Bills relating to the ratification of the Convention on International Interests in Mobile Equipment (the “Cape Town Convention”) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the “Aircraft Protocol”) (the Cape Town Convention and Aircraft Protocol, together, “the Convention”) received Royal Assent on 28 June 2013
Further to our client alerts (here and here), on 28 June 2013, the International Interests in Mobile Equipment (Cape Town Convention) Bill 2013 (found here) and the International Interests in Mobile Equipment (Cape Town Convention) (Consequential Amendments) Bill 2013 (found here) received Royal Assent.
The relevant Acts are yet to be published.
The Australian Government will now take steps to put the Convention into effect, including:
- putting in place relevant legislative rules that would need to apply in connection with the Convention. For example, the Civil Aviation Safety Authority will need to be empowered to recognise any relevant rights or interests of aircraft financiers and lessors under the Convention with respect to aircraft registered in Australia;
- formulating the declarations Australia would make with respect to the Convention (we expect the declarations will closely resemble the declarations made by New Zealand and will be “qualifying declarations” for the purposes of obtaining access to the ECA’s “Cape Town discount”);
- seeking approval from the Federal Executive Council of Australia; and
- depositing with UNIDROIT certain documents evidencing the implementation of the Convention in Australia.
From a timing perspective, we expect the Convention to take effect in Australia by year end. The steps set out above will generally need to take place sequentially, and a three month waiting period applies under the Convention once the last of these steps is taken.