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To which major air law treaties is your state a party? Is your state a party to the New York Convention of 1958?
Israel ratified the Chicago Convention (1944) in 1949 and the New York Convention (1958) in 1959. However, Israel is not party to the Geneva Convention (1948) or the Cape Town Convention (2001). Israel did sign the Rome Convention (1933), but to this date has not ratified it.
What is the principal domestic legislation applicable to aviation finance and leasing?
The principal domestic legislation governing aviation finance and leasing in Israel is the Aviation Law, 2011 and the Aviation Regulations (Registration and Marking of Aircraft), 1973 (the Registration Regulations). Additional laws governing this subject are the following:
- the Companies Ordinance, 1983;
- the Pledges Law, 1967;
- the Contracts Law (General Part), 1973 (the Contracts Law);
- the Contracts Law (Remedies for Breach of Contract), 1970; and
- the Rental and Borrowing Law, 1971.
It should be noted that as of March 2018 a new Insolvency and Financial Rehabilitation Law, 2018 (the Insolvency Law) was legislated which made substantial changes to numerous matters relating to insolvency issues including inter alia creditor rights and company liquidation proceedings. The Insolvency Law is expected to come into effect in September 2019 and has not been addressed herein.
Are there any restrictions on choice-of-law clauses in contracts to the transfer of interests in or creation of security over aircraft? If parties are not free to specify the applicable law, is the law of the place where the aircraft is located or where it is registered the relevant applicable law?
Israeli legislation does not categorically restrict parties from choosing the proper law by which their contract shall be governed. Thus, a foreign choice of law should be upheld if it is not immoral, illegal or against public policy, in accordance with section 30 of the Contracts Law. In such case, the relevant foreign law needs to be proven to the court by an expert witness in the relevant law.
Transfer of aircraft
How is title in an aircraft transferred?
Title in aircraft is customarily transferred by a bill of sale.
Transfer document requirements
What are the formalities for creating an enforceable transfer document for an aircraft?
Although there is a form of bill of sale attached to the Registration Regulations, the Israeli Registrar of Aircraft (the Registrar) would normally accept any form of a bill of sale (or other document), solely in its original copy, that clearly demonstrates transfer of ownership of the aircraft. If the bill of sale is in a language other than Hebrew or English, the Registrar may require a notarised translation into Hebrew or English. There are certain registration fees for payment and forms for completion, which may also be required.
Registration of aircraft ownership and lease interests
Identify and describe the aircraft registry.
The Israeli Aircraft Registry (the Registry) is an owner registry established pursuant to the Registration Regulations maintained by and operated by the Civil Aviation Authority, a statutory authority within the Ministry of Transport and Road Safety. To our knowledge, there are no currently effective 83-bis arrangements in place. Israel does not maintain a specific engine register.
Registrability of ownership of aircraft and lease interests
Can an ownership or lease interest in, or lease agreement over, aircraft be registered with the aircraft registry? Are there limitations on who can be recorded as owner? Can an ownership interest be registered with any other registry? Can owners’, operators’ and lessees’ interests in aircraft engines be registered?
As the Registry is an owner registry, an ownership interest in an aircraft may be registered. A lease interest in an aircraft may not be recorded in the Registry. Eligibility for registration of an aircraft in the Registry is limited to citizens and permanent residents of Israel, or Israeli corporations of which two-thirds of its directors are Israeli citizens or permanent residents. Notwithstanding the aforesaid, the Minister of Transport and Road Safety may permit the registration of a foreign-owned aircraft not registered in a foreign state if the Minister is convinced that there exists a sufficient link between the aircraft and Israel. Furthermore, said Minister is authorised to refuse the registration of an aircraft in the Registry if he or she is convinced that the registration may harm the security of Israel or its foreign affairs. Israel does not maintain any other registry for registration of ownership interests in aircraft nor does it maintain a specific engine register.
Registration of ownership interests
Summarise the process to register an ownership interest.
In order to register an aircraft, an owner must submit an original aircraft registration application form in the form prescribed by the Registrar signed by the owner with the following attachments:
- if the application is made by a corporation, corporate authorisation from the relevant organ of the relevant corporation duly empowering the individual(s) executing the application to do so, approved and certified by such corporation’s authorised signatory for such purpose. In case of an Israeli corporation the applicant must also submit sufficient proof of such corporation’s registration with the Israeli Companies’ Registrar;
- if the application is executed by an agent or representative of the owner of the aircraft, the application shall expressly state the name of the owner and include details of the agent or representative and state that he or she is acting in such capacity, enclosing a notarised power of attorney from the owner (or a certified copy thereof) presented not later than three years from its issuance, unless it expressly provides that it shall be in effect for more than three years. If the power of attorney is executed outside of Israel it may be attested by an Israeli diplomatic or consular representative or by a public notary in compliance with the Registrar’s requirements;
- an original duly executed bill of sale or other evidence of ownership together with a copy thereof (once presented to the Registrar the original is returned to the applicant);
- if previously registered in a foreign country, sufficient proof that such registration has been cancelled or is no longer valid, namely: (a) a declaration by the authorised public authority in the foreign country where the aircraft was previously registered whereby the registration was cancelled or is no longer valid, including the details of the person declaring the same on behalf of the relevant authority and details of the aircraft; or (b) a final order or ruling by a court or authorised tribunal in the applicable country stating that the registration is no longer in effect;
- if not previously registered in a foreign country, an affidavit or other sufficient proof that the aircraft has never been registered in a foreign country to the satisfaction of the Registrar;
- a receipt for the payment of the applicable registration fees in respect of the certificate of registration and issuance of the applicable registration marks;
- in the event of a change of ownership, any previous certificates of registration for the aircraft, as well as sufficient proof regarding the change in ownership; and
- in respect of an aircraft not previously registered in Israel, proof of payment of the applicable customs payment (or exemption thereof). The Registrar will accept a certificate (reshimon) on the importation of goods executed by the customs authority as sufficient proof (with the option to delay the presentment of such a certificate for 30 days if the aircraft is to be registered prior to its arrival to Israel by a Civil Aviation Authority supervisor).
The Registration Regulations also provide for additional registration requirements in special circumstances, such as in transfers by force of law, inheritance or realisation of security.
Title to an engine would not automatically vest in the owner of a host aircraft and this matter is dependent on the underlying circumstances.
Title and third parties
What is the effect of registration of an ownership interest as to proof of title and third parties?
Pursuant to the Registration Regulations, registration of an ownership interest in the Registry does not constitute proof of title. The Registration Regulations do provide that registration shall constitute conclusive evidence of the aircraft’s nationality for international purposes, and prima facie evidence of its nationality for the purpose of any proceedings taken in accordance with the laws of Israel.
Registration of lease interests
Summarise the process to register a lease interest.
There is no specific process to register a lease interest with the Registry.
Certificate of registration
What is the regime for certification of registered aviation interests in your jurisdiction?
The certificate of registration is issued by the Registrar and contains the following:
- aircraft serial number;
- nationality and registration marks;
- aircraft manufacturer and manufacturer’s designation of aircraft;
- owner’s name and address;
- date of issue of certificate of registration;
- details of the Registrar;
- details of any charges and attachments on or to the aircraft (if applicable); and
- information on the different circumstances wherein the certificate will expire (as prescribed by the Registration Regulations) and other matters addressing completion of the application form, requirement on change of address etc.
As noted, the Registrar does not issue separate engine certificates of registration.
Deregistration and export
Is an owner or mortgagee required to consent to any deregistration or export of the aircraft? Must the aviation authority give notice? Can the operator block any proposed deregistration or export by an owner or mortgagee?
Since the Registry is an owner registry the deregistration of aircraft would require the execution of the relevant application forms by the owner itself (or representative thereof).
Under the Registration Regulations, if the interests of the financing party holding a charge or attachment in the aircraft are registered with the Registry, the Registrar will not permit any change to be made in the registration of the aircraft without the consent of the holder of the charge or by order of the court or chief execution officer expressly transferring or cancelling the charge or attachment.
The operator of the aircraft has no standing in itself in regard to registration or deregistration of an aircraft and thus cannot block any such action without obtaining an appropriate court order.
Powers of attorney
What are the principal characteristics of deregistration and export powers of attorney?
A power of attorney must comply with general requirements of Israeli law governing powers of attorney. The courts will generally uphold an irrevocable power of attorney if it is expressly designated as such.
The Registration Regulations enable owners to issue notarised or certified powers of attorneys to their agents or representatives for the purpose of executing registration and deregistration applications. Any such power of attorney may not be utilised after three years of its granting unless it is expressly granted for a longer period. Given the aforesaid, if the chargee is deemed the ‘agent’ or ‘representative’ of the owner then such chargee may be able to deregister the aircraft by filing the relevant application forms with the Registrar. It should be noted that given the general insolvency laws in Israel and the fact that under the Pledges Law only certain prescribed financial institutions are entitled to ‘self help’ when realising secured assets, any recognition of a deregistration power of attorney may be subject to the discretion of the courts and therefore there is no guarantee that the Registrar (or any other relevant governmental body) would recognise a deregistration and export power of attorney; however, it is quite customary for a secured lender to request and receive the same.
A power of attorney would normally expire upon the liquidation or bankruptcy of the grantor.
It is not possible to register the deregistration and export power of attorney.
Cape Town Convention and IDERA
If the Cape Town Convention is in effect in the jurisdiction, describe any notable features of the irrevocable deregistration and export request authorisation (IDERA) process.
The Cape Town Convention is not in effect in Israel.
Security document (mortgage) form and content
What is the typical form of a security document over the aircraft and what must it contain?
Security over an aircraft typically takes the form of either a charge (debenture) or a pledge, depending on the type of granting entity. There is no limitation on entering into a security document in English provided that in the case of security created by an Israeli company, a certified Hebrew translation of the security document must be provided to the Companies Registrar for registration. It should be noted that as of June 2017 the provision of financing to clients in Israel is regulated by the Supervision of Financial Services (Regulated Financial Services) Law, 2016 which may in certain cases require the financing entity to apply for a ‘financial services’ licence in Israel unless expressly exempted under the said law or under the authority of relevant government entity in charge of enforcing the said law.
There is no specified form for such security document and normally such documents are crafted to reflect the parties’ commercial agreement, but at the very least it should state the following:
- the details of the parties;
- the assets being secured;
- the type of security being granted;
- the amount secured (whether fixed or unlimited); and
- any limitations on future grants of security.
There is no requirement to record the economic terms of the transaction within the security document.
Security documentary requirements and costs
What are the documentary formalities for creation of an enforceable security over an aircraft? What are the documentary costs?
There are no particular documentary formalities when creating a charge or pledge over an aircraft other than in relation to the filing of the relevant charge or pledge with the appropriate public authority (see question 17). There are no stamp or other documentary costs as such.
Security registration requirements
Must the security document be filed with the aviation authority or any other registry as a condition to its effective creation or perfection against the debtor and third parties? Summarise the process to register a mortgagee interest.
In the case of an Israeli company, the security document must be in the form of a debenture and registered with the Companies Registrar within 21 days of its creation, otherwise it may have no effect against a liquidator or other creditors. In the case of a foreign entity or an Israeli individual or partnership, the security document should take the form of a pledge and be filed with one of the pledge registration offices based on the residence of the pledgor so as to be valid and effective against other creditors.
The registration process varies somewhat depending on the person or entity creating such interest; however, it does generally require the completion of a prescribed form containing the basic terms of the relevant security interest together with the underlying security document (in case of filings to the Companies Registrar). There are no costs for filing a charge with the Companies Registrar; however, filing a pledge with the Pledges Registrar is accompanied by the payment of a nominal fee depending on the term of the pledge. The registration of a charge would remain in effect until it is expressly released; however, registration of a pledge is for a limited amount of time and must be renewed as applicable.
Once filed, the relevant authority issues a certificate evidencing the registration of the security interest and registers such interests within its records. The certificate of pledge is normally issued immediately upon filing, while the issuance of a certificate of charge may take longer.
Once the pledge or charge is duly registered it is recommended that such security interest be noted in the Registry with such security interest endorsed by the Registrar upon the aircraft’s certificate of registration. A person wishing to note such a security interest in the Registry must submit a true certified copy of sufficient proof of a pledge or charge, which may take one of the following forms:
- a pledge notice filed in accordance with the Pledges Regulations;
- a certificate, duly signed by the Companies Registrar, reflecting the registration of a pledge or charge;
- a certificate, duly signed by a registrar authorised by statute, reflecting the registration of a pledge or charge;
- an order reflecting the imposition of a pledge or charge, issued by a court, a tribunal or the chief execution officer (the head of the execution office, which is part of the enforcement and collection authority);
- a receipt for the payment of the applicable registration fees;
- the certificate of registration of the aircraft (if held by such person); or
- if the request to register a pledge/charge is made by an agent/representative of the applicant, the Registrar may require the presentment of a notarised power of attorney complying with the formalities applicable to powers of attorney as set out in question 8.
Once a security interest is noted in the Registry by the Registrar, the Registrar will refrain from making any change to the registration of the aircraft without the consent of the secured party or by court order.
Registration of security
How is registration of a security interest certified?
The Pledges Registrar and Companies Registrar issue certificates evidencing the registration of the relevant security. Such certificates do not state the rank or priority of the relevant security interest.
Effect of registration of a security interest
What is the effect of registration as to third parties?
As noted, a charge over an aircraft must be filed within 21 days of its creation for it to have any effect against a liquidator or other creditors. Once a certificate is issued following registration, it serves as conclusive evidence that all requirements for registration are met. Should the security interest be registered with the Pledges Registrar, the pledge shall be effective upon other creditors only upon registration thereof. Third parties may generally rely upon the accuracy of such public registrations. As noted n question 17, it is recommended that such a security interest also be noted in the Registry and endorsed by the Registrar upon the aircraft’s certificate of registration, and thereupon the Registrar will refrain from making any change to the registration of the aircraft without the consent of the secured party or by court order.
The general principle under Israeli bankruptcy laws is that in a conflict between secured rights that have equal ranking, the earlier right shall have priority.
Security structure and alteration
How is security over aircraft and leases typically structured? What are the consequences of changes to the security or its beneficiaries?
Security over aircraft is typically structured by creating a specific charge over an aircraft and identifiable engines, parts and equipment (including identifiable spare engines and spare parts) and a separate floating charge over any other parts of the aircraft not covered by the fixed charge. This is done in order to defeat any claims that the fixed charge does not cover any item that did not attach to the aircraft at the time of the original charge. Should the security be granted over lease payments, such security is normally constructed as an assignment by way of charge (which is substantially similar to an English law security assignment).
The concept of a security trustee is generally recognised in Israel and used in granting of security depending on the particular circumstances. In such cases the relevant security is granted in favour of the security trustee on behalf of the relevant beneficiaries. It is also possible to register the security in favour of the beneficiaries together with the security trustee. In circumstances where security is granted for the benefit of a security trustee, the security trustee is considered the holder of the security and may exercise any rights associated therewith. In such circumstances the security would be registered in the name of the security trustee without naming the underlying syndicate so that variation of the relevant beneficiaries would not normally require amendment of the actual charge. Should a beneficiary be named as an additional chargee in the original registration, any change of such beneficiary may require re-registration of the charge, which may impact priority.
Security over spare engines
What form does security over spare engines typically take and how does it operate?
Security over a clearly identifiable and distinguishable spare engine may take the form of an independent fixed charge or a pledge over the spare engine itself in a similar manner as security over the aircraft itself would be created, as noted above. If the spare engine is not identifiable at the time of creation of the relevant security interest over the aircraft it is possible for Israeli companies to register a floating charge over any spare engine relating to the host aircraft, which would normally only crystallise into a fixed charge upon the default of the relevant debtor or its bankruptcy (subject to the terms of the relevant debenture). In both cases, once registered, the relevant charging or pledging of the spare engine would create an effective security interest.
Separate security over a financed engine that is installed on a financed host aircraft would normally be treated as separate independent security and would remain in effect even if removed from the aircraft.
Repossession following lease termination
Outline the basic repossession procedures following lease termination. How may the lessee lawfully impede the owner’s rights to exercise default remedies?
Where the lessee prevents the lessor from taking possession of the aircraft, the lessor will usually have no other choice but to apply to the relevant court for a declaration as to its right to take possession, its ownership of the aircraft or relief by way of court order for the return of the asset. Under Israeli law the parties to an agreement are not prevented from incorporating a clause into an agreement to allow for ‘self-help’ in certain circumstances. However, in practice, a lessor will typically turn to the police or the courts for assistance to recover the property. That said, it should be noted that the self-help provisions in the Moveable Property Law, 1971 limit the period of self-help to 30 days from the first day of unlawful possession.
Enforcement of security
Outline the basic measures to enforce a security interest. How may the owner lawfully impede the mortgagee’s right to enforce?
A pledge or charge over an aircraft may generally be realised by court order or by the chief execution officer, the latter of which is considered as the more efficient means of realisation. The chief execution officer would attempt to sell the aircraft to the highest bidder, who must usually bid above the official appraised value previously sought by the chief execution officer. Self-help remedies are available to limited types of Israeli financial institutions expressly listed in the Pledges Law, 1967 although in most cases such institutions would utilise the court or execution office to exercise their security. It is possible to attempt to detain the aircraft by means of an ex parte application for temporary injunction or attachment should there be compelling arguments to do so, for instance, if irreparable damages would otherwise be caused to the creditor. Insolvency proceedings are not intended to limit a secured creditor’s rights from exercising its security and commencing legal proceedings against a debtor. That said, recent amendments to Israeli law have limited the ability of secured creditors from exercising their security in certain restructuring proceedings unless it is demonstrated that:
- the secured asset does not afford the secured creditor appropriate protection and no other means of protection have been put in place; or
- the realisation of the security would not impair the likelihood of recovery of the relevant company.
As noted above, the newly passed Insolvency Law, which is expected to come into effect in September 2019, may affect this analysis.
Priority liens and rights
Which liens and rights will have priority over aircraft ownership or an aircraft security interest? If an aircraft can be taken, seized or detained, is any form of compensation available to an owner or mortgagee?
In most cases the holder of a fixed charge or pledge over an aircraft would have priority over other creditors; however, there are certain limited creditors that may be granted priority over such secured creditors, including the following:
- expenses of a receiver appointed to realise a debenture;
- certain costs of the execution office;
- holders of possessory liens such as mechanics’ liens or the like (a variety of different civil laws grant such possessory lien rights including to the Airports Authority); and
- holders of set-off rights whose debt existed prior to the insolvency.
The Registration and Mobilisation of Equipment to the Israeli Defence Forces Law, 1987 grants authority to the Minister of Defence to requisition any aircraft located in Israel with a reasonable payment made to the owner and additional compensation if any damages are suffered during such time.
As noted in question 2, the newly passed Insolvency Law, which is expected to come into effect in September 2019, may affect this analysis.
Enforcement of foreign judgments and arbitral awards
How are judgments of foreign courts enforced? (In particular English and New York court judgments?) Is your jurisdiction party to the 1958 New York Convention?
Taxes and payment restrictions
What taxes may apply to aviation-related lease payments, loan repayments and transfers of aircraft? How may tax liability be lawfully minimised?
Corporation tax on lease or loan payments
Under the Income Tax Ordinance (New Version), 1961 (the Ordinance), non-residents of Israel are subject to income tax in Israel only in respect to income accrued or derived from a source in Israel. However, under Israeli law there is a specific exemption from income tax for interest and leasing or rental payments made by an Israeli resident to a non-Israeli resident in connection with an aircraft that transports passengers or cargo in international lines. In addition, one should also examine the applicable international tax treaty, which may shift the tax liability to the corresponding contracting state (subject to the terms of the relevant treaty).
Where a financier or owner is a resident of a foreign country and is liable for tax in Israel, in many cases such tax is remitted to the Israeli Tax Authorities (ITA) by means of a deduction or withholding by the lessee or borrower. Payments that constitute taxable income in Israel that are made to non-Israeli resident companies or individuals by Israeli taxpayers, are generally subject to withholding of tax at the source at a rate ranging between 20 and 25 per cent, unless a specific exemption is applicable under the Ordinance or a specific treaty. Even if a specific exemption does apply, in practice, a specific exemption certificate issued by the ITA may be required by the financial institutions in Israel effecting the relevant payment. It is customary to include a gross-up provision in the applicable lease or loan documentation, which, if properly drafted, should effectively mitigate the tax risk relating to withholding.
Value added tax
Section 2 of the Value Added Tax Law, 1975 (the VAT Law), provides that Israeli VAT (currently at 17 per cent) is imposed on a transaction in Israel and on the import of goods into Israel. This would apply to payments made in connection with a purchase or leasing of an aircraft and on interest payments related to loan payments on a financed aircraft. However, certain transactions are zero-rated for the purpose of VAT, such as the sale of aircraft to a dealer (such as a lessee) whose business is the provision of regular flight services and in scheduled lines for the transportation of passengers or the transportation of cargo for consideration.
Under the VAT Law the party liable for payment of any VAT due on the importation of goods into Israel is the ‘owner’ of the goods, a term that is defined in a very broad manner and thus may apply to both the lessor and lessee.
Capital gains tax
Any sale of an aircraft may also be subject to capital gains tax in Israel and the delivery mechanisms should be constructed accordingly to mitigate any such risk.
Are there any restrictions on international payments and exchange controls in effect in your jurisdiction?
There are no exchange controls or restrictions regarding international payments under Israeli law that are specific to civil aviation financing.
Are there any limitations on the amount of default interest that can be charged on lease or loan payments?
The Interest Law, 1957, authorises the Minister of Finance to determine the maximum rate of interest that a lender may receive from a borrower (currently limited to 17 per cent) with regard to certain types of transactions prescribed by the Minister of Finance.
The Regulation of Non-Bank Loans Law, 1993, which governs loans granted by lenders that are not Israeli ‘banking corporations’ or ‘auxiliary corporations’, provides, inter alia, as follows:
- with regard to loans under a prescribed threshold (currently approximately NIS 1.2 million) (the Threshold) to which the Interest Law does not apply, the ratio between the interest and any other amount that the borrower is required to pay (excluding default interest and reasonable actual collection expenses relating to such default interest) on one hand, and the principal on the other hand, in an annual calculation (the Ratio) shall not exceed:
(i) with respect to loans provided in NIS: the interest rate of the Bank of Israel (currently 0.1 per cent) + 15 per cent; or
(ii) with respect to loans provided in a foreign currency: LIBOR + 15 per cent, or, if the loan is granted in the currency of a country in respect of which the LIBOR is not published, the interest of the central bank in such country + 15 per cent;
- for loans linked to an index or other reference base, such index or reference base needs to be an index, interest or other reference base over which the lender has no control and which is published in public in accordance with applicable law or custom; and
- the default interest in loans under the Threshold shall not exceed 1.2 times the Ratio on an annual basis.
It should be noted that certain additional amendments to the Regulation of Non-Bank Loans Law are expected to come into effect on 8 November 2018.
Customs, import and export
Are there any costs to bring the aircraft into the jurisdiction or take it out of the jurisdiction? Does the liability attach to the owner or mortgagee?
There may be customs duties payable in connection with the importation of aircraft depending on the category of aircraft and on whether the importation is on a temporary or permanent basis. Additionally, there may be additional customs charges and fees in relation to the importation of the aircraft. The party liable for payment of any customs due on the importation of goods into Israel is the owner of the goods, a term which is defined in a very broad manner to include a lessee. If the lessee fails to pay such customs (if applicable), the actual owner may have liability, which could be assessed in rem against the asset.
There may be costs relating to the exportation of the aircraft specifically in relation to deregistration of the aircraft.
Insurance and reinsurance
Summarise any captive insurance regime in your jurisdiction as applicable to aviation.
There is no captive insurance regime in Israel relating to aircraft. Local practice for aircraft used in international transport is to place insurance in the international markets.
Are cut-through clauses under the insurance and reinsurance documentation legally effective?
As a matter of general contract law a cut-through clause should be enforceable if properly drafted in a manner clearly establishing privity.
Are assignments of reinsurance (by domestic or captive insurers) legally effective? Are assignments of reinsurance typically provided on aviation leasing and finance transactions?
If the assignment of reinsurance is properly drafted and proper notice is provided, an assignment of reinsurance should typically be recognised by the courts.
Can an owner, lessor or financier be liable for the operation of the aircraft or the activities of the operator?
The owner of an asset or its financier may be liable in tort or on other grounds in Israel for damages caused in connection with the operation of the aircraft or the activities of the operator if sufficient linkage is established between the damage caused and the acts or omissions of the relevant entity under general principles of tort laws.
Does the jurisdiction adopt a regime of strict liability for owners, lessors, financiers or others with no operational interest in the aircraft?
Israel has not adopted a regime of strict liability for owners, lessors, financiers or others with no operational interest in the aircraft. However, if the lessor is deemed the importer of the aircraft into Israel it may have exposure under the Defective Products Liability Law, 1980.
Third-party liability insurance
Are there minimum requirements for the amount of third-party liability cover that must be in place?
Currently there are no minimum requirements for the amount of third-party liability cover; however, there are draft regulations on this subject matter in circulation.
*The authors wish to acknowledge the help of Chen Arbel with this chapter.
Update and trends
Update and trends
Are there any emerging trends or hot topics in aviation finance and leasing in your jurisdiction?
As of March 2018, a new Insolvency and Financial Rehabilitation Law, 2018 (the Insolvency Law) was legislated which made substantial changes to numerous matters relating to insolvency issues, including inter alia creditor rights and company liquidation proceedings. The Insolvency Law is expected to come into effect in September 2019 and has not been addressed herein.
As of June 2017, the provision of financing to clients in Israel is regulated by the Supervision of Financial Services (Regulated Financial Services) Law, 2016, which may in certain cases require the financing entity to apply for a financial services licence in Israel unless expressly exempted under the said law or under the authority of the relevant government entity in charge of enforcing the said law.