INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT (AIRCRAFT) ACT 2006

International Interests in Mobile Equipment (Aircraft) LAWS OF MALAYSIA REPRINT Act 659 INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT (AIRCRAFT) ACT 2006 As at 1 November 2012 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2012 1 2 Date of Royal Assent Act 659 Laws of Malaysia … … … … 30 August 2006 Date of publication in the Gazette … … 31 August 2006 International Interests in Mobile Equipment (Aircraft) LAWS OF MALAYSIA 3 Act 659 International Interests in mobile equipment (Aircraft) Act 2006 ARRANGEMENT OF SECTIONS Section 1. Short title and commencement 3. Interpretation 2. 4. 5. 6. 7. Application of 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 Relevant courts Power to make regulations Non-application of other Acts Prevailing law First Schedule Second Schedule 4 Laws of Malaysia Act 659 International Interests in Mobile Equipment (Aircraft) LAWS OF MALAYSIA 5 Act 659 International Interests in mobile equipment (Aircraft) Act 2006 An Act to implement the Convention on the International Interests in Mobile Equipment, and the Protocol to that Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, and to provide for matters connected therewith. [19 October 2006; P.U. (B) 281/2006] WHEREAS the Convention on International Interests in Mobile Equipment was opened for signature at Cape Town on 16 November 2001; AND WHEREAS the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment was opened for signature at Cape Town on 16 November 2001; AND WHEREAS Malaysia deposited her instruments of accession on 2 November 2005 and therefore in accordance with Article 49 of the Convention and Article XXVIII of the Protocol, the said Convention and Protocol entered into force as far as Malaysia is concerned on 1 March 2006: NOW, THEREFORE, IT IS ENACTED by the Parliament of Malaysia as follows: Short title and commencement 1. (1) This Act may be cited as the International Interests in Mobile Equipment (Aircraft) Act 2006. 6 Laws of Malaysia Act 659 (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Application of 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 2. (1) Subject to subsection (2), the Convention on International Interests in Mobile Equipment as set out in the First Schedule and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment as set out in the Second Schedule shall have the force of law in Malaysia and for that purpose be construed in accordance with the provisions of this Act. (2) Notwithstanding Article 2 of the Convention on International Interests in Mobile Equipment, this Act shall apply in respect of aircraft objects only. Interpretation 3. In this Act, unless the context otherwise requires— “this Act” includes any subsidiary legislation made under this Act; “Cape Town Convention” means the Convention on International Interests in Mobile Equipment; “Minister” means the Minister charged with the responsibility for civil aviation; “aircraft object” means any airframe, aircraft engine and helicopter as defined under Article I(2) of the Aircraft Protocol; “Aircraft Protocol” means the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment. International Interests in Mobile Equipment (Aircraft) 7 Relevant courts 4. Pursuant to Article 53 of the Cape Town Convention, all courts with competent jurisdiction shall be the relevant courts for the purposes of Article 1 and Chapter XII of that Convention. Power to make regulations 5. The Minister may make such regulations as may be expedient or necessary for the better carrying out of the provisions of this Act, to provide generally for regulating and carrying out the Cape Town Convention and the Aircraft Protocol and any amendments of such Convention and Protocol. Non-application of other Acts 6. (1) Subsection 108(3) of the Companies Act 1965 [Act 125] shall not apply to a charge on any aircraft objects falling within the scope of the Cape Town Convention and the Aircraft Protocol. (2) Subsection 4(3) of the Civil Law Act 1956 [Act 67] shall not apply to any assignment falling within the scope of the Cape Town Convention and the Aircraft Protocol. Prevailing law 7. (1) Subject to section 6, the provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other written law relating to the financing and leasing of aircraft object, creation of international interests in aircraft object and their registration thereof. (2) Notwithstanding subsection (1), to the extent of any conflict or inconsistency between the provisions of this Act and those of any other written law relating to matters governed by the Cape Town Convention and the Aircraft Protocol, the provisions of this Act shall prevail and the conflicting or inconsistent provisions of such other written law shall, to the extent of the conflict or inconsistency, be deemed to be superseded. 8 Laws of Malaysia Act 659 First Schedule [Subsection 2(1)] CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT THE STATES PARTIES TO THIS CONVENTION, AWARE of the need to acquire and use mobile equipment of high value or particular economic significance and to facilitate the financing of the acquisition and use of such equipment in an efficient manner, RECOGNISING the advantages of asset-based financing and leasing for this purpose and desiring to facilitate these types of transaction by establishing clear rules to govern them, MINDFUL of the need to ensure that interests in such equipment are recognised and protected universally, DESIRING to provide broad and mutual economic benefits for all interested parties, BELIEVING that such rules must reflect the principles underlying asset-based financing and leasing and promote the autonomy of the parties necessary in these transactions, CONSCIOUS of the need to establish a legal framework for international interests in such equipment and for that purpose to create an international registration system for their protection, TAKING INTO CONSIDERATION the objectives and principles enunciated in existing Conventions relating to such equipment, HAVE AGREED upon the following provisions: Chapter I Sphere of application and general provisions Article 1 — Definitions In this Convention, except where the context otherwise requires, the following terms are employed with the meanings set out below: (a) “agreement” means a security agreement, a title reservation agreement or a leasing agreement; (b) “assignment” means a contract which, whether by way of security or otherwise, confers on the assignee associated rights with or without a transfer of the related international interest; (c) “associated rights” means all rights to payment or other performance by a debtor under an agreement which are secured by or associated with the object; International Interests in Mobile Equipment (Aircraft) 9 (d) “commencement of the insolvency proceedings” means the time at which the insolvency proceedings are deemed to commence under the applicable insolvency law; (e) “conditional buyer” means a buyer under a title reservation agreement; (f) “conditional seller” means a seller under a title reservation agreement; (g) “contract of sale” means a contract for the sale of an object by a seller to a buyer which is not an agreement as defined in (a) above; (h) “court” means a court of law or an administrative or arbitral tribunal established by a Contracting State; (i) “creditor” means a chargee under a security agreement, a conditional seller under a title reservation agreement or a lessor under a leasing agreement; (j) “debtor” means a chargor under a security agreement, a conditional buyer under a title reservation agreement, a lessee under a leasing agreement or a person whose interest in an object is burdened by a registrable non-consensual right or interest; (k) “insolvency administrator” means a person authorised to administer the reorganisation or liquidation, including one authorised on an interim basis, and includes a debtor in possession if permitted by the applicable insolvency law; (l) “insolvency proceedings” means bankruptcy, liquidation or other collective judicial or administrative proceedings, including interim proceedings, in which the assets and affairs of the debtor are subject to control or supervision by a court for the purposes of reorganisation or liquidation; (m) “interested persons” means: (i) the debtor; (ii) any person who, for the purpose of assuring performance of any of the obligations in favour of the creditor, gives or issues a suretyship or demand guarantee or a standby letter of credit or any other form of credit insurance; (iii) any other person having rights in or over the object; (n) “internal transaction” means a transaction of a type listed in Article 2(2)(a) to (c) where the centre of the main interests of all parties to such transaction is situated, and the relevant object located (as specified in the Protocol), in the same Contracting State at the time of the conclusion of the contract and where the interest created by the transaction has been registered in a national registry in that Contracting State which has made a declaration under Article 50(1); (o) “international interest” means an interest held by a creditor to which Article 2 applies; 10 Laws of Malaysia Act 659 (p) “International Registry” means the international registration facilities established for the purposes of this Convention or the Protocol; (q) “leasing agreement” means an agreement by which one person (the lessor) grants a right to possession or control of an object (with or without an option to purchase) to another person (the lessee) in return for a rental or other payment; (r) “national interest” means an interest held by a creditor in an object and created by an internal transaction covered by a declaration under Article 50(1); (s) “non-consensual right or interest” means a right or interest conferred under the law of a Contracting State which has made a declaration under Article 39 to secure the performance of an obligation, including an obligation to a State, State entity or an intergovernmental or private organisation; (t) “notice of a national interest” means notice registered or to be registered in the International Registry that a national interest has been created; (u) “object” means an object of a category to which Article 2 applies; (v) “pre-existing right or interest” means a right or interest of any kind in or over an object created or arising before the effective date of this Convention as defined by Article 60(2)(a); (w) “proceeds” means money or non-money proceeds of an object arising from the total or partial loss or physical destruction of the object or its total or partial confiscation, condemnation or requisition; (x) “prospective assignment” means an assignment that is intended to be made in the future, upon the occurrence of a stated event, whether or not the occurrence of the event is certain; (y) “prospective international interest” means an interest that is intended to be created or provided for in an object as an international interest in the future, upon the occurrence of a stated event (which may include the debtor’s acquisition of an interest in the object), whether or not the occurrence of the event is certain; (z) “prospective sale” means a sale which is intended to be made in the future, upon the oc