IB 
Union Calendar No. 304 
108TH CONGRESS 
2D SESSION 
H. R. 4226 
[Report No. 108–526] 
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 
JUNE 8, 2004 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 28, 2004] 
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 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 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, includ-
ing 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 established 
under the Cape Town Treaty will work in tandem 
with current aircraft document recordation systems 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 amend-
ments to the provisions of chapter 441 of title 49, United 
States Code, directing the Federal Aviation Administration 
to complete the necessary rulemaking processes as expedi-
tiously 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 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 filed under paragraph 
(2); and 
‘‘(C) aircraft engines. 
‘‘(2) SYSTEM FOR FILING NOTICE OF PROSPEC-
TIVE INTERESTS.— 
‘‘(A) ESTABLISHMENT.—The Administrator 
shall establish a system for filing notices of pro-
spective assignments and prospective inter-
national interests in, and prospective sales of,
aircraft or aircraft engines described in para-
graph (1) under the Cape Town Treaty. 
‘‘(B) MAINTENANCE OF VALIDITY.—A filing 
of a notice of prospective assignment, interest, or 
sale under this paragraph 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 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 subsection (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; and 
(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. 
(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 en-
ters 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 benefits 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 sub-
section (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 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 Avia-
tion 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 441 of such title 
or any legal rights relating to such registration or recorda-
tion.
Union Calendar No. 304 
108TH CONGRESS 
2D SESSION 
H. R. 4226 
[Report No. 108–526] 
A BILL 
To amend title 49, United States Code, to make 
certain conforming changes to provisions gov-
erning the registration of aircraft and the rec-
ordation of instruments in order to implement 
the Convention on International Interests in Mo-
bile Equipment and the Protocol to the Conven-
tion on International Interests in Mobile Equip-
ment on Matters Specific to Aircraft Equipment, 
known as the ‘‘Cape Town Treaty’’. 
JUNE 8, 2004 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed