On December 21, 2012, the Canadian government completed the process to ratify and adopt the Convention on International Interests in Mobile Equipment (the “Convention”) and the Protocol to he Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the “Protocol” and together with the Convention, the “Cape Town Convention”) by depositing an instrument of ratification with the International Institute for the Unification of Private Law (UNIDROIT). The Cape Town Convention establishes a uniform international legal framework among “contracting states” to facilitate cross-border, asset-based financing and leasing of aircraft equipment by providing secured creditors with significant protections to their security interests in aircraft equipment. In announcing the government’s completion of the final steps towards ratification, the Honorable Denis Lebel, Minister of Transport, Infrastructure and Communities and Minister of the Economic Development Agency of Canada for the Regions of Quebec, noted that the “Convention and Protocol [would] help to strengthen the [Canadian] airline and aerospace industries through an international legal framework for the financing of their aircraft equipment.” Air Canada, Canada’s largest domestic and international airline, applauded the Canadian government’s decision to finally adopt the Cape Town Convention. In anticipation of the completion of the final steps towards ratification of the Cape Town Convention, Michael Rousseau, Air Canada’s Executive Vice President and Chief Financial Officer, stated that “with ratification, Canada would join the growing ranks of countries benefiting from this important international agreement that will provide Canada’s airlines with access to more competitive aircraft financing and leasing terms on international finance markets, for the benefit of Canada’s airlines and all stakeholders.” Canada elected to adopt Article XI, Alternative A of the Protocol (“Alternative A”) in its entirety to all types of insolvency proceedings and all insolvency-related events, and, like most “contracting states,” declared that the waiting period for the purposes of Article XI(3) of Alternative A to be sixty (60) calendar days. The Cape Town Convention will enter into force in Canada on April 1, 2013. More than 50 countries and regions around the world have already adopted the Cape Town Convention, including the U.S., China and several European countries. A complete list of “contracting states” can be found at http://www.unidroit.org/english/implement/i-2001-aircraftprotocol.pdf.
Register now for your free, tailored, daily legal newsfeed service.
Questions? Please contact firstname.lastname@example.orgRegister
Cape Town to enter into force in Canada on April 1, 2013
Canada January 31 2013
Popular articles from this firm
If you would like to learn how Lexology can drive your content marketing strategy forward, please email email@example.com.
Related topic hubs
Senior Corporate Counsel
Senior Corporate Counsel
What our clients say
"I am a big fan. The information is very useful indeed."