EGYPT Law and Practice Contributed by: Sherif El Hosseny, Malak El Amiry and Farida Degheidy, Matouk Bassiouny & Hennawy
• entering into contracts with foreign investors or signing any contracts that include a mandate to resort to international arbitration, or making any modification in these contracts, or taking any action that involves terminating those contracts; or • taking any remedy or procedure in relation to arbi - tration. 2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation Egypt recognises the concepts of both contractual assignment and novation. 2.7.2 Assignment/Novation of Leases Under Foreign Laws Both English and New York law assignments and novations would be held valid. It is recommended that perfection of such rights under Egyptian law is to be taken into consideration. 2.7.3 Enforceability of Lease Assignments/ Novations There is no need for an aircraft and/or engine lease assignment and novation to be translated unless pre - sented to an Egyptian court. It is recommended that perfection of such rights under Egyptian law is to be taken into consideration and reflected in such docu - ments. Please see 2.3.4 Registration of Leases With the Domestic Aircraft Registry . An engine lease novation or assignment cannot be filed as previously explained. 2.7.4 Filing/Registration of Lease Assignments/ Novations An aircraft lease assignment and novation shall be registered or filed with the ECAA. The formalities for such action follow the same for - malities reflected in the answers to section 2.3.4 Registration of Leases With the Domestic Aircraft Registry . There are no governmental consents but an applica - tion to file the same must be filed with the ECAA. The ECAA must review said documents before filing.
Engines’ related documents do not get filed with the ECAA so there is no obligation to file them anywhere. Nevertheless, it is envisaged that the relevant Egyp - tian laws may be amended to accommodate transac - tions, such as filing of sales, leases or mortgages over engines with the ECAA upon the full implementation of the Cape Town Convention. 2.7.5 Taxes/Duties Payable on Assignment/ Novation Please see 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease and 2.3.6 Taxes/Duties Payable for Registering a Lease as the same process applies. 2.7.6 Recognition of Transfer of Ownership Interests There is no impact on the filing process before the ECAA if the ownership interest of an entity owning an aircraft is transferred with the legal title to the asset remaining with that entity. If the aircraft ownership is transferred to another own - er, then the ECAA will require evidence of transfer of title through a notarised and legalised bill of sale up to the level of the Egyptian Consulate/Embassy in the country of issuance or filing of the bill of sale with the ECAA. It will also be obligatory to file a lease amend - ment or novation to reflect such change. According - ly, the aircraft registration certificate will need to be changed. 2.8 Aircraft Deregistration and Export 2.8.1 Deregistering Aircraft in This Jurisdiction A beneficiary, such as a security trustee or owner can deregister an aircraft under a DPOA or IDERA if such DPOA or IDERA is registered with the ECAA. An application is submitted to the ECAA with a copy of the filed DPOA or is presented to the ECAA along with a copy of the notice of default and the grounding notice as evidence for lease termination. The ECAA reviews same and contacts all relevant parties prior to the issuance of a deregistration certificate. In the event of a mutually consented termination, an early termination agreement needs to be filed with the ECAA. The same process identified in 2.1.5 Taxes/
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