EGYPT Law and Practice Contributed by: Sherif El Hosseny, Malak El Amiry and Farida Degheidy, Matouk Bassiouny & Hennawy
3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees There are certain relevant differences in enforcing a security as opposed to a loan or a guarantee. The security assignment can be perfected through fil - ing with the ECAA while neither loans nor guarantees are perfected with any. The priority under a security assignment can be main - tained while under a guarantee or loan there are no priorities since they are not filed anywhere unless the loan is secured with collateral over certain assets that are perfected. If enforcement is pursued under a loan or a guarantee, it will only require the payment of certain amounts that have to be rendered after obtaining a court order or an arbitral award, while under a security assignment, the debtor should be paying the necessary amounts to the assignee (unless the assignor revokes its instruc - tions and the debtor abides by such new instructions). 3.4.2 Security Trustees’ Enforcement of Their Rights If, under a security assignment, security is granted to a security trustee by a lessor in respect of its rights under an aircraft lease, the security trustee can enforce its rights under the security assignment pursuant only to a notice and acknowledgement, executed by that lessor and the relevant lessee respectively, provided that the assignment is perfected pursuant to the rel - evant Egyptian laws through having an established date. 3.4.3 Application of Foreign Laws See 2.1.2 Application of Foreign Laws , 2.6.5 Domes- tic Courts’ Approach to Foreign Laws and Judg- ments , 2.7.2 Assignment/Novation of Leases Under Foreign Laws and 3.2.6 Choice of Foreign Law. 3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards See 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards .
3.4.5 Secured Parties’ Right to Take Possession of Aircraft See 2.6.2 Lessor Taking Possession of the Aircraft , 2.8.2 Lessee’s/Operator’s Consent , and 2.8.11 Own- er’s/Lessor’s Consent . 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions See 2.6.3 Specific Courts for Aviation Disputes . 3.4.7 Summary Judgments or Other Relief See 2.6.4 Summary Judgment or Other Relief . There are no bonds, security or cash deposits that would be required. 3.4.8 Judgments in Foreign Currencies See 2.6.7 Judgments in Foreign Currencies . 3.4.9 Taxes/Fees Payable See 2.6.9 Lessor’s Requirement to Pay Taxes/Fees . 3.4.10 Other Relevant Issues The judicial process needs to be more dynamic to accommodate and cope with the fast changes in the industry to encourage more lenders and lessors to invest in Egypt. 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft There are no relevant material issues or material court judgments relevant to the sale, lease or finance of air - craft or engines not already covered in this chapter. 4.2 Current Legislative Proposals Egypt is expected to witness new developments to accommodate the Egyptian ratification of the Cape Town Convention and the Aircraft Protocol, along with their relevant declarations. The Cape Town Convention and Aircraft Protocol are under serious tests in Egypt that may shape their future enforceability.
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