(1) This Act may be cited as the International Interests in Mobile Equipment (Aircraft) Act 2006.
(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.
Application of the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment
Act 659
International Interests in Mobile Equipment (Aircraft) Act 2006
Akta kepentingan antarabangsa mengenai kelengkapan bergerak (pesawat udara) 2006
An Act to implement the Convention on the International Interests in Mobile Equipment, and the Protocol to that Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, and to provide for matters connected therewith.
Data synced
Text as at 1 November 2012 (LOM reprint); amendments made after that date may not be incorporated.
(1) Subject to subsection (2), the Convention on International Interests in Mobile Equipment as set out in the First Schedule and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment as set out in the Second Schedule shall have the force of law in Malaysia and for that purpose be construed in accordance with the provisions of this Act.
(2) Notwithstanding Article 2 of the Convention on International Interests in Mobile Equipment, this Act shall apply in respect of aircraft objects only.
In this Act, unless the context otherwise requires—
“this Act” includes any subsidiary legislation made under this Act;
“Cape Town Convention” means the Convention on International Interests in Mobile Equipment;
“Minister” means the Minister charged with the responsibility for civil aviation;
“aircraft object” means any airframe, aircraft engine and helicopter as defined under Article I(2) of the Aircraft Protocol;
“Aircraft Protocol” means the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment.
Pursuant to Article 53 of the Cape Town Convention, all courts with competent jurisdiction shall be the relevant courts for the purposes of Article 1 and Chapter XII of that Convention.
The Minister may make such regulations as may be expedient or necessary for the better carrying out of the provisions of this Act, to provide generally for regulating and carrying out the Cape Town Convention and the Aircraft Protocol and any amendments of such Convention and Protocol.
(1) Subsection 108(3) of the Companies Act 1965 [Act 125] shall not apply to a charge on any aircraft objects falling within the scope of the Cape Town Convention and the Aircraft Protocol.
(2) Subsection 4(3) of the Civil Law Act 1956 [Act 67] shall not apply to any assignment falling within the scope of the Cape Town Convention and the Aircraft Protocol.
(1) Subject to section 6, the provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other written law relating to the financing and leasing of aircraft object, creation of international interests in aircraft object and their registration thereof.
(2) Notwithstanding subsection (1), to the extent of any conflict or inconsistency between the provisions of this Act and those of any other written law relating to matters governed by the Cape Town Convention and the Aircraft Protocol, the provisions of this Act shall prevail and the conflicting or inconsistent provisions of such other written law shall, to the extent of the conflict or inconsistency, be deemed to be superseded.
First Schedule [Subsection 2(1)]
CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT
THE STATES PARTIES TO THIS CONVENTION,
AWARE of the need to acquire and use mobile equipment of high value or particular economic significance and to facilitate the financing of the acquisition and use of such equipment in an efficient manner,
RECOGNISING the advantages of asset-based financing and leasing for this purpose and desiring to facilitate these types of transaction by establishing clear rules to govern them,
MINDFUL of the need to ensure that interests in such equipment are recognised and protected universally,
DESIRING to provide broad and mutual economic benefits for all interested parties,
BELIEVING that such rules must reflect the principles underlying asset-based financing and leasing and promote the autonomy of the parties necessary in these transactions,
CONSCIOUS of the need to establish a legal framework for international interests in such equipment and for that purpose to create an international registration system for their protection,
TAKING INTO CONSIDERATION the objectives and principles enunciated in existing Conventions relating to such equipment,
HAVE AGREED upon the following provisions:
Chapter II — Default remedies, priorities and assignments
With regard to the remedies in Article IX(1):
(a) they shall be made available by the registry authority and the administrative authorities in a Contracting State, as applicable, no later than five working days after the date on which the creditor notifies such authorities that it is entitled to procure those remedies in accordance with the Convention; and
(b) the applicable authorities shall expeditiously co-operate with and assist the creditor in the exercise of such remedies in conformity with the applicable aviation safety laws and regulations.
No exercise of remedies permitted by the Convention or this Protocol may be prevented or delayed after the date specified in paragraph 2.
No obligations of the debtor under the agreement may be modified without the consent of the creditor.
Nothing in the preceding paragraph shall be construed to affect the authority, if any, of the insolvency administrator under the applicable law to terminate the agreement.
No rights or interests, except for non-consensual rights or interests of a category covered by a declaration pursuant to Article 39(1), shall have priority in insolvency proceedings over registered interests.
The Convention as modified by Article IX of this Protocol shall apply to the exercise of any remedies under this Article.
Alternative B
2. Upon the occurrence of an insolvency-related event, the insolvency administrator or the debtor, as applicable, upon the request of the creditor, shall give notice to the creditor within the time specified in a declaration of a Contracting State pursuant to Article XXX(3) whether it will:
(a) cure all defaults other than a default constituted by the opening of insolvency proceedings and agree to perform all future obligations, under the agreement and related transaction documents; or
(b) give the creditor the opportunity to take possession of the aircraft object, in accordance with the applicable law.
3. The applicable law referred to in subparagraph (b) of the preceding paragraph may permit the court to require the taking of any additional step or the provision of any additional guarantee.
4. The creditor shall provide evidence of its claims and proof that its international interest has been registered.
5. If the insolvency administrator or the debtor, as applicable, does not give notice in conformity with paragraph 2, or when the insolvency administrator or the debtor has declared that it will give the creditor the opportunity to take possession of the aircraft object but fails to do so, the court may permit the
creditor to take possession of the aircraft object upon such terms as the court may order and may require the taking of any additional step or the provision of any additional guarantee.
6. The aircraft object shall not be sold pending a decision by a court regarding the claim and the international interest.
Article XII — Insolvency assistance
1. This Article applies only where a Contracting State has made a declaration pursuant to Article XXX(1).
2. The courts of a Contracting State in which an aircraft object is situated shall, in accordance with the law of the Contracting State, co-operate to the maximum extent possible with foreign courts and foreign insolvency administrators in carrying out the provisions of Article XI.
Article XIII — De-registration and export request authorisation
1. This Article applies only where a Contracting State has made a declaration pursuant to Article XXX(1).
2. Where the debtor has issued an irrevocable de-registration and export request authorisation substantially in the form annexed to this Protocol and has submitted such authorisation for recordation to the registry authority, that authorisation shall be so recorded.
3. The person in whose favour the authorisation has been issued (the “authorised party”) or its certified designee shall be the sole person entitled to exercise the remedies specified in Article IX(1) and may do so only in accordance with the authorisation and applicable aviation safety laws and regulations. Such authorisation may not be revoked by the debtor without the consent in writing of the authorised party. The registry authority shall remove an authorisation from the registry at the request of the authorised party.
4. The registry authority and other administrative authorities in Contracting States shall expeditiously co-operate with and assist the authorised party in the exercise of the remedies specified in Article IX.
Article XIV — Modification of priority provisions
1. A buyer of an aircraft object under a registered sale acquires its interest in that object free from an interest subsequently registered and from an unregistered interest, even if the buyer has actual knowledge of the unregistered interest.
2. A buyer of an aircraft object acquires its interest in that object subject to an interest registered at the time of its acquisition.
3. Ownership of or another right or interest in an aircraft engine shall not be affected by its installation on or removal from an aircraft.
4. Article 29(7) of the Convention applies to an item, other than an object, installed on an airframe, aircraft engine or helicopter.
Article XV — Modification of assignment provisions
Article 33(1) of the Convention applies as if the following were added immediately after subparagraph (b):
“and (c) the debtor has consented in writing, whether or not the consent is given in advance of the assignment or identifies the assignee.”
Article XVI — Debtor provisions
1. In the absence of a default within the meaning of Article 11 of the Convention, the debtor shall be entitled to the quiet possession and use of the object in accordance with the agreement as against:
(a) its creditor and the holder of any interest from which the debtor takes free pursuant to Article 29(4) of the Convention or, in the capacity of buyer, Article XIV(1) of this Protocol, unless and to the extent that the debtor has otherwise agreed; and
(b) the holder of any interest to which the debtor’s right or interest is subject pursuant to Article 29(4) of the Convention or, in the capacity of buyer, Article XIV(2) of this Protocol, but only to the extent, if any, that such holder has agreed.
2. Nothing in the Convention or this Protocol affects the liability of a creditor for any breach of the agreement under the applicable law in so far as that agreement relates to an aircraft object.
Cite this legislation
- Official citation
- Act 659
- Source
- lom.agc.gov.my
- Data synced
- Licence
- Official text, free to reproduce (Copyright Act 1987 [Act 332] s 3) ↗
International Interests in Mobile Equipment (Aircraft) Act 2006 [Act 659] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-659
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).