The Cape Town Convention on International Interests in Mobile Equipment (CTC) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the Protocol, and together with the CTC, the Convention) came into force on 1 March, 2006. The Convention facilitates aircraft finance transactions by providing a regularized electronic international registry of “international interests” over moveable property (the International Registry), such International Registry being recognized in all Contracting States (being countries which have implemented the Convention). Following registration on the International Registry, if and as required, the Convention provides a framework for dispute management as well as remedies and relief available to creditors.
The UK government has announced, in its Response to its 2010 Call for Evidence, that it is committed to ratifying the Convention. Thereafter, the proposed extension by the UK to overseas territories such as Bermuda, means that the Convention may come into force in Bermuda as early as late 2015. There are a number of steps to be taken before the Convention can be implemented as part of Bermuda law and representatives from both the public and private sector in Bermuda involved with aircraft registration and finance have been working towards the anticipated implementation in order to ensure the alignment of relevant domestic law with the Convention.
