While the CTC (defined below) has had the force of law in the majority of Canada since 2013, on July 1, 2016, the CTC will be in force across Canada.
After much anticipation, the 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 (collectively, the CTC) became law in Canada on April 1, 2013. Canada is a federal state consisting of a central federal government and 13 provincial and territorial governments. Under Canada’s constitution, international and interprovincial transportation, aeronautics and bankruptcy and insolvency matters fall within federal jurisdiction, while property and civil rights matters remain the responsibility of the provinces. Given that the subject matter of the CTC straddles both provincial and federal jurisdictions, it was necessary for the CTC to be implemented by the federal government and by each province and territory. Given the various levels of government involved, the implementation of the CTC in Canada took a somewhat staggered approach.
Canada deposited its ratification instruments for the CTC, including declarations incorporating all Organisation for Economic Co-operation and Development (OECD) and Aircraft Sector Understandings (ASU) qualifying declarations, with UNIDROIT in December 2012 in respect of each province and territory except Prince Edward Island, Yukon and New Brunswick. Accordingly, the CTC has become federal law in Canada and has become provincial law in Ontario, Quebec, Alberta, Saskatchewan, Nova Scotia, British Columbia, Newfoundland and Labrador, Manitoba, the Northwest Territories and Nunavut as of April 1, 2013 (except that it has had the force of law in Newfoundland and Labrador since May 3, 2013). Canada deposited supplemental declarations in respect of Yukon and Prince Edward Island on March 28, 2014, and in accordance with Article 57(2) of the CTC, it took effect on October 1, 2014. On December 23, 2015, the federal government again submitted subsequent declarations to UNIDROIT in respect of New Brunswick. These declarations will take effect on July 1, 2016. As such, appropriately, on Canada Day, 2016, the CTC will have the force of law in all jurisdictions in Canada.