Cape Town Convention and Aircraft Protocol
New Zealand acceded to the 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 Aircraft Protocol) on July 2010.
The Civil Aviation (Cape Town Convention and Other Matters) Amendment Act 2010(external link) amended the Civil Aviation Act 1990(external link) to give the Convention and Protocol the force of law in New Zealand.
What does the Convention Do?
International financiers of aircraft previously had to rely on differing national laws to protect their investments. When there was a default by the debtor getting the aircraft back sometimes required protracted legal proceedings in several countries. Lenders sought a premium on lending to cover this risk.
The Convention enables creditors to register their interest in the aircraft and gives them standard remedies in the event of default by the debtor. The Aircraft Protocol includes the ability to require removal of an aircraft from a particular national civil aircraft register and export it.
This should give organisations involved in aircraft financing more confidence which will permit discounted finance costs. Debtors that have maintained their financial obligations are protected from unwarranted seizure of the assets by creditors.
How to register an aircraft
Information on the International Registry, including explanatory videos and documentation can be found on the International Registry website(external link).
The Civil Aviation Authority is the registrar in New Zealand. Information on aircraft covered by the Convention and how to register an aircraft is on the CAA website.(external link)
Read additional material here. This material includes the texts of the Convention and the Aircraft Protocol and material relating to the Civil Aviation (Capetown Convention and Other Matters) Amendment Act 2010.