What is the purpose of the Convention on International Interests in Mobile Equipment?
The Convention on International Interests in Mobile Equipment is an international agreement that sets out ground rules for how creditors’ rights are to be protected when granting credit with mobile equipment as collateral. The Convention applies to any transaction that involves mobile equipment, such as aircraft and vessels, used for industrial or commercial purposes. In California, the Convention was adopted in 2019 as a way to create consistency among the laws of the various countries involved. It ensures that international creditors are able to apply their own laws to the mobile equipment they finance, while also providing international debtors with protection from a variety of creditors in different countries. By establishing a global standard, the Convention provides greater legal certainty and reduces transaction costs. The Convention also safeguards the interests of aircraft leasing companies that may have to do business across several countries. For example, the Convention sets out rules on how to register aircraft leases so that creditors have greater confidence that their interests will be protected. Overall, the Convention serves an important purpose in aircraft law. It helps ensure that creditors have the legal protections they need while providing debtors with greater security. Furthermore, it streamlines the process of airline leasing and other transactions involving mobile equipment, making it easier for companies to conduct business across borders.
Related FAQs
How is aircraft import/export regulated?What rights do pilots have under Aircraft Law?
What are the legal requirements for aerial surveillance of aircraft?
What are the different types of aircraft certifications?
How do airport laws affect aircraft operations?
What are the legal requirements for aircraft ownership transfer?
What are the regulations concerning airspace use by unmanned aircraft systems?
What is the scope of the Montreal Convention on International Air Transport?
What are the legal requirements for aircraft maintenance, repair and overhaul (MRO)?
What is the international law concerning aviation accidents?
Related Blog Posts
Aircraft Law: An Overview of the Legal Environment for Aviation - July 31, 2023Aircraft Law and Liability: What to Know When Flying - August 7, 2023
Aircraft Accident Investigations: Understanding the Process - August 14, 2023
Tax Implications of Aircraft Ownership: Critical Considerations - August 21, 2023
Aircraft Registration and Leasing: What You Need to Know - August 28, 2023