Avionics News October 2019 - 72

AN OVERVIEW OF THE CAPE TOWN CONVENTION
Continued from page 71

registration and annual renewal are required.
Some aircraft buyers believe perfecting an asset in the
International Registry is unnecessary if the aircraft will only
conduct domestic flights. However, Kali Hague, attorney
at the Washington, D.C.-based law firm Jetlaw, said all
aircraft buyers benefit from perfecting their assets on the
International Registry.
"Consider a scenario in which the aircraft is previously
owned and was based outside the United States," Hague
explained. "If the prior owner was not diligent in paying
bills and you do not perfect the asset in the Registry
upon purchase, you might later find a lien filed in the
International Registry against your aircraft based on the
previous owner's debts."
The International Registry also acts as a form of
redundancy. For example, if data in the FAA Registry is
incorrect for any reason, the International Registry may
provide sufficient information to protect the rightful owner's
interests in the asset.

Hague also explained as more countries sign on to the
Cape Town Treaty, more interests are protected, so the
International Registry has grown in popularity.
Often, escrow agents act as the administrator for the
transacting entity, or buyer, and complete the International
Registry on their behalf.
The International Registry allows both registered users
and guests to conduct searches of registered assets and
contracting states. Search functions were recently modified
to improve format of search results. This has proven
helpful as time passes and more registrations are listed on
individual assets.
The International Registry is a cost-based, nonprofit
system. Users pay a fee for each asset registration, and
those fees may be adjusted if costs of administering the
Registry fluctuate. The International Registry resides and is
managed in Ireland, so legal disputes are typically resolved
in accordance with the laws of Ireland.
If your business is involved in aircraft sales transactions,
it's helpful to have some background on the International
Registry, but you should always contact legal counsel to
ensure your assets are protected. q

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Avionics News October 2019

Table of Contents for the Digital Edition of Avionics News October 2019

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