CÔTE D’IVOIRE Law and Practice Contributed by: Samirah Mogony and Mialy Solofohery, John W Ffooks & Co
3.1.6 Negative Pledges Parties can agree to include provisions on negative pledges. However, such provisions are not mentioned in the registry of the competent authority when regis - tering the pledge. 3.1.7 Intercreditor Arrangements The relevant local laws do not provide for restrictions on intercreditor arrangements. 3.1.8 Syndicated Loans The concept of agency and the role of an agent under a syndicated loan agreement are recognised. 3.1.9 Debt Subordination The authors are not aware of any debt subordination concept under Ivorian law. 3.1.10 Transfer/Assignment of Debts Under Foreign Laws The transfer or assignment of all or part of an out - standing debt under an English or New York-governed Usury laws in Côte d’Ivoire are governed by Law No 2014-810 and regional UEMOA regulations, such as Decision No CM/UMOA/011/06/2013, which cap effective interest rates on loans. The usury ceiling is 15% per annum for banks and 24% for non-bank - ing financial institutions. The effective interest rates include all loan-related costs (fees, commissions and intermediary charges), excluding taxes. loan is permissible and recognised. 3.1.11 Usury/Interest Limitation Laws These limits apply to any loan governed by Ivorian law or enforced locally, including aviation finance transac - tions involving borrowers or security interests. For cross-border aircraft financing, foreign law struc - tures may reduce risk, but local enforcement (eg, repossession or registration) could still bring usury limits into consideration. 3.2 Security 3.2.1 Typical Forms of Security and Recourse The typical form of security and recourse that would be granted in an aviation finance transaction domesti - cally is a mortgage.
3.2.2 Types of Security Not Available A mortgage in the name of the owner of the aircraft covers the airframe, the engines, the propellers, the on-board equipment and all parts intended to be used on a continuous basis for the service of the aircraft, whether they are part of the aircraft or temporarily separated from it. 3.2.3 Trust/Trustee Concepts The concept of a security agent is recognised in Côte d’Ivoire. 3.2.4 Assignment of Rights to an Aircraft by a Borrower to a Security Trustee There are no legal provisions that would prevent a bor - rower from assigning its rights to an aircraft or under an aircraft lease (including in relation to insurances) to a security trustee, pursuant to a security assignment or a mortgage. 3.2.5 Assignment of Rights and Benefits Without Attendant Obligations It is possible to assign the rights and benefits only, without also assigning the attendant obligations of the The OHADA Uniform Act organising securities (the “Uniform Act on Securities”) provides a list of securi - ties that can be taken as a guarantee of loans. The security set forth therein must be governed by the act. 3.2.7 Formalities/Mandatory Terms to Create and Perfect Security Assignments A security assignment needs to be registered with the RCCM in order to be enforceable against third par - ties. Security assignments should also be drafted and executed in French. 3.2.8 Domestic Law Security Instruments See 3.2.7 Formalities/Mandatory Terms to Create and Perfect Security Assignments . lessor, under an aircraft lease. 3.2.6 Choice of Foreign Law
3.2.9 Domestic Registration of Security Assignments Governed by Foreign Laws
A security assignment needs to be registered with the RCCM in order to be enforceable against third parties.
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