The Cape Town Convention on International Interests in Mobile Equipment (the Cape Town Convention) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the Protocol) (the Cape Town Convention and the Protocol together the Convention), which came into effect on 1 March 2006, has as its main objective, the facilitation of aircraft finance by standardising transactions involving moveable property with respect to „aircraft objects‟ (airframes, aircraft engines and helicopters) by the creation of an electronic international registry of „international interests‟ which are recognised by those states that have implemented the Convention (Contracting State) and to provide various default remedies to a creditor (including in the context of insolvency) should the need arise.

To date the Convention has not been extended to Bermuda as it can only directly apply through implementation by the United Kingdom. However, it is expected that the United Kingdom will ratify the Convention later this year and a group of Bermuda specialists from the public and private sector, including Appleby, is currently working towards the implementation of the Convention and the enactment of domestic legislation in order to give effect to the relevant provisions of the Convention.

This article considers some aspects of the Convention and how the extension to Bermuda will benefit the future of its aircraft finance industry.

Share
Twitter LinkedIn Email Save as PDF
More Publications
1 Sep 2021 |

Changes to rules on Permanent Residency Certificates

The Ministry of Labour has recently issued a policy paper, ‘Securing Permanency for Long-Term Resi...

26 Aug 2021 |

What to remember when an employee leaves

Just as when a new recruit is on-boarded, there are a variety of tasks an employer needs to deal wit...

23 Aug 2021 |

BMA seeks more seamless marketplace with ILS process enhancements

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catast...

17 Aug 2021 |

ILS Bermuda Executive Roundtable 2021

Despite the impacts of the Covid-19 pandemic and subsequent restrictions on travel and face-to-face ...

13 Aug 2021 |

A digital asset future: closer than we think

Most of us at some point in our lives have participated in a rewards programme either at our favouri...

26 Jul 2021 |

What not to forget when an employee leaves

There are many practical and ‘housekeeping’ matters that employers need to deal with when an emp...

Contributors: Jordan Knight
23 Jul 2021 |

Contributed surplus: it’s not capital!

Last week, in part one, we discussed the meaning of share premium, the various ways a company may us...

16 Jul 2021 |

Share premium: do you have it?

When the issuance of shares by a company is discussed, the first thought that comes to mind is the s...

2 Jul 2021 |

No question you’ll see more life reinsurers in Bermuda

While the emergence of property and casualty (P&C) startups in Bermuda is likely to be muted in ...

2 Jul 2021 |

Bermuda: An introduction to Dispute Resolution

This edition discusses Current Economic Conditions and Dispute Resolution Activity, Trends & Dev...

Contributors: Jordan Knight