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 Air-
craft 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 Com-
mittee on Transportation and Infrastructure 
A BILL 
To amend title 49, United States Code, to make certain 
conforming changes to provisions governing the registra-
tion of aircraft and the recordation of instruments in 
order to implement the Convention on International In-
terests in Mobile Equipment and the Protocol to the 
Convention on International Interests in Mobile Equip-
ment on Matters Specific to Aircraft Equipment, known 
as the ‘‘Cape Town Treaty’’.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as ‘‘Cape Town Treaty Imple-
mentation Act of 2004’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) The Cape Town Treaty (as defined in sec-
tion 44114 of title 49, United States Code) extends 
modern commercial laws for the sale, finance, and 
lease of aircraft and aircraft engines to the inter-
national arena in a manner consistent with United 
States law and practice. 
(2) The Cape Town Treaty provides for inter-
nationally established and recognized financing and 
leasing rights that will provide greater security and 
commercial predictability in connection with the fi-
nancing 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, in-
cluding 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 regulations are required since the asset-based fi-
nancing 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 estab-
lished under the Cape Town Treaty will work in tan-
dem with current aircraft document recordation sys-
tems of the Federal Aviation Administration, 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 Aviation Ad-
ministration to complete the necessary rulemaking proc-
esses as expeditiously as possible, and clarifying the appli-
cability 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’’; 
(2) by striking ‘‘and’’ at the end of paragraph 
(2)(D);
(3) by redesignating paragraph (3) as para-
graph (4); 
(4) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) notice of prospective assignments and pro-
spective international interests in, and prospective 
sales of, aircraft or aircraft engines under the Cape 
Town Treaty; and’’; and 
(5) in paragraph (4) (as so redesignated) by 
striking ‘‘clause (1) or (2) of this subsection’’ and 
inserting ‘‘paragraph (1) or (2) and releases, can-
cellations, discharges, and satisfactions related to 
the prospective assignment, interest, or sale for 
which a notice is recorded under paragraph (3)’’. 
(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 permitted 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 recorded under 
subsection (a)(3); and 
‘‘(C) aircraft engines. 
‘‘(2) AUTHORIZATION
FOR
REGISTRATION
OF 
AIRCRAFT.—A registration with the International 
Registry relating to an aircraft described in para-
graph (1) (other than subparagraph (C)) is valid 
only if (A) the person seeking the registration first 
files documents eligible for recording under sub-
section (a) and relating to the registration with the 
United States Entry Point, and (B) the United 
States Entry Point authorizes the registration.’’. 
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 re-
quirements for—
(1) the registration of aircraft previously reg-
istered in a country in which the Cape Town Treaty 
is in effect;
(2) the cancellation of registration of a civil air-
craft of the United States based on a request made 
in accordance with the Cape Town Treaty; and 
(3) the filing of documents eligible for recording 
under section 44107(a)(1) or 44107(a)(2) of title 
49, United States Code, within a specified time pe-
riod in order to maintain the validity of such pro-
spective interests. 
(c) EXPEDITED RULEMAKING PROCESS.—
(1) INTERIM FINAL RULE.—
(A) 
PUBLICATION.—The 
Administrator 
shall issue regulations under this section by 
publishing an interim final rule by the 60th day 
following the date of enactment of this Act. 
(B) PUBLIC
COMMENT.—The Adminis-
trator shall seek public comment on the interim 
final rule. 
(C) EFFECTIVE DATE.—The interim final 
rule shall be effective on the date the Cape 
Town Treaty enters into force with respect to 
the United States. 
(D) ECONOMIC ANALYSIS.—The Adminis-
trator shall not be required to prepare an eco-
nomic analysis of the cost and benefits of the 
interim final rule.
(2) FINAL
RULE.—The Administrator shall 
issue a final rule under this section by December 31, 
2004. 
(d) APPLICABILITY
OF TREATY.—Notwithstanding 
parts 47.37(a)(3)(ii) and 47.47(a)(2) of title 14, Code of 
Federal Regulations, Articles IX(5) and XIII of the Cape 
Town Treaty shall apply to the matters described in sub-
section (b) until the earlier of the effective date of the 
interim 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 fol-
lowing: 
‘‘§ 44114. Definitions 
‘‘In this chapter, the following definitions apply: 
‘‘(1) CAPE
TOWN
TREATY.—The term ‘Cape 
Town Treaty’ means the Convention on Inter-
national Interests in Mobile Equipment, as modified 
by the Protocol to the Convention on International
Interests in Mobile Equipment on Matters Specific 
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 Aircraft Registry. 
‘‘(3) INTERNATIONAL
REGISTRY.—The term 
‘International Registry’ means the registry estab-
lished under the Cape Town Treaty.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing:
‘‘41114. 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 44114 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 441 
of such title or any legal rights relating to such registra-
tion or recordation.
Æ