Generally such application must be made by the ROC owner or operator. If the aircraft is subject to a mortgage, the aircraft cannot be de-registered without the mortgagee's certification that the secured debt has been paid. If a mortgage default occurs and the aircraft is sold pursuant to a judicial sale, the CAA will accept a de-registration application from tile new owner. If a default occurs under a foreign company s conditional sale agreement or lease, the foreign company inay apply to tile CAA for de-registration of tile aircraft by submitting evidence of the ROC purchaser's or lessee's default. For many years, a declared state of hostilities existed between the ROC and Mainland China, but this period of hostilities has recently been officially terminated.
Some restrictions apply to aircraft purchases by ROC airlines.
Under the Guidelines for Administration of Civil Air Transportation Business, passenger aircraft to be purchased by ROC airlines must be new and cargo aircraft should be less than ten years old. The mortgage agreement should, among other things, include a description of the underlying debt, the collateral and the nature of the mortgagee's enforcement rights. To record an aircraft mortgage with the CAA, the owner must submit an application, an Aircraft Registration Certificate, an original executed copy of the mortgage, and a summary of the terms of the mortgage. Mortgage agreement does not require legalisation, notarisation or, in the case of foreign companies, sealing. The CAA does not keep an aircraft mortgage registry, but will note the details of the submitted mortgage on the Aircraft Registration Certificate.