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Many of us may board an aeroplane without a second thought on issues relating to financing, sale, lien or mortgage of the aircraft. Why do we even want to know? We need to know this because there are many issues regulating the different parts of the aircraft that we board. Different from principles of public air law found in the Convention on International Civil Aviation signed on 7 December 1944 by 52 States, the present private law Convention on aircraft financing is called the Cape Town Convention on International Interests in Mobile Equipment (also called the Cape Town Convention) and Aircraft Protocol. It was adopted by UNIDROIT on 16 November 2001 and it entered into force on 1 March 2006. The two Conventions do meet at some point in relation to mortgages and financing of aircraft engines and parts. With 59 contracting States, the Cape Town Convention represents a very important private commercial law treaty which sets out the law on security and related interests in aircraft objects. Upon ratifying the Convention, it assists States in the uniform adoption of national laws in this field. Professor Sir Roy Goode’s works in drawing up the Official Commentary on the Convention and Aircraft Protocol are only too well-known.
This article seeks to acccount for the implementation of the Cape Town Convention in Malaysia, and to this end highlights the various laws and regulations that impact upon the area before and after the adoption of the Convention . The paper highlights certain lacunae and uncertainties where applicable, particularly the Questionnaire. Systematically reviewing publicly accessible documents and information shows that in Malaysia, there is some systematisation in the implementation of the Cape Town Convention processes delivering on our legislative obligations to meet the Convention’s objectives.
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Lee Tat Boon, “Security over Collateral” http://www.lexmundi.com/Document.asp?DocID=1027.
Cheah, Lorraine and Grace C.G. Yeoh. 2003. Getting the deal through – Restructuring and insolvency: Malaysia, http://www.shearndelamore.com/assets/templates/images/pdf/paper_publications/Restructuring_and_Insolvency_2009.pdf.
Wool, Jeffrey. Treaty design, implementation, and compliance benchmarking economic benefit – A framework as applied to the Cape Town Convention [2012–4]. Uniform Law Review, 633.
Roger Tan, “Rights of Assignors and Assignees to sue under an Absolute Assignment and Assignment by way of Charge Used as a Security for Loan” (2003), http://www.malaysianbar.org.my/index2.php?option=com_content&do_pdf=1&id=97.
- Implementation of the Cape Town Convention in Malaysia
See Eng Teong
- Chapter 6
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