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Principles Underlying the Convention System

The Cape Town Convention aims at establishing a legal framework that will facilitate financing and leasing of high value mobile equipment.[1] The Convention and Aircraft Protocol are premised on three Principles needed to establish such a framework. These are:

  • 1. priority among secured interests (“international interests”) evidenced by a transparent registration system,
  • 2. prompt enforcement of secured interests in case of default by the debtor, including private enforcement, and
  • 3. enforcement of the secured interests without being qualified or modified under the insolvency procedure.[2] [3]

These principles have largely been adopted by the Convention and its Protocols. Since South Africa is a Contracting Party we are invited to analyse whether, and to what extent, these principles were consistent with the national law before becoming a Party to the Cape Town Convention.

  • [1] Roy Goode, Convention on International Interests in Mobile Equipment and Protocol Thereto onMatters Specific to Aircraft Equipment: Official Commentary, para. 2.1. (Revised edition 2008,Rome).
  • [2] Anthony Saunders, Anand Srinivasan, Ingo Walter & Jeffrey Wool, The Economic Implicationsof Secured Transactions Law Reform: A Case Study, University of Pennsylvania Journal ofInternational Economic Law, Vol. 20, p.309, at 324.
  • [3] See, e.g. Chris Christodoulou, International Comparative Legal Guide, Aviation Law 2015: 3stEdition,, Global Legal Group, www.iclg.co.uk, accessed 28 June 2015.
 
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