Source: https://www.caacayman.com/aircraft-registry/mortgaging-of-aircraft/
Timestamp: 2020-08-03 20:55:14
Document Index: 122767114

Matched Legal Cases: ['art 1', 'art 1', 'art 2', 'art 3', 'art 3', 'art 4', 'art 4']

Mortgaging of Aircraft – OFFICIAL SITE of the Civil Aviation Authority of the Cayman Islands
Mortgaging of AircraftWEBBY2020-03-23T10:23:32-05:00
When an aircraft is financed and there is an attached mortgage, the mortgage can be registered on the Cayman Islands Register of Aircraft Mortgages under The Civil Aviation Authority Law (2005 Revision) – The Mortgaging of Aircraft Regulations, 2015 (MAR).
Registration of Aircraft Mortgage – MAR section 4
To register a mortgage under section 4 of the Regulations on an aircraft registered in the Cayman Islands, a Mortgage Registration Application should be completed and signed by the mortgagee/applicant. Details to be completed include – date of mortgage, description of the aircraft, sum secured by the mortgage and any further advances after the initial amount, name and address of the mortgagor and the register number of the priority notice if any. The mortgage application should be accompanied by the executed Mortgage Deed and if necessary, to reference the sum secured by the mortgage, the related Loan Agreement. These documents should be emailed to registrationenquiries@caacayman.com and the appropriate fee [sec 9 (2) (b) of Air Navigation (Fees)Regulations, 2010] to be paid to effect the mortgage registration. The original of the application and a certified true copy of the mortgage can be sent to the CAACI after the mortgage has been registered. This application need not be notarized or signed by the mortgagor. An aircraft mortgage cannot be registered in the Cayman Islands until the aircraft is registered.
Entry of a Priority Notice – MAR section 5
If an intended mortgage has not yet been finalised or the aircraft is not yet registered, a priority notice can be filed with the CAACI to secure the order of priority of the mortgage should there be another mortgagee intending to register a mortgage. A priority notice is effective for 14 days and can be renewed indefinitely but there is a charge of CI$250 at each renewal [sec 9 (2)(a) of Air Nav (Fees) Regulations, 2010]. To request a registration of a priority notice a Priority Notice Application should be completed and sent by email to registrationenquiries@caacayman.com. It is not necessary to include any final mortgage documents with the priority notice application but a draft of the mortgage deed should be sent to crosscheck the particulars.
Change in Particulars of a Registered Mortgage – MAR section 8
Should there be a change in details of the registered mortgage such as the name of the mortgagee (occurs frequently with the merging of banks and financing entities), simple change in name of mortgagor, or the address of either party to the mortgage, a Change in Particulars Form should be submitted and signed by the mortgagor and the mortgagee. The application should be supported by the legal documents evidencing the change – amended mortgage deed, name change notification etc. The completed form and documents is to be sent to registrationenquiries@caacayman.com and the filing fee of CI$250 to be sent to the CAACI.
Discharge of Registered Mortgage – MAR section 9
Upon discharge of a mortgage, the mortgagor can apply to have the mortgage discharged from the Register of Aircraft Mortgages by completing a Mortgage Discharge Form and having the mortgagee sign the form in agreement to the discharge. The mortgagee’s signature should be notarized. The form will be accepted in counterparts. The discharge application must also be accompanied by a Deed of Release of Mortgage by the Mortgagee. Any other documents which can support this discharge should also be sent. The CAACI also requires proof of authorised signature of the mortgagee to ensure that the discharge of the mortgage is legally authorised. The completed forms and documents should be sent by email to registrationenquiries@caacayman.com. The fee to discharge the mortgage is CI$250.
Removal of Registered Mortgage – MAR section 10
In the case of a mortgage that is not being discharged between the mortgagor and mortgagee but it is required to be removed from the Cayman Islands Aircraft Mortgage Register, section 10 of the Mortgage Regulations applies.
The mortgagee will apply to the CAACI to have the mortgage removed stating the reason that it is to be removed, that the mortgagor has agreed to its removal and the date it is to be removed. This application should take the form of a Letter to the Director-General of the CAACI on the mortgagee’s letterhead. The letter would be notarized and be accompanied by an authorized signatory list of the mortgagee. The fee to remove a mortgage is CI$250.
Search of Mortgage Register – MAR section 12
The Authority shall, on the application of any person and on payment by the applicant of the appropriate duty, notify the applicant whether or not there are any entries in the Register relating to any aircraft specified in the application by reference to its nationality and registration marks.
The applicant should send an email request for a search of the Cayman Islands Mortgage Register, stating the aircraft registration mark, make and manufacturer’s serial number for which the search shall be made. A transcript detailing the results of the search will be sent to the applicant by email for a fee of US$121.95 (CI$100). This fee can be paid by credit card through the online payment portal at the bottom right of this page. Other methods of payment can be viewed here.
Mortgage remaining registered for a deregistered aircraft – MAR section 13
If a registered mortgage on Cayman Islands Register of Aircraft Mortgages is not being discharged and the mortgage will temporarily remain registered until after the aircraft is deregistered, the CAACI will require a letter of authorization from the mortgagee, on mortgagee’s letterhead, to deregister the aircraft which also indicates how the mortgage is to be dealt with. The following are items required in the letter of authorisation:
Description of the mortgage, including the reference number
Indication of proposed date of deregistration of aircraft and new state of registry
That the mortgage is not being discharged nor will it be deregistered from the Cayman Islands Mortgage Register prior to the aircraft being deregistered
Authority for the aircraft to be deregistered and have the mortgage referenced on the deregistration certificate along with any filed IDERAs
Indication of when the mortgage will be deregistered from the Cayman Islands Mortgage Register
The CAACI will require proof of authorized signature of mortgagee
Cape Town Convention and the International Register
After the UK ratification of Cape Town effective November 1, 2015 and its extension to the Cayman Islands, The Cayman Islands Government along with the Civil Aviation Authority of the Cayman Islands announced the enactment of The International Interests in Mobile Equipment (Cape Town Convention) Law, 2015, which brings the Cape Town Convention into force in the Cayman Islands effective 1 November 2015 and, consequently, the Cayman Islands will have international recognition under the Cape Town Convention.
Accordingly, relevant filings such as the Irrevocable Deregistration and Export Request Authorisation (IDERA) and the Consent to Deregister an aircraft from the Cayman Islands Aircraft Register, can now legally be filed with the Cayman Islands Aircraft Register under the Cape Town Protocol. Such filings are to be notarised and carry a fee of CI$250/US$304.88.
Filings on the International Register for a Cayman Islands registered aircraft should be done independently by interested parties. Further enquiries can be made to registrationenquiries@caacayman.com.
Part 1: Mortgage Registration ApplicationWEBBY2020-02-20T11:25:37-05:00
Part 1: Mortgage Registration Application
Part 2: Filing a Priority NoticeWEBBY2020-02-20T11:25:37-05:00
Part 3: Change in ParticularsWEBBY2020-02-20T11:25:38-05:00
Part 3: Change in Particulars
Part 4: Mortgage DischargeWEBBY2020-02-20T11:25:38-05:00
Part 4: Mortgage Discharge