I 

108TH CONGRESS 

2D SESSION H. R. 4226

To amend title 49, United States Code, to make certain conforming changes 

to provisions governing the registration of aircraft and the recordation 

of instruments in order to implement the Convention on International 

Interests in Mobile Equipment and the Protocol to the Convention on 

International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, known as the ‘‘Cape Town Treaty’’. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 28, 2004

Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. MICA, and Mr. 

DEFAZIO) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure 

A BILL

To amend title 49, United States Code, to make certain 

conforming changes to provisions governing the registration of aircraft and the recordation of instruments in 

order to implement the Convention on International Interests in Mobile Equipment and the Protocol to the 

Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, known 

as the ‘‘Cape Town Treaty’’.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as ‘‘Cape Town Treaty Imple3 mentation Act of 2004’’. 

4 SEC. 2. FINDINGS AND PURPOSE. 

5 (a) FINDINGS.—Congress finds the following: 

6 (1) The Cape Town Treaty (as defined in sec7 tion 44114 of title 49, United States Code) extends 

8 modern commercial laws for the sale, finance, and 

9 lease of aircraft and aircraft engines to the inter10 national arena in a manner consistent with United 

11 States law and practice. 

12 (2) The Cape Town Treaty provides for inter13 nationally established and recognized financing and 

14 leasing rights that will provide greater security and 

15 commercial predictability in connection with the fi16 nancing and leasing of highly mobile assets, such as 

17 aircraft and aircraft engines. 

18 (3) The legal and financing framework of the 

19 Cape Town Treaty will provide substantial economic 

20 benefits to the aviation and aerospace sectors, in21 cluding the promotion of exports, and will facilitate 

22 the acquisition of newer, safer aircraft around the 

23 world. 

24 (4) Only technical changes to United States law 

25 and regulations are required since the asset-based fi26 nancing and leasing concepts embodied in the Cape 
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1 Town Treaty are already reflected in the United 

2 States in the Uniform Commercial Code. 

3 (5) The new electronic registry system estab4 lished under the Cape Town Treaty will work in tan5 dem with current aircraft document recordation sys6 tems of the Federal Aviation Administration, which 

7 have served United States industry well. 

8 (6) The United States Government was a leader 

9 in the development of the Cape Town Treaty. 

10 (b) PURPOSE.—Accordingly, the purpose of this Act 

11 is to provide for the implementation of the Cape Town 

12 Treaty in the United States by making certain technical 

13 amendments to the provisions of chapter 441 of title 49, 

14 United States Code, directing the Federal Aviation Ad15 ministration to complete the necessary rulemaking proc16 esses as expeditiously as possible, and clarifying the appli17 cability of the Treaty during the rulemaking process. 

18 SEC. 3. RECORDATION OF SECURITY INSTRUMENTS. 

19 (a) ESTABLISHMENT OF SYSTEM.—Section 44107(a) 

20 of title 49, United States Code, is amended—

21 (1) in paragraph (2)(A) by striking ‘‘750’’ and 

22 inserting ‘‘550’’; 

23 (2) by striking ‘‘and’’ at the end of paragraph 

24 (2)(D); 
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1 (3) by redesignating paragraph (3) as para2 graph (4); 

3 (4) by inserting after paragraph (2) the fol4 lowing: 

5 ‘‘(3) notice of prospective assignments and pro6 spective international interests in, and prospective 

7 sales of, aircraft or aircraft engines under the Cape 

8 Town Treaty; and’’; and 

9 (5) in paragraph (4) (as so redesignated) by 

10 striking ‘‘clause (1) or (2) of this subsection’’ and 

11 inserting ‘‘paragraph (1) or (2) and releases, can12 cellations, discharges, and satisfactions related to 

13 the prospective assignment, interest, or sale for 

14 which a notice is recorded under paragraph (3)’’. 

15 (b) INTERNATIONAL REGISTRY.—Section 44107 of 

16 such title is amended by adding at the end the following: 

17 ‘‘(e) INTERNATIONAL REGISTRY.—

18 ‘‘(1) DESIGNATION OF UNITED STATES ENTRY

19 POINT.—As permitted under the Cape Town Treaty, 

20 the Federal Aviation Administration Civil Aviation 

21 Registry is designated as the United States Entry 

22 Point to the International Registry relating to—

23 ‘‘(A) civil aircraft of the United States; 

24 ‘‘(B) an aircraft for which a United States 

25 identification number has been assigned but 
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1 only with regard to a notice recorded under 

2 subsection (a)(3); and 

3 ‘‘(C) aircraft engines. 

4 ‘‘(2) AUTHORIZATION FOR REGISTRATION OF

5 AIRCRAFT.—A registration with the International 

6 Registry relating to an aircraft described in para7 graph (1) (other than subparagraph (C)) is valid 

8 only if (A) the person seeking the registration first 

9 files documents eligible for recording under sub10 section (a) and relating to the registration with the 

11 United States Entry Point, and (B) the United 

12 States Entry Point authorizes the registration.’’. 

13 SEC. 4. REGULATIONS. 

14 (a) IN GENERAL.—The Administrator of the Federal 

15 Aviation Administration shall issue regulations necessary 

16 to carry out this Act, including any amendments made by 

17 this Act. 

18 (b) CONTENTS OF REGULATIONS.—Regulations to be 

19 issued under this Act shall specify, at a minimum, the re20 quirements for—

21 (1) the registration of aircraft previously reg22 istered in a country in which the Cape Town Treaty 

23 is in effect; 
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1 (2) the cancellation of registration of a civil air2 craft of the United States based on a request made 

3 in accordance with the Cape Town Treaty; and 

4 (3) the filing of documents eligible for recording 

5 under section 44107(a)(1) or 44107(a)(2) of title 

6 49, United States Code, within a specified time pe7 riod in order to maintain the validity of such pro8 spective interests. 

9 (c) EXPEDITED RULEMAKING PROCESS.—

10 (1) INTERIM FINAL RULE.—

11 (A) PUBLICATION.—The Administrator 

12 shall issue regulations under this section by 

13 publishing an interim final rule by the 60th day 

14 following the date of enactment of this Act. 

15 (B) PUBLIC COMMENT.—The Adminis16 trator shall seek public comment on the interim 

17 final rule. 

18 (C) EFFECTIVE DATE.—The interim final 

19 rule shall be effective on the date the Cape 

20 Town Treaty enters into force with respect to 

21 the United States. 

22 (D) ECONOMIC ANALYSIS.—The Adminis23 trator shall not be required to prepare an eco24 nomic analysis of the cost and benefits of the 

25 interim final rule. 
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1 (2) FINAL RULE.—The Administrator shall 

2 issue a final rule under this section by December 31, 

3 2004. 

4 (d) APPLICABILITY OF TREATY.—Notwithstanding 

5 parts 47.37(a)(3)(ii) and 47.47(a)(2) of title 14, Code of 

6 Federal Regulations, Articles IX(5) and XIII of the Cape 

7 Town Treaty shall apply to the matters described in sub8 section (b) until the earlier of the effective date of the 

9 interim final rule under this section or December 31, 

10 2004. 

11 SEC. 5. LIMITATION ON VALIDITY OF CONVEYANCES, 

12 LEASES, AND SECURITY INSTRUMENTS. 

13 Section 44108(c)(2) of title 49, United States Code, 

14 is amended by striking the period at the end and inserting 

15 ‘‘or the Cape Town Treaty, as applicable.’’. 

16 SEC. 6. DEFINITIONS. 

17 (a) IN GENERAL.—Chapter 441 of title 49, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘§ 44114. Definitions 

21 ‘‘In this chapter, the following definitions apply: 

22 ‘‘(1) CAPE TOWN TREATY.—The term ‘Cape 

23 Town Treaty’ means the Convention on Inter24 national Interests in Mobile Equipment, as modified 

25 by the Protocol to the Convention on International 
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1 Interests in Mobile Equipment on Matters Specific 

2 to Aircraft Equipment, signed at Rome on May 9, 

3 2003. 

4 ‘‘(2) UNITED STATES ENTRY POINT.—The term 

5 ‘United States Entry Point’ means the Federal 

6 Aviation Administration Civil Aircraft Registry. 

7 ‘‘(3) INTERNATIONAL REGISTRY.—The term 

8 ‘International Registry’ means the registry estab9 lished under the Cape Town Treaty.’’. 

10 (b) CONFORMING AMENDMENT.—The analysis for 

11 such chapter is amended by adding at the end the fol12 lowing:

‘‘41114. Definitions.’’.

13 SEC. 7. EFFECTIVE DATE AND PRESERVATION OF PRIOR 

14 RIGHTS. 

15 This Act, including any amendments made by this 

16 Act, shall take effect on the date the Cape Town Treaty 

17 (as defined in section 44114 of title 49, United States 

18 Code) enters into force with respect to the United States 

19 and shall not apply to any registration or recordation that 

20 was made before such effective date under chapter 441 

21 of such title or any legal rights relating to such registra22 tion or recordation.

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