or a

holder of a security interest takes such action as is considered

necessary to protect his rights, including temporarily vesting the

aircraft in his own name or that of a special purpose vehicle for

himself for the purpose of protecting his interests, the Director

General shall not cancel the registration of the aircraft on the

basis that such person is not qualified to register such aircraft

until such time as such rights are enforced;

(c)

the operator of the aircraft, being the registrant of

the aircraft, is no longer a qualified person

Provided that if an unqualified person has been

permitted to operate a registered aircraft together with qualified

persons under specified conditions, the operation by such

person under such conditions shall be disregarded for the

purpose of this provision

Provided further that where a registered mortgagee

or a holder of a security interest takes such action as is

considered necessary to protect his rights, including temporarily

taking over the operation of the aircraft directly (if competent)

or through a competent person, nothing in this subarticle shall

require the Director General to cancel the registration of the

aircraft until such time as the aircraft has been transferred to a

third party which is not a qualified person in terms of article 6;

(d) in the opinion of the Director General, the aircraft

could more suitably be registered elsewhere;

(e)

in the opinion of the Minister, it would be

inexpedient in the public interest for the aircraft to be or to

continue to be registered in Malta;

(f)

the registrant has made a written request to the

Director General for cancellation of registration and closure of

register;

(g) it appears to the Director General that any applicable

requirements under the Civil Aviation Act or under regulations

or directives thereunder or under EU regulations, relating to the

safety of the operation or the airworthiness of that aircraft, are

not being faithfully or cannot be complied with; or

(h) it is not compliant with any applicable statutory

aircraft registration conditions in respect of aircraft noise or

exhaust gas emissions.

(2) Where the request is made by an authorised person or his

delegate in writing, pursuant to an irrevocable de-registration

authorisation or power of attorney which has been registered in the

National Aircraft Register or in the International Registry, such

request shall be acted upon in all cases.

(3) The certificate of registration of an aircraft is in any case to

be considered void if the registration of the aircraft to which it relates

is cancelled.

(4) The registration of an aircraft which is the subject of an

undischarged mortgage shall not become void by virtue of any of the

events referred to in subarticle (1), nor shall the Director General

cancel the registration of such an aircraft pursuant to this article

unless all mortgagees of that aircraft have consented to the

cancellation

Provided that in the case referred to in subarticle (1)(e), the

Minister may order that an aircraft registration be cancelled even

without the consent of any mortgagee provided that the provisions of

the following subarticles shall apply prior to the cancellation taking

place.

(5) The Director General shall give all registrants and any

mortgagees at least fifteen working days’ notice of any intent to close

the register, in terms of this article, unless the cause for such closure

is remedied within such time or such longer period expressly stated in

the notice. The Director General shall specify in the notice the reason

for the proposed closure and the expiry date for the issue to be

addressed, failing which closure will be effected.

(6) The registrant and any mortgagee may appeal to the

Administrative Review Tribunal established under the Administrative Cap. 490.

Justice Act, within fifteen working days of receiving the relevant

notice under subarticle (5) either

(a)

on the basis that it is not justified; or

(b) on the basis that effective action has been taken to

remedy the complaint and the Director General has failed to

withdraw the order to cancel.

(7) Pending the determination of an appeal under the

preceding subarticle, the Director General shall not proceed to close

the register.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 14 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In the case of cancellation of the registration of an aircraft Register closed

in terms of the provisions of article 13, the aircraft shall cease to be save

mortgages and

registered and the register of the aircraft shall be considered as closed security

interests.

except in so far as relates to any unsatisfied mortgages and other

holders of any security interest

Provided that the Director General may, without prejudice to

rights of the mortgagee, communicate independently with the

mortgagee or holder of any security interest to take all action as is

necessary, including extending the validity of the registration beyond

the stated deadline, for the orderly closure of the registry and

enforcement of the mortgage or other security interest as well as to

ensure the safe operation of the aircraft.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 15 Inspection of the National Aircraft Register. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The National Aircraft Register may, upon payment

of the prescribed fee, be inspected by any person at the offices of the

Director General subject to any conditions the Director General may

specify.

(2) The Director General may make the information in the

National Aircraft Register accessible on the internet or by any other

suitable electronic means.

(3) A transcript of the National Aircraft Register shall be

issued upon request and upon the payment of the prescribed fee.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 16 Nationality and registration marks. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The marks to be borne by aircraft registered in Malta

shall comply with this Act and particularly with Part B of the Fourth

Schedule and other regulations prescribed hereunder.

(2) An aircraft shall not bear any marks which purport to

indicate -

(a)

that the aircraft is registered in a country in which it

is not in fact registered; or

(b) that the aircraft is an aircraft used in the military,

customs or police services of a particular country if it is not in

fact such an aircraft, unless the appropriate authority of that

country has sanctioned the bearing of such marks.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 17 Fees. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

There shall be charged for the registration of an aircraft, or

of a mortgage over an aircraft, the fees as may be prescribed from

time to time by the Minister, or under any applicable laws.

PART III

INTERNATIONAL REGISTRANT

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 18 International registrants’ eligibility to register aircraft. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The provisions of this Part shall apply limitedly to

registrants of aircraft not engaged in air services.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 19 International registrant. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

A foreign national or undertaking, not being a person

mentioned in article 6(1)(b) or (c) (in this Act referred to as an

"international registrant") shall be deemed to satisfy the qualifying

requirements of article 6(d) unless the Director General has made a

declaration to the contrary; and the Director General may, before

withdrawing such declaration, impose such conditions as he may

deem fit in the circumstances that may include the provision of a

guarantee or a bond.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 20 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The international registrant is required to appoint in Appointment of

resident agent.

writing prior to registration, a resident agent who -

(a)

is habitually resident in Malta;

(b) is not interdicted or incapacitated or is an

undischarged bankrupt;

(c)

has not been convicted of any of the crimes affecting

public trust or of theft or of fraud or money laundering or of

knowingly receiving property obtained by theft or fraud; and

(d) has satisfied the Director General that he is a person

capable of carrying out the functions stated under this Act.

(2) A resident agent shall be deemed to satisfy the Director

General unless the Director General has made a declaration to the

contrary; and the Director General may, before withdrawing such

declaration, impose such conditions as he may deem fit in the

circumstances.

(3) The international registrant shall ensure that it has a validly

appointed resident agent at all times.

(4) Notices of the appointment, resignation or removal of the

resident agent shall be filed with the Director General in the

prescribed form, and where a notice of appointment is given it shall

be accompanied by the acceptance in writing of the resident agent of

such appointment.

(5) The Director General may at any time refuse or reject any

notice of an appointment which he considers is not in compliance

with this Act and in such case the international registrant shall

immediately appoint another resident agent.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 21 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

An international registrant in whose name an aircraft is, or Jurisdiction of

has been, registered under this Act, or in whose name a certificate of the

courts.

registration has been issued, shall be deemed to have submitted to the

jurisdiction of the Maltese courts in terms of article 742(l)(g) of the

Code of Organization and Civil Procedure for any action in Cap. 12.

connection with the aircraft while it is or was so registered.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 22 Functions of the resident agent. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) It shall be the function of the resident agent, on

behalf of the international registrant, to -

(a)

act as the channel of communication between the

international registrant and the Director General and other

Maltese government departments and authorities;

(b) sign and file with the Director General and other

Maltese government departments and authorities all

declarations and forms required in terms of Maltese law;

(c)

act as the judicial representative of the international

registrant for judicial proceedings in Malta, and any notice

whether by the Director General, other authority, any mortgagee

or any other holder of a security interest, is sent to the resident

agent at his last registered address, shall be deemed to have

been duly received by and notified to the international

registrant.

(2) The resident agent shall not be personally liable for non-

compliance by the international registrant with any law, unless the

resident agent has personally undertaken liability in writing or has

willfully or recklessly made a false declaration.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 23 Powers of resident agent. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Without prejudice to the express powers enjoyed by

an international registrant in his engagement, the resident agent shall

have the power, on behalf of the international registrant, to -

(a)

sign and file applications, declarations, notices,

returns and any other document required in terms of Maltese

law;

(b) apply for the registration of an aircraft under this

Act and for the closure of register of an aircraft, and to perform

any ancillary act in relation thereto;

(c)

pay all relative fees and taxes payable in terms of

Maltese law;

(d) do all other things as may be considered conducive

or ancillary for the registration of an aircraft under this Act or

for the maintenance of such registration;

(e)

do all other things as may be considered conducive

or ancillary to the cancellation of the registration of an aircraft

under this Act;

(f)

authenticate documents issued by the international

registrant; and

(g) receive formal notification on behalf of the

international registrant when notifications are required in

relation to the aircraft, under the provisions of this Act or any

agreement.

(2) The resident agent shall be deemed to have all the

necessary power to provide binding undertakings to the Director

General on matters relating to the registration of the aircraft on behalf

of the international registrant and the Director General is authorised

to act accordingly; provided that nothing in this Act shall imply any

power of a resident agent to execute any document relating to a

mortgage or security interest unless expressly authorised to do so in

writing.

(3) Except with regard to matters in relation to the registration

of the aircraft under this Act and to the maintenance of such

registration, the international registrant may restrict any of the above

powers of the resident agent

Provided that where the international registrant limits such

powers he shall file with the Director General a declaration to that

effect in the prescribed form and such limitation shall not have effect

with regard to third parties until it is so filed and recorded in the

National Aircraft Register.

(4) The resident agent may appoint in writing another person

to act in specific matters on his behalf provided that in so doing the

resident agent shall not be relinquishing the functions, powers and

responsibilities conferred on him under this Part.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 24 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A resident agent may resign by giving at least fifteen Resignation or

days’ notice (or such other shorter period as the international removal

resident agent.

registrant, the Director General and any registered mortgagee may

consent to) in writing to the international registrant, the Director

General and to any registered mortgagee.

(2) The international registrant may remove the resident agent

by giving at least fifteen days’ notice (or such other shorter period as

the Director General and any registered mortgagee may consent to) in

writing to the Director General and to any registered mortgagee.

(3) A registered mortgagee shall be deemed to enjoy the power

to appoint a resident agent on behalf of the international registrant in

case of failure of the international registrant to appoint such an agent.

(4) Where the international registrant is in default of his

obligations under this Act, the Director General may, without

prejudice to any other action that can be taken under this Act, apply to

the Civil Court, First Hall for the appointment of a curator to act as

resident agent until such time as another resident agent is validly

appointed or the aircraft ceases to be registered

Provided that any expense incurred shall be considered as

a charge due to the Director General under article 42.

PART IV

MORTGAGES ON AIRCRAFT

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 25 Aircraft as security for debts. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Aircraft constitute a particular class of movables

whereby they form separate and distinct assets within the estate of

their owners for the security of actions and claims to which the

aircraft is subject. In case of bankruptcy and, or insolvency of the

owner of an aircraft, all actions and claims, to which the aircraft may

be subject, shall have preference, on the said aircraft, over all other

debts of the estate.

(2) For the purposes of this Part, an aircraft shall comprise

(a)

all data, manuals and technical records, and

(b) the airframe, all equipment, machinery and other

appurtenances as accessories belonging to the aircraft, which

are on board or which have been temporarily removed

therefrom, and

(c)

any engines owned by the owner of the aircraft

whether attached to the aircraft or not, as well as any

replacement engines which are designated for use on the aircraft

and owned by the owner of the aircraft but temporarily not

attached to the aircraft.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 26 Types of charges on aircraft. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) An aircraft may constitute security for a debt or

other obligation either by agreement or by operation of the law as

hereinafter provided.

(2) (a)

Special privileges arise in virtue of law and no debt

or other obligation other than those specified at law shall be secured

by a special privilege.

(b) To the extent that a special privilege is subject to

registration in the International Registry, such registration shall be an

additional requirement for the continuing existence of such special

privilege.

(3) Subject to the provisions of article 31 and the provisions of

the First Schedule, engines and separate items on or in an aircraft may

themselves be subject to special privileges in accordance with the

provisions of the Civil Code, in security of the debts therein specified. Cap. 16.

(4) For the purposes of article 573 of the Civil Code, where an Cap. 16.

engine has been attached to an airframe, which is not also owned by

the airframe owner, each of the owners shall retain the ownership of

their thing and the engine shall not accede to the airframe.

Any security over the aircraft shall not extend to any

engine attached to the airframe when such engine does not belong to

the owner of the airframe who has granted the security,

notwithstanding that the engines may be specifically referred to in the

instrument of mortgage, the National Aircraft Register or elsewhere.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 27 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) All registered mortgages, any special privileges and Priority of

all actions and claims to which an aircraft may be subject shall not be claims

aircraft over all

affected by the bankruptcy and, or insolvency of the mortgagor or other

owner.

owner, happening after the date on which the mortgage was created,

or the special privilege, action or claim arose, notwithstanding that

the owner at the commencement of the bankruptcy and, or insolvency

had the aircraft in his possession, order or disposition, or was the

reputed owner thereof, and such mortgage, privilege, action or claim

shall have preference, on the said aircraft, over all other debts, claims

or interests of any other creditor of the bankrupt or of any curator,

liquidator, receiver or trustee, acting on behalf of any other creditors

Provided that such mortgagee or claimant shall contribute

to the costs of winding up, including the liquidator’s fees and

expenses in the event that he participates in the liquidation

proceedings and either

(a)

is ordered to do so by the court, which shall

determine the extent of his liability, or

(b)

he expressly agrees to do so in writing.

(2) All owners, lessors, lessees, creditors, mortgagees, holders

of security interests and any other persons having an interest in or in

relation to an aircraft may enter into an inter-creditor agreement

which shall govern the relevant relationship and shall be binding and

effective in accordance with its terms. Article 1996A of the Civil Cap. 16.

Code shall apply to such agreements.

(3) Any judicial sale proceedings instituted and any other

enforcement actions initiated by any registered mortgagee or creditor

enjoying a special privilege under article 42(1), shall not be

interrupted or in any way hindered by any curator in bankruptcy and,

or insolvency, whether voluntary or compulsory, or any liquidator,

receiver or trustee of the owner for any cause other than a cause that

could be set up by the owner of an aircraft.

(4) The provisions of the preceding subarticle shall apply

mutatis mutandis to proceedings for the termination of any agreement

or the taking of possession or control of an aircraft by the holder of a

security interest instituted against a conditional buyer or lessee.

(5) For the avoidance of doubt the provisions of the

Companies Act relating to insolvency shall not apply insofar as

inconsistent with this Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 28 Attachment and extinguishment of charges and other rights. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered mortgage shall attach to the aircraft or

share therein in respect of which it is registered until it is discharged.

(2) Where the aircraft has been forfeited under an applicable

law, the interest of the mortgagee in the aircraft shall terminate if such

person has authorised, consented to, or conspired, to the act, failure or

omission in consequence of which the aircraft is forfeited.

(3) Where an aircraft has been sold pursuant to an order or

with the approval of a competent court within whose jurisdiction the

aircraft was at the time of the sale, the interest of the mortgagees as

well as that of any other creditor in the aircraft shall pass on to the

proceeds of the sale of the aircraft.

(4) Where an aircraft has been sold by a mortgagee in

possession, in enforcement of such mortgage pursuant to his rights in

terms of this Part and it is stated in the bill of sale that the aircraft is

being sold free from such encumbrance, then -

(a)

the rights arising from such registered mortgage

shall no longer be exercisable in relation to that aircraft; and

(b) all rights of other creditors, including those of other

registered mortgagees which rank after the said mortgage shall

no longer attach to the aircraft; and

(c)

all rights of other creditors which rank before the

said mortgage shall be exerciseable against the proceeds of sale

by whosoever held, but shall no longer attach to the aircraft.

(5) The creditor selling the aircraft to enforce his mortgage

shall be bound to act in a commercially reasonable manner and shall

be bound by fiduciary duties towards the debtor and other creditors

when effecting a sale of the aircraft and shall be bound to

(a)

pay from the proceeds which he receives any

creditor who ranks prior to his rights as he may determine or as

may be determined by the court in case of disagreement; and

(b) provide information to any creditor whose rights

rank after his own rights and to the debtor for the conditions of

sale, the expenses incurred, the prior rights settled and any other

deductions from the price received.

(6) Any hypothec or privilege whether general or over

particular movables to which an aircraft may be subject under the

provisions of the Civil Code shall not continue to attach to it when the Cap. 16.

aircraft is transferred to third parties.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 29 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered aircraft or a share therein may be made Mortgage of

a security for any debt or other obligation by means of an instrument aircraft or share.

creating a mortgage in accordance with this Part (in this Act called a

"mortgage") executed by the mortgagor in favour of the mortgagee in

the presence of, and attested by, a witness or witnesses, in the form

specified in regulations.

(2) A mortgage is indivisible notwithstanding the divisibility

of the underlying debt or other obligation which it may secure.

(3) A mortgage shall attach to any proceeds from any

indemnity arising from any mishaps as well as any insurance

proceeds; provided that this provision shall not apply in relation to an

indemnity payable under a liability policy.

(4) It shall be lawful for a mortgage to be executed and

registered in favour of a security trustee appointed or acting under a

trust for the benefit of persons to whom a debt or other obligation is

due. Such security trustee shall, in any such case, be recognised as the

mortgagee of the particular mortgage and shall be entitled to exercise

all the rights in relation to that mortgage as are accorded to

mortgagees by this Act or any other enactment. Any such security

trust shall be governed by the provisions of article 2095E of the Civil Cap. 16.

Code when the applicable law is the law of Malta.

(5) A mortgage registered under this Part may be drawn up to

secure the payment of a principal sum and interest, an account

current, as well as the performance of any other obligation, including

a future obligation due by the debtor to the creditor. It shall not be

necessary to indicate the monetary value of the indebtedness in the

mortgage unless it is intended to secure a future obligation in which

case a maximum sum by way of principal for which the mortgage is

granted must be expressly stated in the registered instrument and such

sum shall be reflected in the register by the Director General.

A mortgage to secure a future obligation may only be

granted in favour of a credit institution in an approved jurisdiction or

such other organisation as may be permitted by means of a Notice

issued by the Minister.

(6) For the purposes of this Act, the term ''account current''

means any indebtedness of a mortgagor in favour of a mortgagee

arising and determinable in accordance with an underlying obligation

and all the provisions of the Commercial Code relative to the contract

of account current including the provisions of article 264 thereof shall

not apply thereto unless expressly agreed to by the parties.

(7) When an international interest is registered in the

International Registry it shall be enforceable even in the absence of

the registration or notation in the National Aircraft Register and shall

be regulated by the First Schedule and the law governing its terms.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 30 Registration of mortgages. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) On the production of a mortgage for registration in

the form prescribed, the Director General shall record it in the

National Aircraft Register.

(2) Mortgages shall be recorded by the Director General in the

order of time in which they are produced to him for that purpose, and

the Director General shall by memorandum under his hand notify on

each mortgage that it has been recorded by him, stating the day and

hour of that record.

(3) Where it is stated in the instrument of the mortgage that it

is prohibited to create further mortgages on an aircraft without the

prior written consent of the mortgagee, the Director General shall

make a note in the National Aircraft Register to such effect, and the

Director General shall not record such further mortgage unless the

consent in writing of the holder of a prior mortgage is produced to

him, and any mortgage registered in violation of this provision shall

be null and void

Provided that where such further mortgage is executed in

favour of an existing creditor, no such consent shall be required from

such creditor

Provided further that nothing in this article shall hinder the

registration of a special privilege where this Act requires registration

for its continuing validity and effect.

(4) When it is stated in the instrument of mortgage that it is

prohibited to effect the transfer of the aircraft which is being

mortgaged or charged, or of a share therein, without the previous

written consent of the mortgagee, the Director General shall make a

note in the National Aircraft Register to such effect, and the Director

General, notwithstanding any other provision of this Act, shall not

record any transfer of such aircraft or of a share therein unless the

consent in writing of such mortgagee is produced to him, saving

where the transfer is made pursuant to a court order in a sale by

auction of such an aircraft or pursuant to any other court order, and

any transfer registered in violation of this provision shall be null and

void.

(5) Where a creditor has registered an international interest in

the International Registry in accordance with the First Schedule, it

shall be lawful for the debtor (being the registrant and, or the owner

of the aircraft) to execute and file a prohibitory notice in favour of

one or more creditors, in the form prescribed, which shall be entered

in the National Aircraft Register by the Director General.

(6) When a prohibitory notice is entered in the National

Aircraft Register in accordance with this article, the Director General

shall not thereafter record any security interest in the National

Aircraft Register in accordance with this Part, until the prohibitory

notice is withdrawn by the creditor.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 31 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Subject to article 32 and the terms of any inter- Preservation of

creditor agreement, upon the registration of any mortgage in the special

privileges or

National Aircraft Register, the rights of any mortgagee shall not be reservation

title of aircraft

affected by the following happening subsequently

on accessories

of aircraft.

(a)

the creation of any separate privilege or charge on

an aircraft or on any part, appurtenance or accessory of an

aircraft which may attach in virtue of any law except for the

privileges listed in article 42(1); or

(b) the reservation of ownership rights by a seller on an

aircraft or on any part, appurtenance or accessory sold to a

buyer under a contract of sale, hire purchase or any similar

contract;

(c)

any lease

Provided that provisions, fuel and other consumable goods

shall not be considered as appurtenances

Provided further that the provision of this article shall in no

way prejudice or reduce the rights of any creditor enjoying a privilege

or reserving ownership rights in relation to any creditor other than the

mortgagee.

(2) Subject to article 32, at any time prior to the registration of

a mortgage on an aircraft any creditor having a separate privilege or

charge on any part, appurtenance or accessory of an aircraft may

register such privilege or charge in the register of the aircraft by

means of an instrument executed by the owner in the presence of a

witness in the form prescribed, and on the production of such

instrument, the Director General shall by memorandum under his

hand notify on each charge that it has been recorded by him stating

the day and hour of that record.

(3) Subject to article 32, a seller reserving ownership rights on

an aircraft or on any part, appurtenance or accessory of an aircraft or

enjoying the benefit of any conditions affecting title thereto may

register his interest in the register of the aircraft at any time prior to

the registration of a mortgage.

(4) A lessee having rights to an aircraft or any part,

appurtenance or accessory of an aircraft may register his interest in

the register of the aircraft at any time prior to the registration of a

mortgage.

(5) The registration of such a charge or reservation of

ownership rights or of lessee rights prior to the registration of a

mortgage shall preserve the rights of the person referred to in the

preceding subarticles, on the aircraft or that part, appurtenance or

accessory in relation to any subsequent mortgage.

(6) A reservation of ownership rights registered on an aircraft

or a part, appurtenance or accessory shall be cancelled upon

production by the owner of a receipt for the price and other charges

relative to the transfer of an aircraft or such part, appurtenance or

accessory, and the Director General, upon production of such receipt

duly signed and attested to his satisfaction, shall make an entry in the

National Aircraft Register to the effect that the reservation of

ownership rights has been cancelled.

(7) When a lease which is noted in the Register is terminated

for any reason, the record thereof shall be removed by the Director

General upon production of such documents as may be prescribed

which demonstrate such termination to his satisfaction.

(8) The transfer of the interest of any creditor enjoying a

reservation of ownership or lessee rights registered in terms of this

article may, on the production of proof to the satisfaction of the

Director General, be recorded by the Director General who shall enter

in the register the name of the transferee and shall by memorandum

under his hand notify on the instrument of transfer that it has been

recorded by him.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 32 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) If there are more than one mortgage registered in Priority of

respect of the same aircraft or share, the mortgagees shall, mortgages.

notwithstanding any express, implied or constructive notice, be

entitled in priority, one over the other, according to the date and the

time at which each mortgage is recorded in the National Aircraft

Register.

(2) Subject to the provisions of subarticle (3), after the

effective date all mortgages registered in terms of this Part shall rank

after any international interest, prospective international interest and

other right or interest which is registered in the International Registry

on such aircraft or share therein irrespective of the date and time of

registration in the international registry.

(3) A mortgage registered in terms of this Part or any law

(which this Act substitutes) before the effective date shall retain its

priority over any international interest or prospective international

interest as defined in the First Schedule which may be registered in

the International Registry on such aircraft or share therein.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 33 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Without prejudice to any default remedies as may be Rights of

applicable by virtue of the First Schedule, the mortgagee shall, in the mortgagee.

event of default of any term or condition of a registered mortgage or

of any document or agreement referred to therein, and upon giving

notice in writing to the debtor -

(a)

be entitled to take possession of the aircraft or share

therein in respect of which he is registered; but except so far as

may be necessary for making a secured aircraft or share

available as a security for the secured debt, the mortgagee shall

not, by reason of the mortgage, be deemed to be the owner of

the aircraft or share, nor shall the mortgagor be deemed to have

ceased to be the owner thereof;

(b) have power absolutely to sell the aircraft or share in

respect of which he is registered; but where there are more

persons than one registered as mortgagees of the same aircraft

or share, a subsequent mortgagee shall not, except under the

order of a court of competent jurisdiction, sell the aircraft or

share without the concurrence of every prior mortgagee; and if

the proceeds of sale, after discharging the secured debt, show a

surplus in his hands, the mortgagee shall hold under trust or

deposit the same for the benefit of other creditors and of the

mortgagor debtor;

(c)

have power to apply for any extensions, pay fees,

receive certificates, and generally do all such things in the name

of the owner or registrant as may be required in order to

maintain the status and validity of the registration of the

aircraft;

(d) have the power to lease the aircraft so as to generate

income therefrom; and

(e)

have the power to receive any payment of the price,

lease payments, and any other income which may be generated

from the management of the aircraft.

For the purposes of this subarticle, the requirement to give

notice in writing to the debtor shall be considered to have been

satisfied if the mortgagee or holder of any security interest gives the

notice to the debtor by means of an electronic communication in

accordance with the Electronic Commerce Act, or in such other

manner as agreed between the parties, or if such notice is served at

the registered office of the debtor, if the registered address of the

owner is in Malta, or on a curator appointed by the court to represent

the debtor and the aircraft, and in the case of an international

registrant, on the resident agent in accordance with article 23(1)(g).

(2) The powers referred to in subarticle (1) may be exercised

by the mortgagee without the need of the leave of any court and to the

extent that any mortgagee seeks the support of the court due to any

hindrance of any person to the exercise of his rights, the court shall

render full support to the mortgagee as expeditiously as possible.

(3) The said powers shall be exercisable in accordance with

the terms of any agreement governing the mortgage.

(4) A registered mortgage shall be an executive title for the

purposes of article 253 of the Code of Organization and Civil

Procedure

(a)

where the obligation it secures is a debt certain,

liquidated and due; or

(b) where a maximum sum secured thereby is expressly

stated in the instrument creating the security and such figure is

recorded in the register for public notice.

(5) The provisions of this article shall also apply to all

registered mortgages which secure debts resulting from any account

current or overdraft or other credit facility as well as mortgages which

secure future debts.

(6) In connection with the enforcement of any mortgage, for

the purpose of determining -

(a)

the amount certain, liquidated and due, or

(b) the actual sum due when the mortgage secures a

future debt within an expressly stated maximum,

in connection with the enforcement of the security involving the sale

of an aircraft, the creditor shall specify the sum due at the time of

enforcement by means of a sworn affidavit notified or served on the

debtor. This shall be without prejudice to the right of the debtor to pay

such sum in settlement of the amount due to the secured creditor, or

the right of any interested party to contest such amount according to

law, even after payment of the sum claimed, but no person shall have

the right to hinder the exercise of the rights of the secured creditor in

any manner.

(7) Any judicial proceedings to enforce a mortgage shall be

carried out in accordance with the procedure described in article

187(4), (5) and (6) of the Code of Organisation and Civil Procedure, Cap. 12.

provided that in the case of an international registrant registered

under Part III, service on the debtor shall be carried out by serving a

copy of the proceedings on the resident agent in accordance with

article 22(1)(c).

(8) Subject to article 43, the debtor and the person in

possession of the aircraft shall be obliged to co-operate fully with the

mortgagee enforcing his rights under this article including, but not

limited to, surrendering and submitting all data, manuals, technical

records, parts, accessories and appurtenances belonging to the

aircraft.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 34 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered mortgage over an aircraft or share may Transfer of

be transferred to any person by an instrument of transfer executed by mortgage.

the transferor in the presence of, and attested by, a witness or

witnesses; and on the production of such instrument for registration

the Director General shall record it by entering in the register the

name of the transferee as mortgagee, of the aircraft or share, and shall

by memorandum under his hand notify on the instrument of transfer

that it has been recorded by him, stating the day and hour of the

record.

(2) For the purposes of article 1471 of the Civil Code,

registration of the instrument of transfer of a registered mortgage of

an aircraft or share made by the Director General in the National

Aircraft Register in terms of the provisions of this article shall be

deemed to constitute due notice of the assignment of such mortgage

to the debtor.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 35 Assignment of part of a debt or other obligation. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) It shall be lawful for the assignee of part of a debt or

other obligation secured by a registered mortgage of an aircraft or

share to demand that the assignment be entered in the register of the

particular aircraft for the part so assigned and the Director General

shall, upon the production to him of the relative instrument of transfer

together with the mortgage to which it relates, forthwith proceed to

record such partial assignment by entering in the register the name of

the assignee as co-mortgagee of the aircraft or share, and shall by

memorandum under his hand notify on the mortgage or security

interest that such assignment has been recorded by him, stating the

day and hour of the record.

(2) The provisions of article 34(2) shall be applicable mutatis

mutandis to the assignments contemplated in subarticle (1).

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 36 Transmission of interest of mortgagee by death. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Where the interest of the mortgagee in an aircraft or

share is transmitted by death, the person to whom the interest is

transmitted shall make and sign a declaration containing a statement

of the manner in which and the person to whom the property has been

transmitted and such declaration shall be accompanied by the like

evidence as is by this Act required in case of a corresponding

transmission of the ownership of an aircraft or share.

(2) On the receipt of the declaration and the production of the

evidence aforesaid, the Director General shall enter the name of the

person entitled upon the transmission in the National Aircraft

Register as mortgagee in the aircraft or share therein.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 37 Amendment of mortgage. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Where a registered mortgage is amended, the

Director General shall on the production of the instrument of

mortgage executed in accordance with the provisions of article 29

containing the amendment, together with the written consent on the

said instrument of the mortgagee whose mortgage has been amended,

make a note thereof in the National Aircraft Register to the effect that

the mortgage has been amended, and any such amendment shall form

an integral part of the registered mortgage which it amends and such

mortgage, as amended, shall continue to have the same priority as it

had before the amendment was noted.

(2) Subject to the provisions of this article, an amendment of a

mortgage may be effected for any purpose.

(3) Without prejudice to the generality of the foregoing, and

subject always to the provisions of subarticles (4), (5) and (6), an

amendment of a mortgage shall be effected for any one or more of the

following purposes

(a)

to increase the amount of capital secured by such

mortgage. An agreement to vary -

(i) the interest payable, the modalities for the

calculation of interest including any rate, indices, margin,

or market mechanism; or

(ii) the repayment schedule; or

(iii) the currency in which payment is to be made,

shall not be considered as an increase for the purposes of this

article; and

(b) to extend such mortgage to secure any other

obligation of the debtor, whether as principal or as surety for

any other person, in favour of the creditor, except where the new

obligation qualifies as a future obligation of the mortgagor to

the mortgagee secured by the mortgage being within a

maximum sum stated in the relative mortgage instrument and

registered in the National Aircraft Register.

(4) An amendment of a mortgage may not be effected after the

obligation secured by the registered mortgage has been

unconditionally discharged.

(5) Where any mortgages other than the one that it is intended

to amend, are entered in the National Aircraft Register of the aircraft

an amendment shall not be noted unless the consent in writing of all

the other mortgagees, whose interests may be prejudiced by the

amendment, is produced to the Director General.

(6) The consent to an amendment to a mortgage shall be

signified by means of a declaration executed by the creditor in the

presence of, and attested by, a witness or witnesses.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 38 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Where a registered mortgage is discharged, the Director Entry of

General shall, on the production of the mortgage deed, with a receipt discharge

mortgage.

for the secured money endorsed thereon, duly signed and attested,

make an entry in the National Aircraft Register to the effect that the

mortgage has been discharged.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 39 Transfers and mortgages not to have effect unless registered. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

A transfer or mortgage of a registered aircraft or share

therein, and a transfer of a registered mortgage shall have no effect in

regard to the aircraft or share or against any person other than the

transferor or the mortgagor, unless the transfer or mortgage has been

registered under and in accordance with this Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 40 Loss of original mortgage deed. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) In case of loss of any registered mortgage the

Director General shall, at the request of the mortgagee alone, or

together with the debtor, reconstitute the original mortgage and

certify this instrument as a reconstituted original of the mortgage. The

Director General shall only accede to such a request upon the

production by the party making the request of a sworn declaration to

the effect that the original has been lost.

(2) In such a case the Director General shall make a note in the

National Aircraft Register that a reconstituted mortgage has been

issued, reciting at whose request such a reconstituted instrument has

been issued.

(3) In case of loss of any original mortgage, the Director

General may enter any transfer or discharge of mortgage if the

mortgagee produces a sworn declaration that he is the holder of the

mortgage, the instrument of which has been lost, and that he is

discharging or transferring the said mortgage in virtue of the sworn

declaration.

(4) In such a case the Director General shall, on production of

the said sworn declaration, treat such declaration as the mortgage and

shall follow the procedure specified in this Act for the transfer or

discharge of the mortgage; the Director General shall make a note in

the National Aircraft Register that the transfer or discharge of the

mortgage has taken place in virtue of a sworn declaration.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 41 Recognition of foreign mortgages and foreign security interests. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A foreign mortgage shall be recognised as a

mortgage with the status and all the rights and powers specified in

this Act, notwithstanding the fact that it is not entered on a registered

aircraft if

(a)

such mortgage has been validly recorded in the

registry of aircraft or other register of the country under whose

laws the aircraft is documented;

(b)

such registry is a public registry;

(c)

such mortgage appears upon a search of such

registry; and

(d) such mortgage is granted a preferential and

generally equivalent status as a mortgage under this Act under

the laws of the country where the mortgage is registered.

(2) An international interest registered in the International

Registry in accordance with the First Schedule shall be recognized

and enforceable under the laws of Malta and shall have the status and

all rights and powers specified in the First Schedule with reference to

a registered aircraft irrespective of whether it is recorded in the

National Aircraft Register or not.

(3) Without prejudice to any default remedies as may be

applicable by virtue of the First Schedule, the holder of a security

interest which is registered in accordance with the First Schedule

shall, in the event of default of any term or condition of such security

or of any document or agreement referred to therein, and upon giving

notice in writing to the debtor -

(a)

have power to terminate the agreement and take

possession or control of the aircraft to which the agreement

relates; or

(b) apply to the court to authorise or direct either of

these acts.

(4) A security interest which is registered in accordance with

the First Schedule shall be an executive title for the purposes of

article 253 of the Code of Organization and Civil Procedure where

(a)

it secures the rights of a seller under a conditional

sale with reservation of ownership rights; or

(b) it secures the rights of a lessor under a lease

agreement.

(5) The powers referred to in subarticle (3)(a) may be

exercised by the creditor without the leave of any court and to the

extent that any creditor seeks the support of the court due to any

hindrance of any conditional buyer or lessee to the exercise of his

rights, the court shall render full support to the holder of the security

interest as expeditiously as possible including by making any

declaration on the vesting of ownership or lessor rights or the

termination of possessory rights to the aircraft.

(6) The provisions of -

(a)

the last paragraph of article 33(1); and

(b) article 33(2), (7) and (8), with reference to the

powers stated in subarticle (3) of this article and generally

stated in the First Schedule

shall apply to the enforcement of a security interest which is

registered in accordance with the First Schedule.

(7) When the proper law of a conditional sale or a lease

agreement is Maltese law and the security interest in relation thereto

is registered in accordance with the First Schedule, for the purposes

of Maltese law, the owner and, or the lessor shall enjoy the status and

powers in relation to the relevant aircraft as is envisaged in terms of

subarticles (3) to (6).

(8) A security interest shall be governed by the terms of the

security agreement constituting such interest whether with reference

to a registered aircraft or otherwise. The existence or validity of the

security interest, its construction and its effects shall be governed by

the proper law applicable to the security agreement and when

executed and, or perfected in accordance with the proper law, shall be

recognised and given effect to in Malta in accordance with this

article. Such interests shall be subject and subordinate to the rights of

any registered mortgagee or the holder of an international interest

duly registered in accordance with the First Schedule and shall be

subject also to the terms of any inter-creditor agreement.

(9) A security interest shall operate for such time and under

such conditions as apply under the proper law governing the security

agreement.

PART V

SPECIAL PRIVILEGES ON AIRCRAFT

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 42 Special privileges on aircraft. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The debts hereunder specified are secured by a

special privilege upon the aircraft, as well as any proceeds from any

indemnity arising from any mishaps as well as any insurance

proceeds, provided that this provision shall not apply in relation to an

indemnity payable under a liability policy

(a)

judicial costs incurred in respect of the sale of the

aircraft and the distribution of the proceeds thereof pursuant to

the enforcement of any mortgage or other executive title;

(b) fees and other charges due to the Director General

arising under applicable law of Malta in respect of the aircraft;

(c)

wages due to crew in respect of their employment on

the aircraft;

(d) any debt due to the holder of a possessory lien for

the repair, preservation of the aircraft to the extent of the service

performed on and value added to the aircraft;

(e)

the expenses incurred for the repair, preservation of

the aircraft to the extent of the service performed on and value

added to the aircraft; and

(f)

wages and expenses for salvage in respect of the

aircraft.

(2) The debts hereunder specified are secured by a special

privilege upon the aircraft, as well as any proceeds from any

indemnity arising from any mishaps as well as any insurance

proceeds, other than from a liability policy, if registered in the

International Registry after the effective date

(a)

taxes, duties and, or levies due to the Government of

Malta in respect of the aircraft; and

(b) wages and expenses for assistance or recovery in

respect of the aircraft.

(3) The debts referred to in subarticle (2) shall constitute a

special privilege and enjoy the preference and status of such right in

relation to the aircraft only if the claim is created by the owner of the

aircraft or a person authorised by him. When such a claim is created

by an operator of the aircraft, it shall not affect the aircraft or the

owner thereof, and shall only operate in relation to the said debtor and

upon the termination of his temporary title and reversion of the

aircraft to the owner, the said claim shall be dissolved with regard to

the aircraft which shall revert unencumbered to the owner. This

article shall apply to a lessor in relation to a lessee, and a sub-lessor to

a lessee in the same manner, subject to such modifications as are

required due to the context.

(4) Upon the registration of such privileges in the register, the

person registering the aircraft, its owner, or operator shall be notified

of the registration by the registrant of the privilege.

(5) For the avoidance of doubt, the requirement for

registration of the privilege for taxes, duties and levies due to the

Government of Malta in subarticle (2)(a) and the specific ranking

position of such claim in article 44, shall apply and be binding with

reference to such claims notwithstanding the provisions of other

special laws of Malta which may govern such claims.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 43 Possessory lien or privilege. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Any aircraft repairer, aircraft manufacturer or other

creditor into whose care and authority an aircraft has been placed for

the execution of works or other purposes shall have a possessory lien

on the aircraft as security for the works done to the extent of the

service performed on and value added to the aircraft.

(2) A possessory lien shall entitle the creditor to retain

possession on the aircraft on which he has worked or carried out

activity until such creditor is paid the debts due to him for such

building, repairs or activity.

(3) A possessory lien shall be extinguished by the voluntary

release of the aircraft from the custody of the creditor.

(4) A possessory lien shall not be extinguished if the aircraft is

released pursuant to a court order or following a judicial sale of the

aircraft. In the latter case the creditor shall enjoy the priority specified

in article 44(1) over the proceeds of sale of the aircraft.

(5) The creditor shall be obliged to release the aircraft if he is

paid the sum claimed, or adequate security is deposited in the Civil

Court, First Hall, under the provisions of the Code of Organisation

and Civil Procedure

Provided that the creditor shall enjoy the same priority

over such sum or security.

(6) For the purposes of this article, the creditor upon a demand

by judicial letter served upon him by any person interested in the

aircraft, shall be obliged to declare the amount of his claim by judicial

act to be filed within a period of two days from the date of

notification to him of the aforesaid demand failing which he shall be

obliged to release the aircraft forthwith.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 44 Ranking of creditors. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The debts specified in article 42(1) shall rank in the

order therein set out and in preference to all other claims; provided

that the person in possession of the aircraft enjoying a possessory lien

shall not be constrained to release the aircraft until the sums due to

him are unconditionally discharged or otherwise secured to his

satisfaction and in any such case shall rank first on such security as

may be granted.

(2) Any debt secured by a mortgage registered in the National

Aircraft Register or a charge in the International Registry or secured

by a foreign mortgage recognised under this Act shall rank after the

debts secured by possessory liens and, subject to subarticle (5),

special privileges on aircraft in terms of article 42(1) and in

preference to other hypothecary and privileged claims.

(3) The debts secured by special privileges referred to in

article 42(2) shall, on registration in the International Registry, and

subject to subarticle (5), rank after the debts referred to in article

42(1) but after all debts secured by mortgages and charges in the

International Registry registered prior to the date of the registration of

the relevant privilege.

(4) Where the fund is insufficient -

(a)

competing creditors under the same heading of

privileges in article 42(1) shall rank equally and shall share in

such fund pro rata to the amount of their claim;

(b) registered special privileges referred to in article

42(2) and mortgages shall rank in order of date and time in

accordance with article 32(1), subject to the specific exceptions

laid down in subarticles (2) and (3) of the same article;

(c)

security interests governed by a foreign law and

recognised in accordance with article 41 shall rank after the

claims referred to in paragraphs (a) and (b); and

(d) general hypothecs and privileges, whether general or

over particular movables, shall rank after the debts referred to in

paragraphs (a), (b) and (c), and shall rank among themselves

according to the provisions of the Civil Code.

(5) The preference and rights of privileges listed in article

42(2) shall arise only in relation to the particular title of an operator

of an aircraft, whether being the owner or a person under a temporary

title, and shall not bind any other party or encumber his assets.

PART VI

IMPLEMENTATION OF THE CAPE TOWN CONVENTION

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 45 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Words and expressions used in this Part have the Interpretation.

same meaning as the corresponding words and expressions used in

the Cape Town Convention and the Protocol as reproduced in the

First Schedule.

(2) In interpreting the Cape Town Convention and the Aircraft

Protocol and Implementing Law, a court or other interpreter may have

recourse to the list of sources and materials listed in the Third

Schedule as the same may be updated and supplemented from time to

time, and such other texts as the court considers relevant to

interpreting the Cape Town Convention and the Protocol.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 46 Cape Town Convention and Aircraft Protocol to have the force of law in Malta. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The Government of Malta is hereby authorised to

ratify the Cape Town Convention and its Aircraft Protocol and

without prejudice to the Declarations lodged by the European

Community on behalf of its Member States, the Government of

Malta, through the Minister of Foreign Affairs, is authorized to lodge

such Declarations in respect thereof as the Minister may decide, and

in future to lodge any revocation thereof, or amendment thereto, as

may be necessary from time to time.

(2) Subject to subarticle (3), the Cape Town Convention and

the Aircraft Protocol as reproduced by the Implementing Law shall

have the force of law in Malta in relation to matters to which they

apply and shall prevail over any other law, in case of conflict.

(3) The provisions of the Cape Town Convention and the

Aircraft Protocol shall come into effect on the effective date.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 47 Relevant court for the purposes of the Cape Town Convention and Aircraft Protocol. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The First Hall Civil Court is the relevant court for the

purposes of the Cape Town Convention and the Protocol for the

purposes of Article 53 of the Cape Town Convention.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 48 Cape Town Convention and Aircraft Protocol to be judicially noticed. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

All courts and tribunals are required to take judicial notice

of the provisions of the Cape Town Convention and the Protocol as

implemented by the Implementing Law.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 49 Protection of operation of the International Registry. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

A court or tribunal may not make an order or a decision

that would have the effect of binding the Registrar and if such a

matter were to arise before a Maltese court, the court shall stay

proceedings and refer the matter to the relevant courts enjoying

jurisdiction in accordance with the Cape Town Convention.

PART VII

RULES ON THE OPERATION OF SECURITY RIGHTS IN

AIRCRAFT WHEN GOVERNED BY TWO PARTS OF THIS ACT

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 50 Entitlement to registration. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

A creditor is entitled to register his mortgage under Part IV

or as an international interest under Part VI and the First Schedule, or

both, as he may require.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 51 Applicable Part. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

To the extent that the creditor chooses to register his

mortgage only in terms of Part IV, Part IV shall apply exclusively to

such security.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 52 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Where an international interest is registered in terms of Registration of

Part VI and the First Schedule, such international interest will be fully international

interest.

enforceable in Malta subject however to those rights having priority

as provided for in article 42. The international interest shall not be

subordinate to any mortgage registered under Part IV, even if the

international interest is registered at a later date, except for those

mortgages registered under Part IV prior to the effective date.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 53 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

When a creditor chooses to register a mortgage under Part In case of

IV and an international interest under Part VI and the First Schedule, conflict

two Parts.

Part VI and the First Schedule shall prevail to the extent that there is a

conflict between the two Parts.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 54 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Apart from the specific exception referred to in article 52, Registered

the registration of a mortgage under Part IV shall under no international

interest to

circumstances prejudice the operation of an international interest operate

independently

registered under Part VI and the First Schedule.

of the

application of

Part IV.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 55 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In case of conflict on any matter between Part IV on the Prevalence of

one hand and Part VI and the First Schedule on the other hand, Part Part

First Schedule.

VI and the First Schedule shall prevail over Part IV; however, to the

extent that a mortgage registered under Part IV attaches to more

assets or grants additional rights, then the mortgagee registered under

Part IV shall be entitled to such additional rights in terms of Part IV.

PART VIII

MISCELLANEOUS

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 56 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In addition to the matters on which the Minister is Powers to make

empowered to prescribe rules under the provisions of this Act, the regulations.

Minister shall additionally have the power to make regulations to

regulate the following matters

(a)

the registration of any aircraft, including matters

relating to nationality and marking as well as eligibility to

register the same or to remain the registrant thereof and to

establish rules applicable to cases where the ownership is held

by, or for the benefit of, more than one person;

(b)

the registration of aircraft under construction;

(c)

the conditions of any temporary title to an aircraft in

the context of registration thereof;

(d)

fractional ownership and all matters related thereto;

(e)

forms, fees, declarations and undertakings and

ancillary matters relating to registration of aircraft, mortgages

and other rights over aircraft or parts thereof;

(f)

the registration of foreign law security interests in

the register and the rules applicable thereto including forms,

fees and other matters;

(g)

proceedings for damages;

(h) the classification of aircraft, nationality, and

registration marks of aircraft registered in Malta;

(i)

the operation of security granted to secure future

debts;

(j)

the regulation of agreements constituting security,

other than mortgages, over or in relation to aircraft as well as

registration or enforcement thereof and ancillary matters

relating thereto;

(k) the establishment, operation and expansion of

aviation undertakings of any legal form or purpose by the

introduction of incentives, schemes and other facilitations;

(l)

the recognition of rights in aircraft components;

(m) the introduction of penalties for non-observance of

the provision of this Act;

(n) the definition of aircraft for the purposes of this Act

and for the purposes of the applicability or interpretation of any

other law; and

(o) any other matter which may be further regulated for

the better implementation of the provisions of this Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 57 Segregated cells within aviation undertakings. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) It shall be lawful for aviation undertakings having

the legal form of foundations registered in terms of the Second

Schedule of the Civil Code to establish segregated cells in accordance

with the provisions of article 20 of the Second Schedule of the Civil

Code.

(2) The Minister may, with the concurrence of the relevant

Minister responsible for foundations, make regulations relating to

article 20 of the Second Schedule of the Civil Code to regulate

(a)

the mode of its applicability to aviation undertakings

of the particular legal form; and

(b) all related and ancillary matters, including but not

limited to the powers of the relevant Registrar, any requirements

for notification to such registrar or for registration in the

relevant registry, applicable fees, forms, or otherwise.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 58 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) In case of conflict between the Maltese and Conflict

between texts

English text of this Act, the English text shall prevail.

and language of

the First

Schedule and

(2) Any rules or regulations made pursuant to any provision of

regulations.

this Act shall be made in the Maltese language and in the English

language; however where in exceptional cases the use of the Maltese

language would be difficult due to technical terminology, such rules

or regulations may be made in the English language only.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 59 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) All registered aircraft that have been validly entered Transitory

in the register before the entry into force of this Act shall continue to provisions.

be validly registered in terms of this Act until the registration is

cancelled in accordance with this Act, unless required to comply with

any requirements of this Act by means of a notice in writing issued by

the Minister which shall provide for a minimum period of six months

for such compliance.

(2) All registered mortgages that have been validly entered in

the register before the entry into force of this Act shall continue to be

valid and enforceable in terms of this Act and shall not be affected in

any manner whatsoever by the entry into force of this Act, or the

repeal, or amendment, of any provision applicable to such mortgage

prior to the coming into force of this Act.

(3) Any special privileges which may have arisen over the

aircraft before the entry into force of this Act shall be governed by the

law in force until such date and shall not be affected by the coming

into force of this Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 60 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The following enactments shall apply in the case of the Application of

landing in or departure from Malta of passengers from or by any Laws.

aircraft, and any obligation or duty and any penalty for any breach

thereof imposed by the said enactments on the master of a vessel shall

be deemed to be imposed on the pilot or other person in command of

an aircraft

(a)

the Immigration Act; and

(b)

article 103 of the Merchant Shipping Act.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 61 Consequential amendments. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The enactments in the First Column of the Fifth Schedule

shall have effect subject to the amendments appearing relative thereto

in the Second Column of the said Schedule.

Malta Government Gazette — Act 2010 8 — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 62 Reprint. — VIII tal-2010 - Att tal-2010 dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Without prejudice to any other law, in any reprint of this

Act, the Fifth Schedule need not be reproduced and it shall be

sufficient to reproduce Parts I to VIII and the First, the Second, the

Third and the Fourth Schedules to this Act

Provided that nothing in this article shall be construed as

reducing the validity of anything contained in the Fifth Schedule not

so reproduced.

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