Aicraft Title & Registrations
15. Does an aircraft mortgage duly registered in the national registry of this location extend to engines and other parts of such aircraft (either installed or not on the airframe)?
Austria
Such registrations are not possible in Austria. Furthermore, please note that there is no specific engine registry in Austria.
Colombia
According to article 1904 of the Colombian Commercial Code, the mortgage and transfer of ownership must be in a public deed and comprise all the specifications required for registration in the Aeronautical National Registry. Liens shall come in a judicial decision, and the rest of the interests or rights can be in a private document, which is generally a contract.
As previously discussed in question 4, according to 20.7.9 of the Colombian Aeronautical Regulations (RAC), the registration procedure for any document, title, or act consists of four stages: initial filing, assessment, registration, and proof of registration.
Finally, the cost of registration depends on the aircraft maximum gross weight according to article one of Resolution 4338 of 2019 issued by Colombian CAA.
Germany
The engines are not specifically mentioned in the register; however, the German aircraft mortgage actually extends to the engines and other parts (provided they are also owned by the airframe owner).
India
DGCA is the only aircraft registry in India, and there is no separate registry for leases and aircraft engines maintained in India. Typically, engines are not considered distinct from the aircraft. The hypothecation agreement would specify whether the security interest extends to the engines. If the aircraft is owned by an Indian entity, the security created over the aircraft by way of hypothecation is required to be registered with the relevant Registrar of Companies within 30 days from the date of creation of the charge.
Israel
It could be extended to engines as well as other parts, as long as the document creating the mortgage includes such parts specifically and, accordingly, also the mortgage registered with the Israeli Registrar of Companies or, as applicable, the Israeli Registrar of Pledges specifies such pledges.
Kenya
Kenya does not have a separate register of mortgages or rights over aircraft and does not maintain a specific register over parts of an aircraft.
Malta
The ARA states that where an engine has been attached to an airframe which is not also owned by the airframe owner, each of the owners shall retain the ownership of the thing and the engine shall not accede to the airframe. Article 26 (4) of the ARA states that any security over the aircraft shall not extend to any engine attached to the airframe when such engine does not belong to the owner of the airframe who has granted the security, notwithstanding that the engines may be specifically referred to in the instrument of mortgage, the National Aircraft Register or elsewhere.
Furthermore, an aircraft shall comprise of any engines owned by the owner of the aircraft whether attached to the aircraft or not, as well as any replacement engines which are designated for use on the aircraft and owned by the owner of the aircraft but temporarily not attached to the aircraft.
Mexico
In principle, mortgages extend to engines and other parts of the aircraft (accesorium sequitur principale); however, specific securities (i.e., pledges) over engines and/or other parts of the aircraft can also be recorded in Mexico.
Norway
Section 3-23 of the Civil Aviation Act states that the person with right of ownership to the aircraft is also entitled to “engines, propellers, equipment, instruments and other things that belong to the aircraft when the register does not appoint another person as entitled to these.” Furthermore, when a “right includes an aircraft with engines and other things mentioned in the second paragraph, the right to these things does not fall away if things are temporarily separated from the aircraft.”
In the preparatory works (NOU 1991:18), it is assumed that this section rests on the principle that the aircraft and the other parts belonging to the aircraft constitute a “technical and economically operational entity” which one should initially be able to assume as one.
Example: If the mortgage applies to the aircraft in its entirety, and there are no other registered owners of the engine, the mortgage will apply to the aircraft and the engine.
Pakistan
There are no provisions in the law of Pakistan which would require an aircraft mortgage or any other security in an aircraft to be perfected in Pakistan by entry in any domestic register (either with the PCAA or any other government entity) unless the aircraft is owned by a company incorporated in Pakistan. However, Pakistan has implemented the Cape Town Convention by way of the Cape Town Convention and Aircraft Protocol (Implementation) Rules, 2004 (the “Implementation Rules), of which Rule 3 recognizes ‘aircraft objects (airframes, aircraft engines and helicopters) as an international interest and capable of being registered in the International Registry pursuant to the Cape Town Convention. As the Implementation Rules, 2004 are a part of local law, such interests can be enforced locally.
Panama
Generally, a mortgage on an aircraft will cover its accessories and improvements, such as parts and engines incorporated therein, whether they are present or future accessories and improvements. In addition, engines and other parts capable of individualisation and determination and able to be sufficiently described, could also be mortgaged separately from the aircraft.
Peru
The formalities are the same as listed in questions three and four. The fees are the same as listed in the response to question five.
Philippines
Yes. As mentioned in the previous questions, the CAAP is mandated to maintain a system for the registration of liens, mortgages, or other interests in aircraft or aircraft engines. CAAP Law provides that CAAP shall establish a national system for recording documents that affect title to or any interest in any aircraft registered and in any aircraft engine propeller, appliance, or spare parts intended for use on any such aircraft.
Poland
The legal status of aircraft engines is very contentious and ultimately unresolved in case law. Out of prudence, we normally advise our clients to obtain separate securities for the engines.
Portugal
Engines can be either registered as part of an aircraft or subject to a separate registry entry as autonomous equipment. Registered mortgages shall extend to the engines unless said engines are subject to a separate registry entry.
Romania
The Civil Aeronautical Code provides that a mortgage may be constituted on the aircraft or on its components (e.g., the engines).
Furthermore, the Romanian Registration Regulation provides that the mortgage title must contain provisions regarding the engines, equipment, subassemblies, spare parts etc. Thus, in the absence of such provisions, an aircraft mortgage is not presumed to include these components too.
Serbia
Yes, an aircraft mortgage duly registered in the Registry extends to engines and other parts of such aircraft provided that the mortgagor is entered in the register as the owner of engines and all parts of aircraft.
Slovenia
Yes, a mortgage extends to all parts of the aircraft provided that the mortgagor is entered in the register as the owner of engines and all parts of aircraft.
South Africa
Aircraft mortgages duly registered with the SACAA extend to engines and parts for so long as the same are contained in the deed of mortgage.
Sweden
Yes, a lien encompasses the accessories even though not installed on the aircraft at the time of registration in the Rights registry.
Switzerland
Aircraft engines may (along with the aircraft) be registered in the Swiss Aircraft Record. If so registered, they form part of the aircraft irrespective of whether they are on or off the aircraft. A mortgage on the aircraft extends to them. A mortgage may, subject an inventory and further conditions, be extended to spare parts.
The Bahamas
Please note our response to question12 above. Should an aircraft mortgage be registered in the local general Registry of Records, the security provided thereby will extend to such property specifically referred to in the security document.
USA – Miami
The following liens or rights could have priority over a security interest created under an aircraft security agreement:
- U.S. federal tax liens, which are filed with the relevant state and cannot be filed with the FAA Registry or registered with the International Registry;
- The right of U.S. Customs to seize aircraft for transporting drugs (except for airlines involved in common carriage);
- possessory mechanics and warehouse liens to the extent provided under applicable state law;
- non-possessory mechanics liens to the extent provided under applicable state law, although these may be subordinate to any perfected security interest and may need to be filed for recordation with the FAA Registry;
- purchase money security interests, which may be filed up to 20 days after the grantor receives possession and will take priority over any intervening security interests; and
- buyers purchasing goods in the ordinary course from persons in the business of selling that type of goods.
USA – Oklahoma City
A mortgage, lease, or other security instrument covering aircraft engines and propellers of sufficient size/power is recorded separately against the airframe, each engine, and each propeller. This is true regardless of whether the engine or propeller is currently installed on the relevant airframe. Additionally, parties may record a mortgage or other security instrument against any aircraft engine, propeller, or appliance maintained by or for an air carrier certificated under 49 U.S.C. 44705, for installation or use in an aircraft, aircraft engine, or propeller, or any spare part, maintained at a designated location or locations by or for such an air carrier.
Aircraft engines capable of producing 550 or more rated take-off horsepower, or the equivalent of that horsepower, are eligible for recording with the FAA. Propellers capable of absorbing 750 or more rated take-off shaft horsepower are eligible for recording with the FAA. The instrument must specifically describe the engine or propeller (including the manufacturer, model, and serial number) and indicate whether its horsepower or thrust rating meets the minimum threshold.
Please note that the FAA does not maintain registration or ownership records for engines or propellers.