CHAD Law and Practice Contributed by: Claudy Monja and Felana Ranaivoson, John W Ffooks & Co
and is not subject to any taxes as a result of its being a party to, or its enforcement of, a security assignment. 3.2.14 Perfection of Domestic Law Mortgages A mortgage over an aircraft or engine would be per - fected when it complies with the provisions of the Chadian Civil Aviation Code and is registered with the ADAC. 3.2.15 Differences Between Security Over Aircraft and Spare Engines Securities over aircraft are expressly provided under Chadian law (eg, by a mortgage). They should be reg - istered with the ADAC. Securities can also be taken over spare engines. The Chadian Aviation Code includes spare engines (and other parts) as eligible for aircraft mortgages, provided they are individually identified and listed in an inven - tory annexed to the registered document. The mortgage must also be registered with the ADAC, and appropriate on-site public notice must be given. Therefore, while the security is similar in form (a mort - gage), the process includes additional requirements specific to spare parts. 3.2.16 Form and Perfection of Security Over Bank Accounts Security over a bank account in Chad is typically cre - ated in the form of a pledge of monetary claims ( nan- tissement de créance ), in accordance with the Uniform Act on Securities. The pledge must be in writing and is perfected by registration with the tax authorities and the RCCM. Note that in practice, the bank maintaining the account may also need to be notified of the pledge. 3.3 Liens 3.3.1 Third-Party Liens The Uniform Act on Securities does not set forth any specific provisions on liens. However, the closest con - cepts under Chadian law are the retaining right and the possessory pledge.
The retaining right is the right of a creditor to retain in its possession a debtor’s asset in an event of default and until full payment of the debt. This is applicable to movable assets and properties. Note that the retaining right is not subject to any agreement or registration formalities in order to be enforceable. The creditor’s security is materialised by its right to retain in its pos - session the asset that is the object of the dispute. For example, an aircraft maintenance service company is entitled to retain the aircraft in its possession if the aircraft operator fails to pay the maintenance fees. 3.3.2 Timeframe to Discharge a Lien or Mortgage There is no specific timeframe to carry out the dis - charge of a lien or mortgage over an aircraft. As administrative delays are common in Chad, the aver - age timeframe may be up to six months. 3.3.3 Register of Mortgages and Charges The mortgage should be registered on the ADAC’s register. The interests of an aircraft mortgagee or security trustee may be noted on the Aircraft Register. This constitutes evidence of the existence of the right over the aircraft as well as a public notice warning third parties of the existence of the rights of the aircraft mortgagee or security trustee. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens See 3.3.1 Third-Party Liens for information about the retaining right. 3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser of an aircraft should verify with the Aircraft Register that the aircraft is free of encum - brances. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees There is no specific provision on this under local law. 3.4.2 Security Trustees’ Enforcement of Their Rights There is no specific provision on this under local law.
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