IIB 
108TH CONGRESS 
2D SESSION 
H. R. 4226
IN THE SENATE OF THE UNITED STATES 
JUNE 23 (legislative day, JUNE 22), 2004
Received; read twice and referred to the Committee on Commerce, Science, 
and Transportation 
AN ACT 
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,
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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 44113 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
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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’’; and 
(2) in paragraph (3) by striking ‘‘clause (1) or 
(2) of this subsection’’ and inserting ‘‘paragraph (1) 
or (2)’’.
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(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 para-
graph (2); and 
‘‘(C) aircraft engines. 
‘‘(2) SYSTEM FOR FILING NOTICE OF PROSPEC-
TIVE INTERESTS.—
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator shall establish 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 fil-
ing of a notice of prospective assignment, inter-
est, or sale under this paragraph and the reg-
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(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 
enters into force with respect to the United States. 
(3) ECONOMIC ANALYSIS.—The Administrator 
shall not be required to prepare an economic anal-
ysis 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 subsection (b) until the earlier of the effective date of 
the final rule under this section or December 31, 2004.
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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: 
‘‘§ 44113. 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 Aviation Registry. 
‘‘(3) INTERNATIONAL
REGISTRY.—The term 
‘International Registry’ means the registry estab-
lished under the Cape Town Treaty.’’.
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(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing:
‘‘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 registra-
tion or recordation.
Passed the House of Representatives June 22, 2004. 
Attest: 
JEFF TRANDAHL, 
Clerk.