The Cape Town Convention on International Interests in Mobile Equipment, or Cape Town Treaty is an international treaty intended to standardize transactions involving movable property. The treaty creates international standards for registration of contracts of sale (including dedicated registration agencies), security interests (liens), leases and conditional sales contracts, and various legal remedies for default in financing agreements, including repossession and the effect of particular states' bankruptcy laws.
Three protocols to the convention are specific to three types of movable equipment: Aircraft Equipment (aircraft and aircraft engines; signed in 2001), railway rolling stock (signed in 2007) and space assets (signed in 2012).
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 treaty came into force on 1 April 2004 , and has been ratified by 57 parties. The Aircraft Protocol (which applies specifically to aircraft and aircraft engines ) took effect on 1 March 2006 when it was ratified by 8 countries: Ethiopia, Ireland, Malaysia, Nigeria, Oman, Panama, Pakistan, and the United States.
Video Cape Town Treaty
Signatures and ratifications
As of July 2015, the convention has been ratified by 64 states as well as the European Union. The railway rolling stock and the space protocols have been ratified by respectively two countries (Luxembourg and Gabon), as well as the European Union, and no countries and thus have not taken effect. An overview of the status of the treaty and protocols is shown below:
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.
European Union
The European Union joined the convention and the Aircraft Protocol as a Regional Economic Integration Organization. On the subject of the convention, both the Member states of the European Union and the Union itself have competence: e.g. while the substantive law regarding insolvency is regulated by the states, the conflict of law-rules (which county has jurisdiction etc.) is regulated by the European Union. According to the Government of the Netherlands the acceptance of the European Union in a member state which itself is not a party to the convention has no practical consequences. The European Union ratified the Luxembourg Rail protocol in December 2014 as a Regional Economic Integration Organization on the same basis.
Maps Cape Town Treaty
Protocols
Aircraft Protocol
The aircraft Protocol (officially: Protocol to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment) was signed immediately with the treaty and the only protocol currently entered into force. It applies to aircraft which can carry at least eight people or 2750 kilograms of cargo, aircraft engines with thrust exceeding 1,750 pounds-force (7,800 N) or 550 horsepower (410 kW), and helicopters carrying five or more passengers. The International Registry of Mobile Assets established to record international property interests in the aircraft equipment covered by the treaty is located in Ireland. Mediation cases for leasing disputes are to be heard in the High Court of Ireland. As of April 2016, the protocol has 65 contracting parties, which includes 64 states and the European Union.
Railway Rolling Stock
The Railway Rolling Stock Protocol, or Luxembourg Rail Protocol, officially the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock was adopted on 23 February 2007 at a diplomatic conference in Luxembourg and applies to railway rolling stock (broadly defined as "vehicles movable on a fixed railway track or directly on, above or below a guideway").
The protocol establishes an international registry located in Luxembourg at which all international interests under the protocol will be registrable. The registry will also issue unique identifiers for rolling stock on request. Regulis S.A., a subsidiary of SITA, was appointed in November 2014 to act as Registrar. The protocol requires ratification by 4 countries, together with a certification by the secretariat to the Supervisory Authority that the registry is fully operational, in order to enter into force. Currently it has been signed by France, Gabon, Germany, Italy, Luxembourg, Mozambique, Switzerland, Sweden, the UK as well as the European Union, while it has been ratified by the European Union and 2 states: Luxembourg and Gabon.
Space Assets
The Space Assets protocol, or Berlin Space Protocol (officially Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Space Assets) was concluded on 9 March 2012 and requires 10 ratifications before entry into force (in the original protocol this number was 4). The protocol applies to objects functioning in space like satellites or satellite parts. The convention was strongly opposed by the satellite industry, claiming that it would lead to increased bureaucracy and "make the financing of new satellite projects more difficult and expensive".
References
External links
- treaty and protocols at the Depositary website
- Treaty text and ratifications
- Aircraft protocol text and ratifications
- Railway rolling stock protocol text and ratifications
- Space Assets protocol text, draft final provisions and signatures
- Aircraft Protocol
- International Registry of Mobile Assets
- Federal Aviation Administration - The Cape Town Treaty
- Benefits for airlines under the Cape Town Convention
- Luxembourg Rail Protocol
- Rail Working Group
Source of the article : Wikipedia
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