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Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru

73 Articles / Provisions · Malta
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Table of Provisions (73)

Art. 1 Short title. First Schedule Art. 2 Interpretation. Second Schedule Art. 3 Aircraft registered under this Act. Third Schedule Art. 4 The Malta Aircraft Register. Fourth Schedule Art. 5 Registrants of aircraft to be operators of aircraft. Fifth Schedule Art. 6 Qualified persons. Art. 7 Conditions of eligibility to joint or fractional ownership. Art. 8 Applications for registration. Art. 9 Particulars of aircraft, engines, etc., to be entered in the Malta Aircraft Register. Art. 10 Certificate of Registration. Art. 11 Obligation of the registrant to notify the Director General of certain events. Art. 12 Updating of the Malta Aircraft Register. Art. 13 Cancellation of registration. Art. 14 Register closed save unsatisfied mortgages and security interests. Art. 15 Inspection of the Malta 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 Appointment of resident agent. Art. 21 Jurisdiction of the Maltese courts. Art. 22 Functions of the resident agent. Art. 23 Powers of resident agent. Art. 24 Resignation or removal of resident agent. Art. 25 Aircraft as security for debts. Art. 26 Types of charges on aircraft. Art. 27 Priority of claims on aircraft over all other debts of owner. Art. 27A Insolvency proceedings in case of aircraft companies. Art. 28 Attachment and extinguishment of charges and other rights. Art. 29 Mortgage of aircraft or share. Art. 30 Registration of mortgages. Art. 31 Preservation of special privileges or reservation of title of aircraft on accessories of aircraft. Art. 32 Priority of mortgages. Art. 33 Rights of mortgagee. Art. 33A "Further remedies of mortgagee. Art. 33B Vesting of aircraft object in satisfaction by way of set-off. Art. 33C Meaning of default. Art. 34 Transfer of mortgage. 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. 37A Correction of a mortgage. Art. 37B Modification of the registered details relating to a mortgage. Art. 38 Entry of discharge of mortgage. 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. 41A Extension of rights under Maltese law. Art. 42 Special privileges on aircraft. Art. 43 Possessory lien or privilege. Art. 44 Ranking of creditors. Art. 45 Interpretation. 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 Registration of international interest. Art. 53 In case of conflict between two Parts. Art. 54 Registered international interest to operate independently of the application of Part IV. Art. 55 Prevalence of Part VI and the First Schedule. Art. 56 Powers to make regulations. Art. 57 Segregated cells within aviation undertakings. Art. 58 Conflict between texts and language of the First Schedule and regulations. Art. 59 Transitory provisions. Art. 60 Application of Laws. Art. 61 Administrative sanctions.

Statutory Text (73 Articles)

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 1 Short title. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The short title of this Act is the Aircraft Registration Act.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
First Schedule — Att 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 Malta 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 Malta 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 Malta 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

re s p on s i b le a nd a r is in g p r i or to r e c e ip t o f re gi s t r a t i on in f or ma ti o n at th e

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 agreem ent betw een the hold ers of t hose interests, bu t an assi gnee 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 2 Interpretation. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) In this Act, unless the context otherwise requires

"Consolidated Fund" has the same meaning assigned under

article 124 of the Constitution;

"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, including unmanned aircraft whose

design is subject to certification under the EASA Basic Regulation and

airframes with aircraft engines installed thereon, but excluding aircraft

used in the military, customs or police services of any State;

"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 together with all modules and other

installed, incorporated or attached accessories, parts and equipment

and all data, manuals and records relating thereto without prejudice to

any other thresholds which may be applicable for the purposes of other

parts of this Act;

"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 persons or cargo, together with all installed,

incorporated or attached accessories, parts and equipment (other than

aircraft engines), and all data, manuals and records relating thereto,

without prejudice to any other thresholds which may be applicable for

the purposes of other parts of this Act;

"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

*See article 1(2) of the Act as originally promulgated, and Legal Notice 446 of 2010.

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;

"Certified Designee" means any party designated as a certified

designee by the named authorised party under an irrevocable de-

registration and export request authorisation;

"credit institution" shall have the same meaning as assigned to it in

article 2 of the Banking 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;

"EASA Basic Regulation" means Regulation (EU) 2018/1139 of the

European Parliament and of the Council of 4 July 2018 on common

rules in the field of civil aviation and establishing a European Union

Aviation Safety Agency, and amending Regulations (EC) No. 2111/

2005, (EC) No. 1008/2008, (EU) No. 996/2010, (EU) No. 376/2014

and Directives 2014/30/EU and 2014/53/EU of the European

Parliament and of the Council, and repealing Regulations (EC) No.

552/2004 and (EC) No. 216/2008 of the European Parliament and of

the Council and Council Regulation (EEC) No. 3922/91, as amended

from time to time;

" E E A St a t e " m e a n s a St a t e w h i c h i s a p a r t y t o t h e E E A

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";

"Malta Aircraft Register" or "National Aircraft Register" or

"register" means the register to be maintained by the Director General

in terms of article 4;

"Minister" means the Minister responsible for civil aviation and, to

the extent of the authority given, any person authorised in that behalf

by such Minister;

"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;

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

agreement and any other agreement by virtue of w hich 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 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 Malta Aircraft Register;

"resolution" means a resolution of the House of Representatives;

"security agreement" means an agreement by which a debtor grants

or agrees to grant to a creditor an interest (including an ownership

interest or a mortgage) in or over an aircraft to secure the performance

of any existing or future obligation of the debtor or a third person;

"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;

"unmanned aircraft" means any aircraft operating or designed to

operate autonomously or to be piloted remotely without a pilot on

board.

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

article 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, as

defined, also to the interpretation of the provisions of this Act, unless

defined differently or the context requires otherwise.

(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

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Second Schedule — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Substituted by

XXXVII.2021.32.

(articles 4, 13)

THE PROCEDURES AND FORMS APPLICABLE FOR THE RECORDING AND

CANCELLING OF AN IRREVOCABLE DE-REGISTRATION AND EXPORT

REQUEST AUTHORISATION AND DE-REGIST ERING AIRCRAFT AND

REGISTRATION AND EXPORT REQUEST AUTHORISATION

Malta has promulgated the following implementing legislation ("this Schedule")

relating to the procedures for recording and cancelling an Irrevocable De-registration

and Export Request Authorisation and the De-Registration of an Aircraft and Exporting

Aircraft Objects under an Irrevocable De-registration and Export Request Authorisation.

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)

"Aircraft" means aircraft as defined for the purposes of the Chicago

Convention which are either airframes with aircraft engines installed thereon or

helicopters and duly registered or intended to be registered in the National

Aircraft Register and to which the Treaty applies;

(b)

"Applicant" means an entity or person that has applied or is

applying for the registration of an Aircraft in the National Aircraft Register;

(c)

"Authorised Party" means an entity or person in favour of whom an

IDERA has been issued;

(d)

"Certified Designee" means an entity or person named in a

Designation as the certified designee under an IDERA;

(e)

"Convention" means the Convention on International Interests in

Mobile Equipment, 2001;

(f)

"Declarations" means the declarations lodged by the state of Malta

in connection with its accession to the Convention and Protocol;

(g)

"De-Registration" means the deletion or removal of the registration

of an Aircraft from the Registry and promptly providing documentary evidence of

such De-Registration to the Authorised Party or Certified Designee, as applicable;

(h)

"Designation" means a designation in the form of Annex 2;

(i)

"Export" means the export and physical transfer of an Aircraft from

the territory of Malta;

(j)

"IDERA" means an Irrevocable De-Registration and Export

Request Authorisation in the form of Annex 1;

(k)

"Officer" of an entity means the person who is duly authorised to

represent such entity or whose signing authority is acceptable to the Director

(l)

"Protocol" means the Protocol to the Convention on International

Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, 2001;

(m) "Record" means evidencing a document in permanent form for

authoritative reproduction in the future and retaining that evidence in the

registration file for an Aircraft to which the document relates;

(n)

"National Aircraft Register" or "register" or "Malta Aircraft

Register" means the National Aircraft Register of Malta;

(o)

"Registry Authority" means the Authority for Transport in Malta

established under the Authority for Transport in Malta Act;

(p)

"Related Engine" means an engine to which the Treaty applies and

which is identified by manufacturer’s serial number in an IDERA;

(q)

"Request" means a request in the form of Annex 3;

(r)

"Revocation" means a revocation of an IDERA or Designation, as

the case may be, in the form of Annex 4;

(s)

"Signature Authorisation" a document legally authorising execution

of a document contemplated by this Schedule, including without restriction, a

power of attorney signed by an Officer; and

(t)

"Treaty" means the Convention, as modified by the Protocol and

including the declarations.

Article 2

IDERA Recordation

1. The Registry Authority will accept and Record an IDERA if that IDERA

(a)

is submitted in writing to the Registry Authority substantially in the

form of Annex 1;

(b)

identifies an Aircraft registered or to be registered in the Registry;

(c)

is signed in accordance with the requirements of Annex 5 (i) by an

Applicant, or if an Applicant is not a natural person, an Officer of an Applicant, or

(ii) under a Signature Authorisation.

2. Two copies of an IDERA are to be submitted to the Registry Authority and the

Registry Authority will acknowledge receipt of that IDERA by executing one such copy

3. The Registry Authority will (a) Record an IDERA submitted in accordance

with Article 2(1) within two working days of receipt, (b) promptly confirm that

Recordation is complete, and (c) issue a declaration stating that pursuant to the

Recordation of the IDERA the Registry Authority undertakes not to deregister the

aircraft, unless consented to by the Authorised Party.

4. The Registry Authority will neither Record nor give effect to an IDERA for an

Aircraft if that Aircraft has not yet been registered in the Registry or if another Recorded

IDERA for that Aircraft has not been revoked.

5. If an IDERA is Recorded, an Authorised Party, or if a Designation is also

Recorded, its Certified Designee shall be the sole person authorised to deliver a Request

and exercise the remedies specified in the Protocol and/or in the First Schedule to the

Act and/or in the Act pursuant to such IDERA.

Article 3

Certified Designee

1. The Registry Authority will record a Designation if

(a)

it is submitted in writing to the Registry Authority substantially in

the form of Annex 2;

(b)

it identifies a Recorded IDERA or an IDERA submitted with that

Designation;

(c)

no other Designation is Recorded for the relevant IDERA, other

than a Designation which has been revoked;

(d)

it is signed in accordance with Annex 5 (i) by the Authorised Party,

or, if the Authorised Party is not a natural person, an Officer of the Authorised

Party, or (ii) by the foregoing under a Signature Authorisation.

2. Two copies of a Designation are to be submitted to the Registry Authority and

the Registry Authority will acknowledge receipt of that Designation by returning one

copy, indicating in writing that it was "received".

3. The Registry Authority will (a) Record a Designation submitted in accordance

with Article 3(1) within two working days, (b) promptly confirm that Recordation is

complete, and (c) issue a declaration stating that the pursuant to the Recordation of the

IDERA the Registry Authority undertake not to deregister the above captioned aircraft,

unless consented to by the Certified Designee.

Article 4

Cancellation of an IDERA or Designation

1. An IDERA or Designation shall be revoked and be of no further effect if a

Revocation

(a)

is submitted in writing to the Registry Authority substantially in the

form of Annex 4;

(b)

identifies a Recorded IDERA or Designation, as the case may be;

and

(c)

is signed in accordance with Annex 5 (i) in the case of an IDERA,

by an Authorised Party, or, in the case of a Designation, by the Certified Designee

and (ii) if the signatory to the Revocation is not a natural person, by an Officer of

the foregoing or by the foregoing under a Signature Authorisation.

2. An Applicant shall have no power to issue a Revocation or otherwise revoke

an IDERA or Designation.

3. Two copies of a Revocation are to be submitted to the Registry Authority and

the Registry Authority will acknowledge receipt of that Revocation by returning one

copy, indicating in writing that it was ‘received’.

4. The Registry Authority will (a) Record a Revocation in accordance with

Article 4(1) within two working days, and (b) promptly confirm that Recordation is

complete.

5. Upon Revocation

(a)

The Registry Authority will not accept a Request or take any other

action relating to an IDERA that has been revoked in accordance with Article

4(1);

(b)

The Registry Authority will not accept a Request from a Certified

Designee or take any other action on request of a Certified Designee under an

IDERA if the Designation of that Certified Designee has been revoked in

accordance with Article 4(1);

(c)

The validity of an IDERA shall not be affected by revocation of a

related Designation.

Article 5

Deregistration and Export

1. A Request will be accepted by the Registry Authority if that Request

(a)

is submitted in writing substantially in the form of Annex 3;

(b)

identifies an IDERA Recorded in the Registry; and

(c)

is signed in accordance with Annex 5 (i) by an Authorised Party or

a Certified Designee, or, if the Authorised Party or Certified Designee is not a

natural person, by an Officer thereof, or (b) by the foregoing under a Signature

Authorisation.

2. The Registry Authority will honour each Request submitted in accordance

with Article 5(1)

(a)

to the extent so requested, by (i) effecting the De-registration of the

Aircraft, and (ii) taking all action within its power to effect or facilitate the Export

of the Aircraft and any Related Engines

(I)

expeditiously, and, in any case, no later than five working

days following receipt of the Request;

(II) without (i) the consent or approval of the Applicant or any

other person or entity, (ii) any court or administrative or other order or

decision of any kind, (iii) any need for the Registry Authority to

investigate external facts, or (iv) imposing any additional requirements;

and

(III) regardless of whether the Authorised Party or its Certified

Designee is in possession of the Aircraft or Related Engine and

notwithstanding that a Related Engine is not installed on the Aircraft;

(b)

in the context of Export remedies only, subject to applicable

aviation safety laws and regulations. For the purposes of this regulation,

"applicable aviation safety laws and regulations"

(i)

do not include any requirement (I) for the issuance of an

export certificate of airworthiness, or (II) without limiting Article 5(3), for

any documents in the possession of, or any action by, an operator of an

aircraft.

3. A Request will have the following additional effects

(a)

to the extent within its reasonable control, the Authorised Party is

responsible, promptly following but not as a condition to the De-registration and

Export of the Aircraft, for

(i)

removing or covering the Registry’s nationality marks on the

Aircraft and removing the fireproof plate;

(ii)

returning to the Registry Authority the original (I) certificate

of registration for the Aircraft, and (II) certificate of airworthiness for the

Aircraft; and

(iii) changing any electronic or radio transmitting aircraft

identifications so that it no longer indicates that such aircraft is registered

in Malta.

4. Upon notice to the Applicant, the Aircraft may not be operated unless and

until it is re-registered and can be lawfully operated under applicable airworthiness rules.

5. A Request with respect to an Aircraft will be honoured under Article 5(1) and

5(2) without regard to the identity of the engines and other equipment then installed on

that Aircraft.

6. Export remedies under Article 5(1) and 5(2) will be made available for any

Related Engines which are not then installed on the Aircraft.

7. Without limiting the Registry Authority’s authority to De-Register aircraft

under applicable law, an Aircraft for which there is a Recorded IDERA may not be De-

Registered on the request of the Applicant, unless that IDERA is the subject of a

Revocation.

Article 6

Assignments

1. Rights under the documents set out in this regulation may not be assigned

except with the express consent of the Registry Authority.

Annex 1

IDERA

[Insert Date]

To: Authority for Transport in Malta

Director General for Civil Aviation

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 [number][mark] [insert

registration number/mark], with the following Related Engines [insert description of

engines, by model and manufacturer’s serial number] (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 way of security by the undersigned in favour of [insert name and address of

creditor] (the "Authorised Party") under the authority of (1) Article 25 of the First

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 of Malta maintained by Authority for Transport in Malta

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; and

(b)

confirmation that the Authorised Party or the person it certifies as

its designee (the "Certified Designee") may take action specified in clause (i)

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 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. The

undersigned hereby authorizes the Authorised Party to delegate the rights established by

this instrument to any third party who will be referred to as the certified designee.

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.

[Name of operator/owner]

By: [insert name of signatory]

Its: [insert title of signatory]

Agreed to and lodged this [insert date].

Annex 2

Designation

[Insert Date]

To: Authority for Transport in Malta

Director General for Civil Aviation

National Aircraft Register

Re: Designation Under Irrevocable De-Registration and Export Request

Authorisation, dated [insert date of IDERA] by [insert name of operator/owner] for the

[insert the airframe/helicopter manufacturer name and model number] bearing

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

number [number][mark][insert registration number/mark] (the "IDERA")

The undersigned is the Authorised Party (this and all other terms used in this

Designation have the meanings given in the IDERA) under the IDERA.

Under Article 3(2) of the Second Schedule to the Aircraft Registration Act the

undersigned hereby designates [insert name of Certified Designee] as the "Certified

Designee" for all purposes of [describe regulation], effective immediately and until this

Designation is revoked under Article 4(1) of the Second Schedule to the Aircraft

Registration Act.

[Insert name of Authorised Party]

By: [insert name of signatory]

Its: [insert title of signatory]

Agreed to and lodged this [insert date].

Annex 3

Request

[Insert Date]

To: Authority for Transport in Malta

Director General for Civil Aviation

National Aircraft Register

Re: Irrevocable De-Registration and Export Request Authorisation, dated [insert date

of IDERA] by [insert name of operator/owner] for the [insert the airframe/helicopter

manufacturer name and model number] bearing manufacturer’s serial number [insert

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

registration number/mark] (the "IDERA")

Aircraft: [insert the airframe/helicopter manufacturer name and model number]

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

registration number [number][mark] [insert registration number/mark]

[Related Engines: [if relevant, insert description, by model and manufacturer’s serial

number]]

The undersigned is the [Authorised Party][Certified Designee] (this and all other

terms used in this Designation have the meanings given in the IDERA) under the

IDERA.

[The undersigned hereby certifies that all registered interests ranking in priority to

that of the Authorised Party have been discharged or that the holders of such interests

have consented to the [de-registration and export of the Aircraft][export of the Related

Engine].]

Under Article 5 of the Second Schedule to the Aircraft Registration Act the

undersigned hereby requests as soon as practicable, and, in any case, within five working

days [(i) de-registration of the Aircraft, with notice of such de-registration immediately

thereafter sent to [insert name of state where the Aircraft is intended to be subsequently

registered] and (ii) co-operation of the Authority for Transport in Malta and other

administrative authorities in Malta in the export of the [Aircraft][Related Engine] from

Malta.]

[Insert name of Authorised Party/Certified Designee]

By: [insert name of signatory]

Its: [insert title of signatory]

Agreed to and lodged this [insert date].

Annex 4

Revocation

[Insert Date]

To: Authority for Transport in Malta

Director General for Civil Aviation

National Aircraft Register

Re: Irrevocable De-Registration and Export Request Authorisation, dated [insert date

of IDERA] by [insert name of operator/owner] for the [insert the airframe/helicopter

manufacturer name and model number] bearing manufacturer’s serial number [insert

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

registration number/mark] (the "IDERA")

[if this is a revocation of a Designation, include: The Designation, dated [insert date

of Designation] by [name of Authorised Party] designating [insert name of Certified

Designee]

The undersigned is the [Authorised Party][Certified Designee] (this and all other

terms used in this Revocation have the meanings given in the IDERA) under the

[IDERA][Designation].

In accordance with Article 4(1) of the Second Schedule to the Aircraft Registration

Act the undersigned hereby revokes the [IDERA][Designation], effective immediately.

[Insert name of Authorised Party/Certified Designee]

By: [insert name of signatory]

Its: [insert title of signatory]

Agreed to and lodged this [insert date].

Annex 5

Formalities

A document that indicates it was signed in Malta will be accepted by the Registry

Authority without additional formalities.

A document that indicates it was signed outside Malta will be accepted by the

Registry Authority if notarised locally to the satisfaction of the Director General and the

Director General in his discretion may also ask that the document is duly apostilled or

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 3 Aircraft registered under this Act. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) An aircraft may be registered in Malta and be subject to

the laws of Malta and have all the rights and privileges of a 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 Air Navigation Act, 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

s h a l l , u n l e s s e x p r e s s l y a g r e e d o t h e r w i s e w i t h a b u y e r, b e

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).

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Third Schedule — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(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").

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 4 The Malta Aircraft Register. — Att 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 sub-article

(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 and, when the engines or

replacement engines do not belong to the

registrant, the same details shall be recorded in the

Malta Aircraft Register with the consent of the

owner of the said engines or replacement engines;

(iii) full name, address, email address and telephone

number of the natural or legal persons under whose

name the aircraft is registered, and in what

capacity the registrant has registered the aircraft in

terms of article 5;

(iv) 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;

(v)

full name, address, email address and telephone

number of the natural or legal persons having

ownership rights on the aircraft;

(vi)

the details of any mortgages registered on the

aircraft, and subsequently all transactions

relating to mortgages registrable in terms of this

Act;

(vii) the details of any irrevocable de-registration and

export request authorisation, pursuant to article 2

of the Second Schedule, 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. Only

one irrevocable de-registration and export request

authorisation or only one power of attorney shall

be recorded in the register and such irrevocable de-

registration and export request authorisation or

such power of attorney shall only be issued by the

registrant of the aircraft. Furthermore, any

Certified Designee under any irrevocable de-

registration and export request authorisation or any

delegate under any power of attorney shall also be

recorded in the register. Provided that any

irrevocable de-registration and export request

authorisation or power of attorney issued by any

person other than the registrant and recorded in the

register prior to the coming into force of this

proviso shall remain valid, binding and duly

enforceable;

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

Malta Aircraft Register under the provisions of

article 31 or of any other law;

(ix)

the details of any international interests registered

on the aircraft in the International Registry, and

subsequently all transactions relating to such

international interests;

(b) the Director General shall note the following matters

in the Malta Aircraft Register if required to do so under

the applicable law or if requested to do so by the

registrant or by any other person who demonstrate an

interest in such information being entered in the Malta

Aircraft Register

(i)

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);

(ii) the lessee rights in relation to the aircraft or an

engine and all matters relating thereto in terms

of article 31;

(iii) the details of the resident agent where the

registrant is an international registrant;

(iv) 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 Malta Aircraft Register.

(4) Registration in the Malta 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Fourth Schedule — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Amended by

XXXVII.2021.33.

(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

{

Non-mechanically

Glider

Aircraft

driven

Kite

Heavier

than air

Aeroplane

aircraft

(Landplane)

Aeroplane

(Seaplane)

{

Aeroplane

(Amphibian

Aeroplane

(Self-launching

Mechanically

motor glider)

driven (flying -

machines)

Gyroplane

Helicopter

An aircraft which is intended to be operated with no pilot on board is to be further

classified as unmanned.

Unmanned aircraft includes unmanned free balloons and remotely piloted aircraft.

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 to

five characters, which characters can be a combination of capital letters in Roman

character and/or Arabic numbers assigned by the Director General on the registration of

the aircraft. The letters and numbers 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, a fireproof metal

plate shall be 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 and there shall be inscribed on the

fireproof metal plate at least the nationality and registration marks of the aircraft.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 5 Registrants of aircraft to be operators of aircraft. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) An aircraft may be registered in the Malta 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 sub-article (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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Fifth Schedule — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Added by

(Article 17)

LII. 2016.27.

Repealed by Act XL of 2023 .

Sixth Schedule

Added by

(Article 61)

LII. 2016.27.

ADMINISTRATIVE SANCTIONS

First Column

Second Column

Provision

Penalty

€

Article 11(1)(a)

2,000

Article 11(1)(b)

2,000

Article 11(1)(c)

2,000

Article 11(1)(d)

2,000

Article 13(1)(c)

5,000

Article 13(1)(g)

5,000

Article 13(1)(h)

5,000

Article 16(1)

5,000

Article 16(2)(a)

5,000

Article 16(2)(b)

5,000

Article 20(3)

2,500

Article 20(4)

2,500

The Authority may inflict on any person who has violated any of the

provisions listed in the First Column of this Schedule the corresponding penalty

listed in the Second Column of this Schedule.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 6 Qualified persons. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The following persons shall be qualified to register any

aircraft in the Malta Aircraft Register, whether that aircraft is 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, and if conducting air services then not less

than fifty per cent (50%) of the undertaking must be

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

c o n s e n t o f t h e t r u s t e e , d u l y a u t h e nt i c a te d , o r o t h e r w is e i n

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 7 Conditions of eligibility to joint or fractional ownership. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 8 Applications for registration. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Application for the registration of an aircraft shall be

made in writing on the prescribed form to the Director General, 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 9 Particulars of aircraft, engines, etc., to be entered in the Malta Aircraft Register. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Upon receiving an application for the registration of an

aircraft and after being satisfied that the aircraft may be so

registered, the Director General shall register the aircraft wherever

it may be, and shall include in the register the following particulars

relating to the 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 10 Certificate of Registration. — Att 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 (a), (b), (c) and (d), the name and address of the registrant,

the name, address and ownership interests or title of the owner, if

different, and the date of issue of such certificate.

(2) A certificate of registration may 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.

(3) The Director General may, at his sole discretion in order to

facilitate the registration of aircraft in appropriate circumstances,

proceed to issue a certificate of registration upon exempting the

aircraft from bearing the registration marks and, or affixing the fire

proof plate as outlined in Part B of the Fourth Schedule.

(4) The Director General may from time to time issue

guidelines in order to determine any exemptions which may be

granted in relation to the issue of a certificate of registration for

any aircraft registered under this Act. Any such guidelines shall

determine

(a) the basis on which and under what conditions any

such exemptions may be granted; and

(b)

when any certificate of registration so issued shall

be subject to the condition that the aircraft shall not be

operated, generally or for a specific flight.

(5) Any conditions imposed for any exemption issued pursuant

to sub-article (3) or any guidelines issued under sub-article (4)

shall be recorded in the Malta Aircraft Register and once these

conditions have been satisfied, they shall be removed accordingly.

(6)

Notwithstanding the above

(a) the Director General shall at all times before the

issuance of the certificate of registration have received

at least

(i)

evidence of title of the owner of the aircraft; and

(ii)

evidence that the aircraft has been de-registered

from the previous registry, showing the

registered encumbrances, if any;

(b) in facilitating the registration of such an aircraft in

appropriate circumstances, as outlined above, the

Director General shall at all times ensure compliance

with any regulations or directives or under acts

adopted by the European Union or international

conventions, relating to the safety of the operation or

the airworthiness of that aircraft.

(7) The Director General may suspend or revoke any exemption

issued and/or granted under this Act on sufficient ground or evidence

of breach of any conditions subject to which the exemption is issued or

granted and if ordered by the Minister the Director shall proceed

accordingly.

(8) 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 11 Obligation of the registrant to notify the Director General of certain events. — Att 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, an

international interest 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 12 Updating of the Malta Aircraft Register. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The Director General may, whenever it appears to him

necessary or appropriate to do so for giving effect to this Part, or

for bringing up to date, or otherwise correcting the particulars

en te red i n th e Mal ta Ai rc raf t Re gister o r the certificate of

registration, amend the Malta Aircraft Register or the certificate of

registration

Provided that where there is registered in the Malta Aircraft

Register an aircraft mortgage or an irrevocable de-registration and

export request authorization the Director General shall provide the

mortgagee or the authorized party or the Certified Designee with

fifteen days’ notice of his intent and receive representations from the

mortgagee or the authorized party or the Certified Designee. The

Director General shall act in such a manner as to protect the status of

the mortgage or the irrevocable de-registration and export request

authorization and the rights of the mortgagee or the authorized party or

the Certified Designee

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 13 Cancellation of registration. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Subject to the provisions of this article and article 14,

an aircraft shall not be registered or continue to be registered in

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, or by other action on the part of the

registrant, the owner of the aircraft or the authority

administering the previous registration, 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 registered mortgagee

or the holder of an international interest or 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, or is no longer

entitled to operate the aircraft under the temporary title or

for any other reason

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 sub-article shall require the Director

General to cancel the registration of the aircraft until

(i)

such time as the aircraft has been transferred to a

third party which is not a qualified person in

terms of article 6, or

(ii)

the holder of the international interest advises the

Director General that the registration is no longer

required to protect its interest;;

(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;

(h) it is not compliant with any applicable statutory

aircraft registration conditions in respect of aircraft

noise or exhaust gas emissions; or

(i)

it appears to the Director General that the aircraft is not

compliant with any applicable requirements under this

Act and/or under guidelines or exemptions as may be

prescribed by the Director General and such non-

compliance has not been remedied within the time-

frames imposed by the Director General.

(2) Where a request for cancellation of the registration of an

aircraft is made by an authorised person or his delegate in writing or

his Certified Designee, pursuant to a registered irrevocable de-

registration and export request authorisation or power of attorney,

registered in the Malta Aircraft Register or in the International

Registry, in accordance with the forms and procedures outlined in the

Second Schedule, such request shall be acted upon in all cases by the

Director General unless any international interest registered in the

International Registry, ranks in priority thereto in which case the

provisions of sub-article (4) shall apply.

(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 or an international interest or a registered

irrevocable de-registration and export request authorisation or a

registered power of attorney shall not be cancelled on the basis of

any of the events referred to in sub-article (1) and, nor shall the

Director General cancel the registration of such an aircraft pursuant

to this article unless all holders of registered mortgages or a

registered irrevocable de-registration and export request

authorisation or registered international interests or registered

power of attorney over that aircraft have consented to the

cancellation

Provided that the Director General shall cancel the

registration of such an aircraft where such a request for

cancellation is made by an authorised person or his delegate in

w ri t in g or h i s C e rt if i e d De s ig ne e , p ur s ua nt t o a r e g is t e r e d

irrevocable de-registration and export request authorisation or

power of attorney, registered in the Malta Aircraft Register or in

the International Registry as long as the holder of such registered

irrevocable de-registration and export request authorisation or his

delegate or Certified Designee or power of attorney has certified in

accordance with the Second Schedule, and has submitted

supporting documents to the satisfaction of the Director General,

that all registered international interests ranking in priority to that

of the holder of a registered irrevocable de-registration and export

request authorisation or his delegate or Certified Designee or power

of attorney have been discharged or that the holders of such

interests have consented to the de-registration and export of the

aircraft or of any related engine as specified in the Second

Schedule

Provided further that should there be a registered mortgage

registered prior to the effective date then the Director General shall

cancel the registration of such an aircraft if the holder of such

registered mortgage discharges the mortgage or else has so

consented to the de-registration and export of the aircraft or of any

related engine

Provided further that in the case referred to in sub-article

(1)(e), the Minister may order that an aircraft registration be cancelled

even without the consent of any mortgagee or the holder of an

international interest or the holder of a registered irrevocable de-

registration and export request authorisation or his delegate or

Certified Designee provided that the provisions of the following sub-

articles shall apply prior to the cancellation taking place.

(5) In the case referred to in sub-article (1)(e) above, the Director

General shall give all registrants, any mortgagees, any holders of any

international interests and any authorised person or his delegate or

Certified Designee under an irrevocable de-registration authorisation

and export request authorisation 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, any mortgagees, any holders of any

international interests and any authorised person or his delegate or

Certified Designee under an irrevocable de-registration authorisation

and export request authorisation may appeal to the Administrative

Review Tribunal established under the Administrative Justice Act,

within fifteen working days of receiving the relevant notice under

sub-article (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

sub-article, the Director General shall not proceed to close the

register.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 14 Register closed save unsatisfied mortgages and security interests. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In the case of cancellation of the registration of an aircraft

in terms of the provisions of article 13, the aircraft shall cease to be

registered and the register of the aircraft shall be considered as

closed except in so far as relates to any unsatisfied mortgages and

other holders of any security interest, including the holder of any

international interest or any authorised persons or Certified Designees

under any irrevocable de-registration and export request author

Provided that the Director General may, without prejudice to

rights of the mortgagee or the rights of the holder of any international

interest or any authorised persons or Certified Designees under any

irrevocable de-registration and export request authorisation,

communicate independently with the mortgagee or holder of any

security interest or the holder of any international interest including

any authorised persons or Certified Designees under any irrevocable

de-registration and export request authorisation, 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 or international

interest including enforcement of any irrevocable de-registration and

export request authorisation as well as to ensure the safe operation of

the aircraft.isation

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 15 Inspection of the Malta Aircraft Register. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The Malta 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

Malta Aircraft Register accessible on the internet or by any other

suitable electronic means.

(3) A transcript of the Malta Aircraft Register shall be issued

upon request and upon the payment of the prescribed fee.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 16 Nationality and registration marks. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 17 Fees. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) There shall be charged for the registration of an aircraft, or

of a mortgage over an aircraft and for any other purpose as may be

determined by the Authority such fees as may be prescribed by the

Authority.

(2)

Repealed by Act XL of 2023 .

PART III

INTERNATIONAL REGISTRANT

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 18 International registrants’ eligibility to register aircraft. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 19 International registrant. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 20 Appointment of resident agent. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The international registrant is required to appoint in

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 21 Jurisdiction of the Maltese courts. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

An international registrant in whose name an aircraft is, or

has been, registered under this Act, or in whose name a certificate

of 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

connection with the aircraft while it is or was so registered.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 22 Functions of the resident agent. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 23 Powers of resident agent. — Att 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 Malta 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 24 Resignation or removal of resident agent. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A resident agent may resign by giving at least fifteen

days’ notice (or such other shorter period as the international

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

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 25 Aircraft as security for debts. — Att 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.

(3) In this Part IV, the expression "claims to which the aircraft is

subject" or "aircraft claims" shall be construed to refer to debts or

other obligations secured by mortgages, international interests or

security interests and claims which enjoy a special privilege under

article 42.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 26 Types of charges on aircraft. — Att 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 and

notwithstanding the provisions of articles 566 to 584 of the Civil

Code, e n g i n e s a n d s e p a r a t e i t e m s o n o r i n a n a i r c r a f t m a y

themselves be subject to special privileges in accordance with the

provisions of the Civil Code, in security of the debts therein

specified.

(4) For the purposes of article 573 of the Civil Code, where an

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

o w n e r o f t h e a i r f r a m e w h o h a s g r a n t e d t h e s e c u r i t y,

notwithstanding that the engines may be specifically referred to in

th e instrum ent of mortgage, the Malta Aircraft Regi ster or

elsewhere.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 27 Priority of claims on aircraft over all other debts of owner. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) All registered mortgages, any special privileges and all

actions and claims to which an aircraft may be subject shall not be

affected by the bankruptcy and, or insolvency of the mortgagor or

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 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 sub-article 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) This article shall also apply to any international interest and,

or to any security interest registered in the International Registry.

(6) The provisions of article 329B of the Companies Act shall not

apply to a Maltese company whose main object or function is to own,

hold, operate, charter, manage or lease any aircraft or aircraft engine.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 27A Insolvency proceedings in case of aircraft companies. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) The memorandum and articles of a company, whose

centre of main interests is in Malta or is registered in Malta and the

sole asset of which is an aircraft or aircraft engines and other

related assets (in this article referred to as an "aircraft company"),

can specify that the right to request any insolvency proceedings in

relation to the aircraft company shall be exercised only by the

holders of a mortgage, an international interest or a security

interest, or trustees or agents for such persons (in this article

referred to as "preferred creditors"), over such assets, singly or

collectively, including as a class or classes of creditors, to the

exclusion of any other persons for as long as the interest of the

persons so indicated remains in force.

(2) Where, in the case of an aircraft company, the aircraft is

subject to a registered mortgage, an international interest, a

security interest or other aircraft claims, having priority under

article 25(1), and

(a) sub-article (1) applies; or

(b) the sums due to the relevant preferred creditor or

creditors under such rights appear prima facie to

exceed the value of the aircraft,

the court shall, on the demand by application of the relevant

preferred creditor or creditors as aforesaid

(i)

stay any insolvency proceedings which may have been

instituted; and, or

(ii) desist from issuing any orders relating to insolvency

proceedings,

until the court is satisfied that there exist excess funds due to the

aircraft company from any enforcement proceedings, in relation to

which orders relating to insolvency proceedings, including a

winding up order, may usefully be made.

(3) In the event contemplated in sub-article (2), the preferred

creditor making a demand under the said sub-article shall, on

making the demand and at such times and in the manner ordered by

the court, be bound to provide the court with all information

available to him relating to any enforcement proceedings he is

involved in or is otherwise aware of, and in case paragraph (b) of

sub-article (2) applies, information relating to the value of aircraft

and the claim. In such case the court shall await the outcome of

such enforcement proceedings, whether private or public as the

case may be, after which it shall issue such orders as it considers

appropriate in the circumstances, including the summary dismissal

of any applications on the basis of the absence of any assets

available to meet any claims other than those of the preferred

creditors.

The court shall not address or reopen issues already resolved,

agreed between the parties or determined by any court pursuant to

the provisions of this Act, or a foreign court otherwise having

jurisdiction, prior to such orders being made.

(4) Any person appointed by a court in Malta or overseas in

any insolvency proceedings shall not in any way interfere with the

exercise of remedies of the mortgagee, the holder of an

international interest, security interest or other aircraft claims and,

to the extent that he has any powers under applicable law, he shall

exercise them in support of the remedies of such creditors under

this Act. Should any aircraft come under his control prior to any

creditor having a right to take possession of an aircraft and, or

aircraft engine, in the exercise of his remedies, then such person

must preserve the aircraft and, or aircraft engine and maintain it

and its value in accordance with the agreements between the

creditor and the debtor and hand over possession of the aircraft to

the person entitled thereto under the provisions of this Act or any

other applicable law.

(5)

Should it result to the court that

(a) there are no excess funds resulting from any

enforcement proceedings; or

(b) ranking of creditor proceedings have taken place, in

Malta or overseas, over the proceeds of sale of the

aircraft, the result of which is final and binding on all

reditors, and there are no excess funds; and

(c) there is no other business of the aircraft company

which needs to be wound up,

it shall not order the winding up of the aircraft company but shall

instead declare the aircraft company dissolved and wound up for

the above reasons.

The court shall order the aircraft company to be struck off the

register without further procedures and this shall take place within

three months from the filing with the Registrar of Companies of

authenticated evidence of the enforcement proceedings, including

the sale of the aircraft or the closure of ranking of creditors, which

evidence together with a copy of any decrees of the court, shall be

filed at the Registry of Companies for public notice. In such event,

any residual rights of the aircraft company shall be vested in the

shareholders of the company by operation of law.

(6) Should it result that there are excess funds due to the

company after enforcement proceedings as aforesaid where the

claims of preferred creditors are dealt with in a final manner, the

court may order the winding up of the company in accordance with

the applicable law and the commencement among creditors who are

not preferred as aforesaid of the relative competing claims

procedure under Sub-Title III of Title VIII of Part I of Book Second

of the Code of Organization and Civil Procedure. A Maltese

company who is or was in possession of an Air Operator’s Licence as

issued by the Director General will be deemed to be a company whose

main object or function is to own, hold, operate, charter, manage or

lease any aircraft or aircraft engine and therefore the provisions of

article 329B of the Companies Act shall automatically not apply to

such company.

(7) Should the right to demand the winding up of the aircraft

company not be vested under the memorandum and articles of the

aircraft company in any of the persons referred to in sub-article (1),

and any member of the aircraft company files such demand on the

basis that there are grounds of sufficient gravity to warrant the

dissolution and winding up of the aircraft company

(a) the applicant shall, on making the demand and at such

times and in the manner ordered by the court, be bound

to provide the court with all information available to

him relating to any aircraft claims over the aircraft

and, or any enforcement proceedings involving the

aircraft company or of which he is otherwise aware;

and

(b) the court shall only issue such orders as will not hinder

any enforcement proceedings by the said creditors

under the provisions of this Act, unless otherwise

agreed between all parties; and

(c) if a preferred creditor provides evidence that sub-

article (2)(b) applies, the court shall act in accordance

with sub-article (2).

(8)

In this article

"company" shall include any legal organisation of any form,

whether constituted under the laws of Malta or of another state and

shall include also a trust being administered by a trustee holding

relevant assets;

"enforcement proceedings" shall include actions by any

mortgagee, the holder of an international interest, a security

interest and, or aircraft claimants, whether in Malta or overseas,

under article 33, 33A, 33B and 33C of this Act or any judicial sale

proceedings under applicable law;

"insolvency proceedings" means bankruptcy, liquidation,

administration, winding up, company reconstruction 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, a liquidator, an

administrator or an insolvency practitioner for the purposes of

reorganisation or liquidation;

"related assets" shall include any proceeds of sale or insurance or

requisition compensation, and all property referred to in article

25(2).

(9) For the avoidance of doubt, the provisions of the

Companies Act relating to insolvency shall not apply insofar as

inconsistent with this article, the provisions of this Act and in

particular with the First Schedule of this Act.

(10) Nothing in this article shall restrict or prejudice the right of

any creditor to submit its claim to the court, in order to ensure that

the claim is considered by the court at the appropriate time, paying

regard to the provisions of this article.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 28 Attachment and extinguishment of charges and other rights. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered mortgage shall attach to the aircraft or

share therein in r espect of which it is registered until it i s

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 aircraft is transferred to third parties.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 29 Mortgage of aircraft or share. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered aircraft or a share therein may be made a

security for any debt or other obligation by means of an instrument

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 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 Malta Aircraft Register and shall

be regulated by the First Schedule and the law governing its terms.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 30 Registration of mortgages. — Att 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 Malta

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 Malta 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 Malta 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 Malta Aircraft Register by the Director General.

(6) When a prohibitory notice is entered in the Malta Aircraft

Register in accordance with this article, the Director General shall

not thereafter record any mortgage or other security interest in the

National Aircraft Register in accordance with this Part, until the

prohibitory notice is withdrawn by the creditor, or unless the creditor

enjoying the benefits of the prohibitory notice grants prior written

consent.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 31 Preservation of special privileges or reservation of title of aircraft on accessories of aircraft. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Subject to article 32 and the terms of any inter-creditor

agreement, upon the registration of any mortgage in the Malta

Aircraft Register, the rights of any mortgagee shall not be affected

by the following happening subsequently

(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 or at any time after the registration of a mortgage but only with the

written consent of the mortgagee.

(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 special privilege, 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 sub-articles, 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 Malta 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 32 Priority of mortgages. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) If there are more than one mortgage registered in

respect of the same aircraft or share, the mortgagees shall,

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 Malta Aircraft

Register.

(2) Subject to the provisions of sub-article (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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 33 Rights of mortgagee. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Without prejudice to any default remedies as may be

applicable by virtue of the First Schedule, the mortgagee shall, in

the 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 sub-article, 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

represen t th e debt or an d th e aircr aft, 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 sub-article (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) The mortgagee may alternatively apply to the court for an

order authorising or directing any of the acts referred to in sub-

article (1) and may apply to the court for the judicial sale of the

aircraft or engine in which case sub-articles (5) to (8) shall apply.

(5) 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.

(6)

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 obligations.

(7) In connection with the enforcement of any mortgage, for

the purpose of determining -

(a) the amount certain, liquidated and due, or

(b) the mortgage secures a future obligation 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.

(8) Any judicial proceedings to enforce a mortgage shall be

carried out in accordance with the procedure described in article

1 8 7 ( 4 ) , ( 5 ) a n d ( 6 ) o f t h e C o d e o f O rg an i z a t i o n a n d C i v i l

Procedure, 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).

(9) 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 33A "Further remedies of mortgagee. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Any sum collected or received by the mortgagee as a

result of the exercise of any of the remedies set out in article 33 and

including sums in reimbursement of any reasonable costs in the

exercise of such remedies, shall be applied by the mortgagee

towards discharge of the secured obligations, subject to the

satisfaction of any prior rights of creditors under Part V or Part VII.

(2) Unless otherwise ordered by the court, in the event that

there are excess funds after the exercise carried out by the

mortgagee under sub-article (1) including any reasonable costs

incurred for such purpose, the mortgagee shall pay the surplus as

follows

(a) to creditors with subsequently ranking rights or

interests of which the mortgagee has been given

notice, in order of priority according to applicable law;

and

(b) thereafter, pay any remaining balance to the mortgagor.

(3) In the event of disagreement as to the ranking between the

mortgagee and, or the creditors having claims against the aircraft or

engine, the mortgagee or any creditor satisfying the court of its

claim on the aircraft or engine, or proceeds thereof, may apply to

the court for the court to establish the ranking among themselves,

or other preferred creditors who may join the proceedings within a

period established by the court, for the purposes of this article.

Persons who do not prove to the court that they have a preferred

claim shall not be permitted to participate in the proceedings at this

stage.

(4) The court may order sufficient security to be provided by

the mortgagee over the proceeds held by the mortgagee, but not in

e x c e s s o f su c h pr o c e e ds , p e nd i n g t h e d e t e r m in a ti o n of t h e

application referred to in the preceding sub-article.

(5) This article does not apply to the case of an aircraft being

sold through a judicial auction or a private sale authorised by the

court on the enforcement of a mortgage, international interest or

security interest, but may be applied with the consent of the court if

(a) all the parties to the proceedings have agreed to its application

or (b) the mortgagee acquires the aircraft in the judicial auction in

set-off, in full or partially, of its claims.

(6) In carrying out its functions under this article the

mortgagee shall, with respect to funds held by it, be subject to

fiduciary duties in favour of other creditors participating in the

process and this until the allocation of funds has been agreed or

finally determined by the court, or the proceeds which are not

allocated to its claim are deposited under authority of the court or

such other person as may be agreed among the parties.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 33B Vesting of aircraft object in satisfaction by way of set-off. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1)This article applies at any time after a default has

occurred and notice in writing thereof has been given to the debtor.

(2) The mortgagee, other preferred creditors and the mortgagor

may agree that ownership of (or any other interest of the mortgagor,

including any lessor rights) any aircraft covered by the mortgage

shall vest in the mortgagee in or towards satisfaction of the secured

obligations.

(3) Irrespective of any agreement under the preceding sub-

article, the court may, on the application of the mortgagee, order

that ownership of (or any other interest of the mortgagor) any

aircraft covered by the mortgage is to vest in the mortgagee in or

towards satisfaction of the secured obligations.

(4) The court shall grant an application under the preceding

sub-article only if the amount of the secured obligations, after

taking into account any payment to be made by the mortgagee to

any of the preferred creditors, to be satisfied by such vesting is

more than the value of the aircraft.

(5) At any time before the sale of the mortgaged aircraft or the

making of an order under sub-article (3), the mortgagor or any

interested person may discharge the mortgage by paying in full the

amount secured, and any amount paid by the mortgagee to any of

the preferred creditors, subject to any lease granted by the

mortgagee pursuant to its powers under article 33(1)(d).

(6) Where, after such default, the payment of the amount

secured, and any amount paid by the mortgagee to any of the

preferred creditors, is made in full by an interested person other

than the debtor, that person is subrogated to the rights of the

mortgagee.

(7) Ownership or any other interest of the mortgagor passing

on a sale to a third party under article 33(1)(b) or passing to the

mortgagee under sub-article (2) or (3) of this article shall be free

from any other interest over which the mortgage has priority under

the provisions of this Act.

(8) The mortgagee may designate a fully owned subsidiary or a

controlled entity in which the ownership of the aircraft (or any

other interest of the mortgagor) may be vested for the purposes of

this article.

(9) The provisions of articles 358 to 364 of the Code of

Organization and Civil Procedure shall apply to any applications to

the court under sub-article (3), mutatis mutandis.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 33C Meaning of default. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1)The mortgagor or the mortgagee 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 33 to 33B and

other provisions of this Act.

(2) Where the mortgagor and the mortgagee have not so agreed,

"default" for the purposes of this Act means

(a) the fulfilment of a condition under which the

dissolution of the agreement between the mortgagor

and the mortgagee was expressly covenanted or a

failure by a party to perform his obligations; or

(b) a change in the financial condition of the mortgagor as

provided for in article 1079 of the Civil Code; or

(c) a default which substantially deprives the mortgagee

of what it is entitled to expect under the agreement

between the mortgagor and the mortgagee.

(3) When a default has taken place and a notice thereof is given

to the mortgagor and any guarantor, in accordance with this Act or

the agreement between the parties, such notice shall be valid and

binding and all effects at law and under any agreement between the

parties shall arise without the need of any determination by any

court as to whether a default has occurred or not, as to whether the

benefit of time has been lost or not and as to whether any rights are

immediately enforceable or not.

(4) Where a mortgagee exercises his rights in the preceding

articles, and in any valuation for the purpose, he must exercise such

rights in accordance with any agreement between the parties and in

any event in a commercially reasonable manner and in good faith

so as to ensure fair treatment for the mortgagor.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 34 Transfer of mortgage. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) A registered mortgage over an aircraft or share may be

transferred to any person by an instrument of transfer executed by

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 Malta

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 35 Assignment of part of a debt or other obligation. — Att 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 sub-article (1).

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 36 Transmission of interest of mortgagee by death. — Att 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

transm itted shall make an d sign a declarat ion contain ing 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 Malta Aircraft Register

as mortgagee in the aircraft or share therein.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 37 Amendment of mortgage. — Att 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 Malta 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 sub-articles (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

Malta 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 Malta 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 37A Correction of a mortgage. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1)A correction of an erroneous indication or omission in a

registered mortgage, including an amendment mortgage, of any one

or more of the particulars specified in sub-article (2) may be

effected by the Director General by means of a corrective or

additional entry in the Malta Aircraft Register, on the production of

the following documents

(a) a declaration signed by the mortgagee referring to the

said mortgage and indicating the correction to be

made; and

(b) such other evidence as the Director General may

require.

(2) The correction of an erroneous indication or addition of an

omission as referred to in sub-article (1) may be effected with

reference to the following particulars

(a) details of the aircraft or aircraft engine;

(b) the date of any agreement or document referred to in

the said mortgage;

(c) the name and, or address of any person or organisation

referred to in the said mortgage; or

(d) any other typographical error in the said mortgage.

(3) The correction of any of the above particulars in a

registered mortgage or the addition of any omission shall not affect

the validity or priority of the mortgage, or any of the rights or

powers of the mortgagee.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 37B Modification of the registered details relating to a mortgage. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

It shall be lawful to modify the registered details relating

to a mortgage in the event of a change in the name or the address of

any of the mortgagor or the mortgagee, resulting from corporate

events, including shareholder or director resolutions,

amalgamations, divisions or similar events. This shall be made by

means of a note submitted by the mortgagee to the Director General

together with any evidence of the change of name or address. The

Director General shall thereupon make an annotation in the Malta

Aircraft Register reflecting such modifications.".

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 38 Entry of discharge of mortgage. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Where a registered mortgage is discharged, the Director

General shall, on the production of the mortgage deed, with a

receipt for the secured money endorsed thereon, duly signed and

attested, make an entry in the Malta Aircraft Register to the effect

that the mortgage has been discharged.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 39 Transfers and mortgages not to have effect unless registered. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 40 Loss of original mortgage deed. — Att 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

Malta 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 Malta Aircraft Register that the transfer or discharge of

the mortgage has taken place in virtue of a sworn declaration.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 41 Recognition of foreign mortgages and foreign security interests. — Att 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 Malta 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 and, or an international 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.

(5) The powers referred to in sub-article (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 sub-article (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) Where the holder of a security interest or of an international

interest registered in accordance with the First Schedule seeks the

support of the court in the course of the exercise of any remedies

competent to him in terms of this Act he shall do so by virtue of an

application filed in the competent court.

(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

t h e r i g h t s o f a n y r e g i st er e d m o r t g a g e e o r t h e h o l d e r o f 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 41A Extension of rights under Maltese law. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

When the proper law of a conditional sale or a lease agreement

is Maltese law and a 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 article 41(3)

to (6) without prejudice to its rights under the First Schedule

PART V

SPECIAL PRIVILEGES ON AIRCRAFT

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 42 Special privileges on aircraft. — Att 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 sub-article (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

debt or and u pon th e termin at ion of his temp orary t itle 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 sub-article (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.

(6) The above provisions shall apply to aircraft engines mutatis

mutandis.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 43 Possessory lien or privilege. — Att 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 Organization

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 44 Ranking of creditors. — Att 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 Malta

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 sub-

article (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 sub-article (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, and thereafter shall rank

(a) other overriding non-consensual rights and interests

arising under foreign law which do not have priority

under Chapter X of the First Schedule;

(b) any security interest governed by a foreign law and

recognised in accordance with article 41 which shall

rank after the claims referred to in the preceding

articles; and

(c) general hypothecs and privileges, whether general or

over particular movables, which shall rank after the

debts referred to in the preceding articles.

(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 sub-articles (2) and (3) of the

same article;

(c) rights referred to in sub-article (3)(a) and (b) shall rank

among themselves equally and shall share in such fund

pro rata up to the amount of their claim and rights

referred to in sub-article (3)(c) 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

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 45 Interpretation. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Words and expressions used in this Part have the 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 46 Cape Town Convention and Aircraft Protocol to have the force of law in Malta. — Att 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 sub-article (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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 47 Relevant court for the purposes of the Cape Town Convention and Aircraft Protocol. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 48 Cape Town Convention and Aircraft Protocol to be judicially noticed. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 49 Protection of operation of the International Registry. — Att 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

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 50 Entitlement to registration. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 51 Applicable Part. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 52 Registration of international interest. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Where an international interest is registered in terms of

Part VI and the First Schedule, such international interest will be

fully 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 53 In case of conflict between two Parts. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(Deleted by Act LII. 2016.25)

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 54 Registered international interest to operate independently of the application of Part IV. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

Apart from the specific exception referred to in article 52,

the registration of a mortgage under Part IV shall under no

circumstances prejudice the operation of an international interest

registered under Part VI and the First Schedule.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 55 Prevalence of Part VI and the First Schedule. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In case of conflict on any matter between Part IV on the

one hand and Part VI and the First Schedule on the other hand, Part

VI and the First Schedule shall prevail over Part IV; however, to the

AIRCRAFT REGISTRATION

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

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 56 Powers to make regulations. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

In addition to the matters on which the Minister is

empowered to prescribe rules under the provisions of this Act, the

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;

(o) the requirements for registration, the conditions for

operation and generally the regulation of aircraft when

used for peacekeeping operations or humanitarian

purposes, even if configured as military or state

aircraft;

(p) the registration, operation or any matter related to

unmanned aerial systems, unmanned aerial vehicles,

remotely piloted aerial systems or any other similar

system or vehicle; and

(q) any other matter which may be further regulated for

the better implementation of the provisions of this Act.

(2) The Minister may by regulations amend any of the

provisions of the Schedules to this Act, other than the provisions of

the First Schedule.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 57 Segregated cells within aviation undertakings. — Att 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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 58 Conflict between texts and language of the First Schedule and regulations. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) In case of conflict between the Maltese and English

text of this Act, the English text shall prevail.

(2) Any rules or regulations made pursuant to any provision of

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 59 Transitory provisions. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) All registered aircraft that have been validly entered in

the register before the entry into force of this Act shall continue to

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 60 Application of Laws. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

The following enactments shall apply in the case of the

landing in or departure from Malta of passengers from or by any

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.

Laws of Malta — Chapter 503 — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru
Art. 61 Administrative sanctions. — Att dwar ir-Reġistrazzjoni ta’ Inġenji tal-Ajru Open official source

(1) Notwithstanding any other provision of this Act, the

offences listed in the First Column of the Sixth Schedule shall be

administrative offences punishable by the Authority.

(2) The imposition by the Authority of an administrative

sanction in terms of this article shall be without prejudice to any

other consequences of the act or omission of the offender under

civil or administrative law.

(3) The Authority shall observe the guarantees of fair and

public hearing in its determination as to whether a person is guilty

of an administrative offence in terms of this article.

(4) When the Authority is satisfied that a person has

committed an offence against any provision of this Act listed in the

First Column of the Sixth Schedule to this Act, the Authority may -

(a) issue a warning in writing to such person; or

(b) impose an administrative penalty on such person up to

an amount as established in the Second Column of the

Sixth Schedule and subject to the provisions of

paragraph 1 of the said Schedule

Provided that if such person is found guilty of more than one

offence in the same charge, the Authority shall only impose the

payment of the higher penalty attributed to the offence in the same

charge as listed in the Sixth Schedule

Provided further that the Authority may also impose a suspended

penalty which penalty shall be paid within such period as the

Authority may establish. The Authority may also determine such

conditions, limitations and restrictions both with regard to the

penalty and the suspended penalty as it may deem fit.

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