H. R. 4226
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
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 Equip-
ment and the Protocol to the Convention on International Interests in Mobile
Equipment on Matters Specific to Aircraft Equipment, known as the ‘‘Cape Town
Treaty’’.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as ‘‘Cape Town Treaty Implementation
Act of 2004’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) The Cape Town Treaty (as defined in section 44113
of title 49, United States Code) extends modern commercial
laws for the sale, finance, and lease of aircraft and aircraft
engines to the international arena in a manner consistent with
United States law and practice.
(2) The Cape Town Treaty provides for internationally
established and recognized financing and leasing rights that
will provide greater security and commercial predictability in
connection with the financing and leasing of highly mobile
assets, such as aircraft and aircraft engines.
(3) The legal and financing framework of the Cape Town
Treaty will provide substantial economic benefits to the aviation
and aerospace sectors, including the promotion of exports, and
will facilitate the acquisition of newer, safer aircraft around
the world.
(4) Only technical changes to United States law and regula-
tions are required since the asset-based financing and leasing
concepts embodied in the Cape Town Treaty are already
reflected in the United States in the Uniform Commercial Code.
(5) The new electronic registry system established under
the Cape Town Treaty will work in tandem with current aircraft
document recordation systems of the Federal Aviation Adminis-
tration, which have served United States industry well.
(6) The United States Government was a leader in the
development of the Cape Town Treaty.
(b) PURPOSE.—Accordingly, the purpose of this Act is to provide
for the implementation of the Cape Town Treaty in the United
States by making certain technical amendments to the provisions
of chapter 441 of title 49, United States Code, directing the Federal
H. R. 4226—2
Aviation Administration to complete the necessary rulemaking proc-
esses as expeditiously as possible, and clarifying the applicability
of the Treaty during the rulemaking process.
SEC. 3. RECORDATION OF SECURITY INSTRUMENTS.
(a) ESTABLISHMENT OF SYSTEM.—Section 44107(a) of title 49,
United States Code, is amended—
(1) in paragraph (2)(A) by striking ‘‘750’’ and inserting
‘‘550’’; and
(2) in paragraph (3) by striking ‘‘clause (1) or (2) of this
subsection’’ and inserting ‘‘paragraph (1) or (2)’’.
(b) INTERNATIONAL REGISTRY.—Section 44107 of such title is
amended by adding at the end the following:
‘‘(e) INTERNATIONAL REGISTRY.—
‘‘(1) DESIGNATION OF UNITED STATES ENTRY POINT.—As per-
mitted under the Cape Town Treaty, the Federal Aviation
Administration Civil Aviation Registry is designated as the
United States Entry Point to the International Registry relating
to—
‘‘(A) civil aircraft of the United States;
‘‘(B) an aircraft for which a United States identification
number has been assigned but only with regard to a notice
filed under paragraph (2); and
‘‘(C) aircraft engines.
‘‘(2) 
SYSTEM
FOR
FILING
NOTICE
OF
PROSPECTIVE
INTERESTS.—
‘‘(A) ESTABLISHMENT.—The Administrator shall estab-
lish a system for filing notices of prospective assignments
and prospective international interests in, and prospective
sales of, aircraft or aircraft engines described in paragraph
(1) under the Cape Town Treaty.
‘‘(B) MAINTENANCE OF VALIDITY.—A filing of a notice
of prospective assignment, interest, or sale under this para-
graph and the registration with the International Registry
relating to such assignment, interest, or sale shall not
be valid after the 60th day following the date of the filing
unless documents eligible for recording under subsection
(a) relating to such notice are filed for recordation on
or before such 60th day.
‘‘(3) AUTHORIZATION
FOR
REGISTRATION
OF
AIRCRAFT.—A
registration with the International Registry relating to an air-
craft described in paragraph (1) (other than subparagraph (C))
is valid only if (A) the person seeking the registration first
files documents eligible for recording under subsection (a) and
relating to the registration with the United States Entry Point,
and (B) the United States Entry Point authorizes the registra-
tion.’’.
SEC. 4. REGULATIONS.
(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall issue regulations necessary to carry out this
Act, including any amendments made by this Act.
(b) CONTENTS
OF REGULATIONS.—Regulations to be issued
under this Act shall specify, at a minimum, the requirements for—
(1) the registration of aircraft previously registered in a
country in which the Cape Town Treaty is in effect; and
H. R. 4226—3
(2) the cancellation of registration of a civil aircraft of
the United States based on a request made in accordance
with the Cape Town Treaty.
(c) EXPEDITED RULEMAKING PROCESS.—
(1) FINAL RULE.—The Administrator shall issue regulations
under this section by publishing a final rule by December
31, 2004.
(2) EFFECTIVE DATE.—The final rule shall not be effective
before the date the Cape Town Treaty enters into force with
respect to the United States.
(3) ECONOMIC ANALYSIS.—The Administrator shall not be
required to prepare an economic analysis of the cost and bene-
fits of the final rule.
(d) 
APPLICABILITY
OF
TREATY.—Notwithstanding 
parts
47.37(a)(3)(ii) and 47.47(a)(2) of title 14, of the Code of Federal
Regulations, Articles IX(5) and XIII of the Cape Town Treaty shall
apply to the matters described in subsection (b) until the earlier
of the effective date of the final rule under this section or December
31, 2004.
SEC. 5. LIMITATION ON VALIDITY OF CONVEYANCES, LEASES, AND
SECURITY INSTRUMENTS.
Section 44108(c)(2) of title 49, United States Code, is amended
by striking the period at the end and inserting ‘‘or the Cape Town
Treaty, as applicable.’’.
SEC. 6. DEFINITIONS.
(a) IN GENERAL.—Chapter 441 of title 49, United States Code,
is amended by adding at the end the following:
‘‘§ 44113. Definitions
‘‘In this chapter, the following definitions apply:
‘‘(1) CAPE TOWN TREATY.—The term ‘Cape Town Treaty’
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 Spe-
cific to Aircraft Equipment, signed at Rome on May 9, 2003.
‘‘(2) UNITED STATES ENTRY POINT.—The term ‘United States
Entry Point’ means the Federal Aviation Administration Civil
Aviation Registry.
‘‘(3) INTERNATIONAL
REGISTRY.—The term ‘International
Registry’ means the registry established under the Cape Town
Treaty.’’.
(b) CONFORMING AMENDMENT.—The analysis for such chapter
is amended by adding at the end the following:
‘‘44113. Definitions.’’.
SEC. 7. EFFECTIVE DATE AND PRESERVATION OF PRIOR RIGHTS.
This Act, including any amendments made by this Act, shall
take effect on the date the Cape Town Treaty (as defined in section
44113 of title 49, United States Code) enters into force with respect
to the United States and shall not apply to any registration or
recordation that was made before such effective date under chapter