Cape Town Treaty
Encyclopedia
The Cape Town 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, together usually referred to as the Cape Town Treaty, is an international treaty
intended to standardize transactions involving movable property, particularly aircraft
and aircraft engines.
The treaty creates international standard
s for registration of ownership, security interest
s (lien
s), leases
and conditional sales contracts, and various legal remedies for default
in financing agreements, including repossession and the effect of particular states' bankruptcy
laws.
The treaty's Protocol applies to aircraft which can carry at least 8 people or 2750 kilograms of cargo, aircraft engines with thrust exceeding 1750 pound-forces (7,784.4 N) or 550 hp, and helicopters carrying 5 or more passengers.
The treaty resulted from a diplomatic conference held in Cape Town
, South Africa
in 2001. The conference was attended by 68 countries and 14 international organizations. 53 countries signed the resolution proposing the treaty
. The Convention portion of the treaty came into force on April 1, 2004
, and has been signed by 28 countries. The Protocol (which applies specifically to aircraft and aircraft engines ) took effect on March 1, 2006 when it was ratified by 8 countries: Ethiopia
, Ireland
, Malaysia, Nigeria
, Oman
, Panama
, Pakistan
, and the United States
.
In the United States, the treaty was approved by the U.S. Senate in 2003, and implemented by the full Congress in the Cape Town Treaty Implementation Act of 2004.
The International Registry of Mobile Assets established to record international property interests in the equipment covered by the treaty is located in Ireland. Mediation cases for leasing disputes are to be heard in the High Court of Ireland.
Treaty
A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations. A treaty may also be known as an agreement, protocol, covenant, convention or exchange of letters, among other terms...
intended to standardize transactions involving movable property, particularly aircraft
Aircraft
An aircraft is a vehicle that is able to fly by gaining support from the air, or, in general, the atmosphere of a planet. An aircraft counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines.Although...
and aircraft engines.
The treaty creates international standard
International standard
International standards are standards developed by international standards organizations. International standards are available for consideration and use, worldwide...
s for registration of ownership, security interest
Security interest
A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain preferential rights in the disposition of secured assets...
s (lien
Lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation...
s), leases
Finance lease
A finance lease or capital lease is a type of lease. It is a commercial arrangement where:* the lessee will select an asset ;* the lessor will purchase that asset;...
and conditional sales contracts, and various legal remedies for default
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
in financing agreements, including repossession and the effect of particular states' bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
laws.
The treaty's Protocol applies to aircraft which can carry at least 8 people or 2750 kilograms of cargo, aircraft engines with thrust exceeding 1750 pound-forces (7,784.4 N) or 550 hp, and helicopters carrying 5 or more passengers.
The treaty resulted from a diplomatic conference held in Cape Town
Cape Town
Cape Town is the second-most populous city in South Africa, and the provincial capital and primate city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. It forms part of the City of Cape Town metropolitan municipality...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
in 2001. The conference was attended by 68 countries and 14 international organizations. 53 countries signed the resolution proposing the treaty
. The Convention portion of the treaty came into force on April 1, 2004
, and has been signed by 28 countries. The Protocol (which applies specifically to aircraft and aircraft engines ) took effect on March 1, 2006 when it was ratified by 8 countries: Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, Malaysia, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
In the United States, the treaty was approved by the U.S. Senate in 2003, and implemented by the full Congress in the Cape Town Treaty Implementation Act of 2004.
The International Registry of Mobile Assets established to record international property interests in the equipment covered by the treaty is located in Ireland. Mediation cases for leasing disputes are to be heard in the High Court of Ireland.