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2017 | OriginalPaper | Buchkapitel

2. The Cape Town Convention and Its Implementation in Domestic Law: Between Tradition and Innovation

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Abstract

This chapter is the general report on the subject, drawing on the reports on various jurisdictions contributed to the volume. After giving an overview of the Cape Town Convention and its three Protocols (together as “the Cape Town Convention”), the chapter makes a “functional analysis” of what changes the Cape Town Convention has brought, or will bring, to existing domestic laws of the countries. As a uniform law instrument, the Cape Town Convention chooses one rule from among a variety of them where countries’ rules diverge. However, such unification in a traditional sense is rather limited, and the Cape Town Convention in many respects creates a novel set of rules and works as a sort of law reform. Furthermore, the Cape Town Convention, together with its Registry regulations, introduces a mechanism to ensure that the intended goal is achieved. Having reviewed these various aspects of the Cape Town Convention, this chapter concludes by emphasising how innovative the Cape Town Convention is as uniform law instrument.

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Fußnoten
1
This was so in the Blue Sky case. See William J Glaister, Robert Murphy, Marisa Chan, Ellie Dunne & Julian Acratopulo, Lex situs after Blue Sky: is the Cape Town Convention the solution?, The Cape Town Convention Journal Issue1, p.3 (2012); Dirk Schmalenbach, Recent Developments in Aircraft Finance with Special Regard to the Cape Town Convention, Zeitschrift für Luft- und Weltraumrecht, 64. Jg, S.270 (2015).
 
2
Art.2 (2) of the Base Convention.
 
3
Article 7 of the Base Convention.
 
4
Article 16 of the Base Convention.
 
5
Article 17 (1) of the Base Convention.
 
6
Article 17 (2) (b), (f) of the Base Convention. More details of the appointment of the Registrar is provided in the Protocols. For the Aircraft Protocol, the Registrar’s term of appointment is 5 years (Article XVII (5) of the Aircraft Protocol). The Luxembourg Rail Protocol does not specify the exact term, but provides that the first Registrar shall be appointed for a period of not less than 5 and more than 10 years and that the following terms shall not exceed ten years (Article XII (11) of the Luxembourg Rail Protocol). The Space Protocol has no equivalent provision.
 
7
Art.29 of the Base Convention.
 
8
Article 60(1) of the Base Convention.
 
9
Article XIX of the Aircraft Protocol; Article XIII of the Luxembourg Rail Protocol; Article XXXI of the Space Protocol.
 
10
Article 39(1) of the Base Convention.
 
11
Article 40 of the Base Convention. Further on non-consensual right or interest, John Prichard & David Lloyd, Analysis of Non-Consensual Rights and Interests under Article 39 of the Cape Town Convention, The Cape Town Convention Journal, Issue 2, p.3 (2013).
 
12
Article 8(2) and Article 10 (b) of the Base Convention.
 
13
Article IX (3) of the Aircraft Protocol; Article VII (3) of the Luxembourg Rail Protocol; Article XVII (1) of the Space Protocol. The same phrase is used in Article 8(3) of the Base Convention, but the latter provision is excluded in the abovementioned provisions in the Protocols, to adapt to the wider variety of remedies available under the Protocols.
 
14
Article 8(1) of the Base Convention.
 
15
Article 9(1) and (2) of the Base Convention.
 
16
Compare art.10 with art.8 (6) of the Convention. Sir Roy Goode, Convention on International Interests in Mobile Equipment and Protocol Thereto on Matters Specific to Aircraft Equipment: Official Commentary, Third Edition, para.4.101 (Unidroit, 2013).
 
17
Article 2(4) of the Base Convention.
 
18
Article IX (1) of the Aircraft Protocol.
 
19
Article XIII (2) of the Aircraft Protocol.
 
20
Article XIII (4) of the Aircraft Protocol.
 
21
Article VII (1) of the Luxembourg Rail Protocol.
 
22
Article XIX of the Space Protocol. See Chap. 23.
 
23
MJ Stanford, The availability of a new form of financing for commercial space activities: the extension of the Cape Town Convention to space assets, The Cape Town Convention Journal, Issue1, p.109, at p.121 (2012).
 
24
Article I (2)(h) of the Space Protocol.
 
25
Article XII (1) of the Space Protocol.
 
26
Sir Roy Goode, Convention on International Interests in Mobile Equipment and Protocol Thereto on Matters Specific to Space Assets: Official Commentary, para.5.49 (Unidroit 2013).
 
27
Gilles Cuniberti, Advance relief under the Cape Town Convention, The Cape Town Convention Journal, Issue 1, p.79 (2012).
 
28
Anna Veneziano, Advance relief under the Cape Town Convention and its Aircraft Protocol: A comment on Gilles Cuniberti’s interpretative proposal, The Cape Town Convention Journal, Issue 2, p.185 (2013). Because the remedies under the Cape Town Convention is the exercise of an international interest (property right or in rem right) and not the enforcement of a claim (right to obligations or in personam right), it is not convincing to regard the reliefs under this provision as a measure to preserve the creditor’s position.
 
29
Article 13 of the Base Convention.
 
30
Article X of the Aircraft Protocol; Article VIII of the Luxembourg Rail Protocol; Article XX of the Space Protocol.
 
31
Article 11(1) of the Base Convention.
 
32
Article 30(1) of the Base Convention.
 
33
Article XI of the Aircraft Protocol; Article IX of the Luxembourg Rail Protocol; Article XXI of the Space Protocol.
 
34
Alternative A, Article XI (2) and (7) of the Aircraft Protocol; Alternative A, Article IX (3) and (7) of the Luxembourg Rail Protocol; Alternative A, Article XXI (2) and (8) of the Space Protocol. The Space Protocol entitles the creditor also to private enforcement over the debtor’s rights covered by a rights assignment (Article XXI (3) of the Space Protocol).
 
35
Alternative A, Article XI (3) of the Aircraft Protocol; Alternative A, Article IX (4) of the Luxembourg Rail Protocol; Alternative A, Article XXI (4) of the Space Protocol.
 
36
Alternative B, Article XI (2) and (3) of the Aircraft Protocol; Alternative B, Article IX (3) and (4) of the Luxembourg Rail Protocol; Alternative B, Article XXI (2) and (3) of the Space Protocol.
 
37
Alternative C, Article IX (3) and (4) of the Luxembourg Rail Protocol. See Chap. 22 for the background.
 
38
Howard Rosen, Martin Fleetwood & Benjamin von Bodungen, The Luxembourg Rail Protocol – Extending Cape Town Benefits to the Rail Industry, [2012] Uniform Law Review p.609, at p.613.
 
39
Jeffrey Wool, The case for a commercial orientation to the proposed Unidroit Convention as applied to aircraft equipment, [1999] Uniform Law Review p.289.
 
40
Anthony Saunders, Anand Srinivasan, Ingo Walter & Jeffrey Wool, The Economic Implications of International Secured Transactions Law Reform: A Case Study, The University of Pennsylvania Journal of International Economic Law, vol. 20, p.309, at p. 324 (1999).
 
41
Michael Downey Rice, Railroad Equipment Financing, Transportation Law Journal, Vol.18, p.85 (1989); For the detailed history of the development of ETCs of railway rolling stock, see Francis Rawle, Car Trust Securities, Annual Report of the American Bar Association, p.277 (1885).
 
42
Ronald Scheinberg, Enhanced Equipment Trust Certificates in the Downturn: An Assessment for Banks, Banking Law Journal, Vol.121, p.108 (2004).
 
43
See Gregory Ripple, Note, special Protection in the air[line Industry]: The Historical Development of Section 1110 of the Bankruptcy Code, Notre Dame Law Review, Vol.78, p.281, at pp.287–288 (2002); On the background of the amendments, Max Lowenthal, The Railroad Reorganization Act, Harvard Law Review, Vol.47, p.18 (1933).
 
44
11 USC §1168.
 
45
11 USC §1110.
 
46
Scheinberg, supra note 55, p.114.
 
47
Ikumi Sato & Yoshinobu Zasu, Beyond Conflict of Interest: Lessons from the Cape Town Convention, Asian Journal of Law and Economics, Vol.1, Issue 1, p.1 (2010).
 
49
Article 3 of the Base Convention.
 
50
Article IV (1) of the Aircraft Protocol.
 
51
Article 50 of the Base Convention.
 
52
Article 1(n) of the Base Convention.
 
53
Article IV (2) of the Aircraft Protocol.
 
54
Article I (3) of the Space Protocol.
 
55
Article XXIX (2) of the Luxembourg Rail Protocol.
 
56
Article I (2) (b), (e) & (l) of the Aircraft Protocol.
 
57
Howard Rosen, Public Service and the Cape Town Convention, The Cape Town Convention Journal, Issue 2, p.131 (2013).
 
58
Article XXV (1) of the Luxembourg Rail Protocol.
 
59
Article XXV (3) of the Luxembourg Rail Protocol.
 
60
Rosen, supra note 70, at p.141 (2013). On the German Law in respect of Measures for the Maintenance of the Operation of Railways Providing Public Transportation (Gesetz über Maßnahmen zur Aufrechterhaltung des Betriebs von Bahnunternehmen des öffentlichen Verkehrs), see Benjamin von Bodungen && Konrad Schott, The Public Service Exemption under the Luxembourg Rail Protocol: a German Perspective, [2007] Uniform Law Review p.573.
 
61
Howard Rosen, The Luxembourg Rail Protocol: a Major Advance for the Railway Industry, [2007] Uniform Law Review p.427, at pp.439–440.
 
62
Article XXVII (1) of the Space Protocol.
 
63
Article XXVII (3) & (9) of the Space Protocol.
 
64
See the duty to “co-operate in good faith with a view to finding a commercially reasonable solution permitting the continuation of the public service” in Article XXVII (7) (a) of the Space Protocol.
 
65
Goode, Official Commentary on Space Protocol, supra note 39, para.5.105.
 
66
Examples are the International Convention for the Unification of Certain Rules of Law Relating to the Bills of Lading, 1924 (the so-called Hague Rules) and the Convention for the Unification of Certain Rules Relating to International Carriage by Air (the Warsaw Convention), 1929.
 
67
Article 5(2) of the Base Convention.
 
68
Though not likely to be relevant in practice, the Cape Town Convention also covers pledges, under which the creditor possesses the secured object. Goode, supra note 29, para 2.37.
 
69
See discussions in Chaps. 10 and 20.
 
70
Article 16(2) of the Base Convention.
 
71
See Chap. 20.
 
72
See Chap. 17.
 
73
Benjamin von Bodungen, Mobiliarsicherungsrechte an Luftfahrzeugen und Eisenbahnrollmaterial im nationalen und internationalen Rechtsverkehr, S.173 ff (Lit Verlag, 2009).
 
74
Recueil officiel du droit fédéral 2009 pp. 5622 et 5628.
 
75
See Chaps. 4 and 6.
 
76
Souichirou Kozuka & Fuki Taniguchi, An Economic Assessment of the Space Protocol to the Cape Town Convention, [2012] Uniform Law Review p.927.
 
77
See Chaps. 10, 16 and 19.
 
78
See Chap. 17.
 
79
Article 2(4) of the Base Convention.
 
80
See Chap. 4.
 
81
See Chap. 3.
 
82
See Chap. 11.
 
83
See Chap. 20.
 
84
See Chap. 3.
 
85
See Chaps. 3, 11 and 15. Canada made a declaration under Article 54 (2) of the Base Convention that the court order is not required for the exercise of remedies when acceding to the Cape Town Convention. As a result, Québec’s Code civil providing for a contrary rule had to be amended.
 
86
See Chap. 18.
 
87
See Chaps. 7, 16 and 19.
 
88
See Chap. 13.
 
89
See Chap. 14.
 
90
See Chap. 10.
 
91
See Chap. 3.
 
92
See Chap. 4.
 
93
See Chap. 16.
 
94
See Chap. 11. However, even in the United States, the right of a lessor is governed by Article 2A of the UCC, not Article 9. See Sect. 2.2.2.
 
95
See Chap. 18.
 
96
See Chap. 13.
 
97
See Chap. 11.
 
98
See Chap. 4.
 
99
See Chap. 16.
 
100
See Chap. 7.
 
101
See Chap. 18.
 
102
See Chaps. 3, 4, 11, 12 and 20.
 
103
See Chap. 9.
 
104
See Chaps. 12, 14, 15, 16, 17 and 20.
 
105
See Chap. 11.
 
106
See Chap. 18.
 
107
See Chap. 3.
 
108
See Chap. 4.
 
109
See Chap. 6.
 
110
In Malaysia, the International Interests in Mobile Equipment (Aircraft) Act 2006 (Act 659), which implements the Convention and Aircraft Protocol in Malaysia, explicitly excludes the application of the debtor-based registration of a charge under subsection 108 (3) of the Companies Act 1965 (Act 125).
 
111
See Chaps. 3, 9 and 11.
 
112
See Chap. 10.
 
113
See Chaps. 16 and 20.
 
114
See Chap. 11.
 
115
See Chap. 12.
 
116
See Chap. 20.
 
117
See Chap. 16.
 
118
See Chap. 15.
 
119
It is possible that the domestic registry remains valid with regard to internal transactions. For this, however, it will be necessary for the Contracting State to make a declaration under Article 50 of the Base Convention. In Malaysia, the Regulations based on the Civil Aviation Act 1969 have not been abolished when it became a Party to the Base Convention and Aircraft Protocol. As Malaysia has not made a declaration to opt in to the exclusion of internal transactions, the usefulness of the retained domestic registry for internal transactions is doubted. See Chap. 6.
 
120
See Chap. 21.
 
121
Maria Buzdugan, Satellite Financing through Hosted Payloads: Benefits and Challenges, Air and Space Law, Vol.36, p.139 (2011).
 
122
Article I (2) (c) of the Aircraft Protocol.
 
123
Article XIV (3) of the Aircraft Protocol.
 
124
Article I (ii) (k) of the Space Protocol.
 
125
Article III (b) of the Space Protocol.
 
126
See Chaps. 12, 16 and 17.
 
127
See Chap. 4. It notes that the “creditor-friendly approach” of English insolvency law was well recognised by rating agencies in enabling the British Airways to place Enhanced Equipment Trust Certificates (EETC) in the US market even before becoming a Party to the Cape Town Convention.
 
128
See Chap. 19.
 
129
11 USC §362.
 
130
See 11 USC §1123 (a)(3).
 
131
See Chap. 17.
 
132
See Chaps. 13 and 20.
 
133
See Chaps. 14 and 16.
 
134
See Chap. 19.
 
135
See Chap. 15.
 
136
Article XXX (3) of the Aircraft Protocol; Article XXVII (3) of the Luxembourg Rail Protocol; Article XLI of the Space Protocol.
 
137
R.S.C., 1985, c. B-3.
 
138
R.S.C., 1985, c. C-36.
 
139
R.S.C., 1985, c. W-11.
 
140
See Chap. 3.
 
141
See Chap. 6.
 
142
See Article 48 of the Base Convention; Article XXVII of the Aircraft Protocol; Article XXII of the Luxembourg Rail Protocol.
 
143
Cf. Article 4 of the Appendix 2 to the ASU.
 
144
For distinction between eliminating the differences and introducing a better law, see Souichirou Kozuka, The Economic Implications of Uniformity in Law, in: Jürgen Basedow & Toshiyuki Kono (eds.), An Economic Analysis of Private International Law, p.73 (Mohr Siebeck, 2006), reprinted in: [2007] Uniform Law Review p.683.
 
145
William L. Cary, Federalism and Corporate Law: Reflections Upon Delaware, Yale Law Journal, Vol.83, p.663 (1974).
 
146
Roberta Romano, The Genius of American Corporate Law (The AEI Press, 1993).
 
147
Henry Hansmann and Reinier Kraakman, The End of History for Corporate Law, Georgetown Law Journal Vol.89, p.439, at p.454 (2001).
 
148
Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer & Robert Vishny, Legal Determinants of External Finance, Journal of Finance, Vol.52, p.1131 (1997); Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer & Robert Vishny, Law and Finance, Journal of Political Economy, Vol.106, p.40 (1998); Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer & Robert Vishny, Investor Protection and Corporate Valuation, Journal of Finance, Vol.42, p.1147 (2002).
 
149
See for example, Holger Spamann, The “Antidirector Rights Index” Revisited, Review of Financial Studies, Vol.23, p.467 (2010).
 
150
Saunders, Srinivasan, Walter & Wool, supra note 53.
 
151
See Chaps. 13 and 19.
 
152
See Chap. 16.
 
153
See Souichirou Kozuka, The Bifurcated World of Uniform Law: uniform law of “islands” and of “the ocean”, in: Eppur si mouve: The age of Uniform Law (2016).
 
154
Ludwig Weber, Public and private features of the Cape Town Convention, The Cape Town Convention Journal, Vol.4, p.53 (2015).
 
155
Rob Cowan and Donal Gallagher, The International Registry for Aircraft Equipment – The First Seven Years, What We Have Learned, Uniform Commercial Code Law Journal, Vol.45, p.225 (2014).
 
156
William B. Piels & Tan Siew Huay, Generation II Of The International Registry Website – The Closing Room: A Transactional Approach to Registries, The Cape Town Convention Journal, Issue 2, p.165 (2013); Cowan and Gallagher, supra note 168, p.243.
 
157
By borrowing the example in Cowan and Gallagher, supra note 168, if an aircraft is sold, financed by a senior lender and a junior lender, and leased to an airline, there will be five parties (seller, buyer (lessor), bank 1, bank 2, airline (lessee)) and five registrations to be made (sale, loan 1, loan 2, lease and assignment of lease).
 
158
Piels and Tan, supra note 169, p.175; Cowan and Gallagher, supra note 168, p.243.
 
159
See Chap. 11.
 
160
Article 17 (2) (d) of the Base Convention. See also Article XVIII of the Aircraft Protocol and Article XXIX of the Space Protocol.
 
161
Article XVII (1) of the Aircraft Protocol and the Resolution No.2 of the Diplomatic Conference.
 
162
Article XII (1) of the Luxembourg Rail Protocol. OTIF serves as its secretariat (Article XII (6) of the Luxembourg Rail Protocol).
 
163
Article XXVIII (1) of the Space Protocol; Resolution No.1.
 
164
Article XVII (4) of the Aircraft Protocol; Article XII (5) of the Luxembourg Rail Protocol; Article XXVIII (3) of the Space Protocol.
 
165
The most updated version is of 1 February 2016, TAD/PG(2016)1 (hereinafter “ASU 2016”).
 
166
ASU 2016, Article 1.a).
 
167
Articles 37 and 38 of the Appendix II to the ASU 2016.
 
168
Article 39 of the Appendix II to the ASU 2016.
 
169
Annex 1 of the Appendix II to the ASU 2016. For (e), the time period shall be not more than ten calendar days for (i) preservation of the aircraft objects and their value, (ii) possession, control or custody of the aircraft objects, and (iii) immobilisation of the aircraft objects, and not more 30 calendar days for (iv) lease or management of the aircraft objects and the income thereof and (v) sale and application of proceeds from the aircraft equipment.
 
170
See Chaps. 5, 6 and 8.
 
172
Article 44 of the Appendix II to the ASU 2016.
 
173
Charles W. Mooney, Jr., The Cape Town Convention’s Improbable-but-Possible Progeny Part Two: Bilateral Investment Treaty-Like Enforcement Mechanism, Virginia Journal of International Law, Vol.55, p.451 (2015).
 
174
Gerard McCormack, Secured Credit and the Harmonisation of Law: The UNCITRAL Experience, p.17 (Edward Elgar, 2011).
 
175
European Bank for Reconstruction and Development, Model Law on Secured Transactions, 1994; Organization for American States, Model Inter-American Law on Secured Transactions, 2002.
 
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Metadaten
Titel
The Cape Town Convention and Its Implementation in Domestic Law: Between Tradition and Innovation
verfasst von
Souichirou Kozuka
Copyright-Jahr
2017
DOI
https://doi.org/10.1007/978-3-319-46470-1_2