CAYMAN ISLANDS Law and Practice Contributed by: Sarah Humpleby, Alexandra Franklin, Peter Kendall and Sam Hall, Walkers
lease and authorisation that the aircraft can be deregistered, accompanied by certified copies of all relevant legal documents; • when an aircraft has a registered mortgage on the Mortgage Register, either: (a) a mortgage discharge application form; or (b) a letter of authorisation from the mortgagee indicating how the mortgage should be dealt with, specifying: (i) a description of the mortgage, including the reference number; (ii) the proposed date of deregistration of the aircraft and new state of registry; (iii) confirmation that the mortgage is not be - ing discharged, nor will it be deregistered from the Mortgage Register prior to the aircraft being deregistered; (iv) authority for the aircraft to be deregistered and have the mortgage referenced on the deregistration certificate, along with any filed IDERAs; and (v) an indication of when the mortgage will be • when a Certificate of Airworthiness for Export is required, proof of a completed inspection of the aircraft by a CAACI surveyor. 2.8.4 Duration of Deregistration Process From the CAACI′s perspective, where all parties are co-operating, deregistration can typically be effected in one day once all the documentation is in place. The period for deregistration where there is no co- operation from the parties cannot be estimated. 2.8.5 Aviation Authority’s Assurances See 2.8.4 Duration of Deregistration Process . 2.8.6 Costs, Fees and Taxes Relating to Deregistration Deregistration fees are nominal (currently KYD500/ USD609.76). The fee payable is prescribed by stat - ute, and there is no known precedent for the fee being waived. deregistered from the Mortgage Regis - ter (notarised proof of authority of the mortgagee′s signatory will also be re - quired); and
In addition, the aircraft account must be settled with the CAACI before the aircraft can be deregistered. This amount may or may not be significant, depend - ing on how the accounts have been managed prior to deregistration. 2.8.7 Deregistration Power of Attorney There is no formal legal requirement under Cayman Islands law that, for a deregistration power of attorney to be enforced against a domestic party, it needs to be translated, certified, notarised, legalised or lodged in advance. It should be noted, however, that since the Cape Town Convention came into force in the Cayman Islands on 1 November 2015, pursuant to the CTC Act (as defined in 2.10 Cape Town Convention and Oth- ers ), the CAACI typically accepts IDERAs rather than deregistration powers of attorney. 2.8.8 Documents Required to Enforce Deregistration Power of Attorney See 2.8.1 Deregistering Aircraft in this Jurisdiction and 2.8.3 Required Documentation . 2.8.9 Choice of Laws Governing Deregistration Power of Attorney A deregistration power of attorney does not have to be governed by the laws of the Cayman Islands. 2.8.10 Revocation of a Deregistration Power of Attorney Under Cayman Islands law, a deregistration power of attorney granted to secure an obligation owed, typi - cally to the finance parties, will be irrevocable until that obligation is discharged. 2.8.11 Owner’s/Lessor’s Consent Aircraft registered on the Aircraft Register are usually located and operated outside of the Cayman Islands. See also 2.8.1 Deregistering Aircraft in This Jurisdic- tion , noting that the lessee′s consent is not required for deregistration. 2.8.12 Aircraft Export Permits/Licences See 2.8.1 Deregistering Aircraft in This Jurisdiction and 2.8.3 Required Documentation . The issuance of an export permit/licence will also depend on the requirements of the jurisdiction to which the aircraft is being exported.
100 CHAMBERS.COM
Powered by FlippingBook