108TH CONGRESS
2D SESSION
H. R. 4226
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,
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
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)’’.
(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-
istration with the International Registry relat-
ing 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 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; 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.