Filing System for Security Interest
There is no system of registration in Russian Federation, which is equivalent to International Registry under Cape Town Convention. As it was said above there is the single state register of immovables and rights in things founded by the institutions of justice (Art.131 CC of RF). This register is fixing the right of ownership and other rights in things (property rights) to immovable things, limitation of these rights; the origin, transfer and termination of these rights. The mortgage is subject to such registration. The Federal Law of 21of July 1997N.122-FZ “On State Registry of Immovables and Transactions With Them” (In the reduction of Federal Law of 21 of July 2014N.224 -FZ) is the basis for rules on the registration and transfer of rights to immovable under the contract of purchase and sale (Art.551,558, and 560 of the CC of RF), under other contracts (for example, contract of gift - art. 573-574, contract of rent -art.584), including the contract of lease (Articles 651 and 658 of the Civil Code).
The Cape Town Convention provides for special protection equivalent to the protection of investments. According to the Russian legislation the investor providing investments in the form of, for example, leasing or factoring contracts is not protected as investor but as an ordinary creditor. The right or claim belonging to a creditor on the basis of obligation may be transferred by it to another to another person by a transaction (assignment of claim) (Art. 382 of the Civil Code).
Assignment of claim is considered as a changing persons in obligation. (Cm.: Гражданское право. Под редакцией E.A. Суханова. M. 2002. C.37). The Procedure for Transfer of the rights to another person depends on the kind of the property being transferred. Assignment of a property that is to be registered (immovables or airships and ocean-soins vessels, inland waterway vessels, outer space objects) is to be registered also. The contract of assignment does create a new obligation which continues to be connected with the main contract, for example, contract of sale. (Cm.: Бpaгинcкий М.И., Bитpянcкий B.B. Дoгoвopнoe пpaвo. Часть c.373-374). This position of a doctrine makes the assignment according to Russian legislation different from the assignment according to Cape Town Convention. But this view does not prevent from applying the Cape Town Convention with the special regime of protection for assignor.
The assignment as a way to change the party to the contract (the dominant view in Russian doctrine) can infringe upon creditor’s rights in case of insolvency of a debtor and in relations with the other creditors. The first rank creditor may be responsible for the validity of the obligation but not for the execution of the obligation. The debtor may become responsible for the period of payment but not for the execution of obligation in the case of his insolvency. So registration within the Cape Town Convention is a good guarantee of the rights of a party to the international contract in case of transfer of aircraft equipment.
Natalia Doronina (Doctor of Law) is the Deputy chief of the Department of economic and legal studies of State and municipal activity of the Institute of Legislation and Comparative Law at the Government of Russian Federation, Doctor of Law, Professor, The Honored Jurist of Russian Federation. Prior to holding the current position, she had been researcher, senior researcher, leading researcher, Chief of Department of Private International Law of the Institute of Legislation and Comparative Studies of Law within the Government of Russian Federation during 1976-2009. She was Professor at the Chair of Civil Law of Moscow International University, The Program and the Course of Lectures on Investment Law, during 1996-1997; Professor at the Chair of Civil Law of the Academy of Labor and Social Relations, the Course of Lectures on Civil Law of foreign countries, The Program and the Course of Lectures on Investment Law in Russian Federation during 1997-2001; Professor at the Chair of Civil Law of the Russian State Academy of Taxes during 2001-2009; Deputy Director of the Institute of Legislation and Comparative Studies of Law within the Government of Russian Federation during 2010-2013; Deputy Director of the Center for Economic and Legal Studies of the Institute of Legislation and Comparative Studies of Law within the Government of Russian Federation during 2013-2014. Her publications include:
- - Organizational and Legal Forms of Foreign Investments in Developing Countries, Dissertation & Thesis for academic degree of Doctor of Law, Moscow State Institute of Foreign Relations. 1979
- - Regulation of Foreign Investments in Russia and Abroad (with Natalya G. Semilutina as co-author). Moscow. Finstatinform. 1993.
- - Regulation of Foreign Investments (the Evolution of Sources of Law and the Perspectives of the Development of Russian Legislation). Moscow 1995. Manuscript deposited in INION RAN N50171 of 16.03.1995
- - Regulation of Foreign Investments (Legal Problems and Resolutions). Dissertation & Thesis for academic degree of Doctor of Law. Moscow 1996;
- - State and Investment Regulation. Moscow. Gorodets. 2003. (with co-author);
- - The Commentary on the Law on Investment Funds. Moscow. The Publishing House “Justicinform”. 2003. (with co-author);
- - “The Property Law”, “The Law of Legal Persons” in Private International Law. (pp. 602). Editor: professor N I. Marysheva. Moscow. Jurist. 2004
- - “Concession Agreements” in Certain Kinds of Obligations in Private International Law. Editor: V.P. Zvekov. Moscow. 2008.
- - “The Property Law”, “The Law of Legal Persons” in Private International Law. Editor: professor N I. Marysheva. Moscow. Walters Kluver 2010
- - Private International Law and Investments. Cj-author Semilutina N. Moscow 2012