FRANCE Law and Practice Contributed by: Yves Hénaff d’Estrées, HENAFF D’ESTREES
3.3.2 Timeframe to Discharge a Lien or Mortgage The discharge of a lien or mortgage over an aircraft may be made in less than a day. 3.3.3 Register of Mortgages and Charges Mortgages are registered for ten years in the aircraft register. There is no registry for airport or navigation charges. The mortgage registration gives the mort - gagee a preferential right of payment out of a judicial sale of the debtor’s aircraft. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens There are no statutory rights or non-consensual pref - erential liens on a fleet-wide basis. 3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser of an aircraft should search the aircraft register to verify that an aircraft is free of mort - gages. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees There are no significant differences in enforcing a security assignment as opposed to a loan or guaran - tee. In all cases, any difficulty encountered in enforc - ing the agreement should be referred to the court of competent jurisdiction. 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, that security trustee may enforce its rights under the security assignment pursuant only to a notice and acknowledgement executed by that les - sor and the relevant lessee, respectively, in connection with such security assignment. 3.4.3 Application of Foreign Laws Generally, the French courts will uphold a foreign law as the governing law of a finance or security docu - ment, and submission to a foreign jurisdiction.
3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards French courts will recognise and enforce the final judgment of a foreign court or an arbitral award, with - out re-examining the merits of the case. 3.4.5 Secured Parties’ Right to Take Possession of Aircraft A secured party cannot take physical possession of an aircraft to enforce a security agreement/aircraft mortgage without the lessee’s or operator’s consent. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions No French courts have special competent jurisdic - tion to decide enforcement actions under a security agreement/aircraft mortgage. In commercial aviation matters, the cases are always adjudicated by com - mercial courts. 3.4.7 Summary Judgments or Other Relief A secured party may obtain a summary judgment, equitable or other injunctive relief pending final res - olution of judicial proceedings to enforce a security agreement. It is not generally necessary to give a guarantee or post a bond in connection with such summary judgment. 3.4.8 Judgments in Foreign Currencies It is possible for a secured party under a security agreement to obtain a judgment in a foreign currency. 3.4.9 Taxes/Fees Payable A secured party will generally not be required to pay taxes or fees in a non-nominal amount in connection with the enforcement of a security agreement. 3.4.10 Other Relevant Issues In order to assess its risk, it is important for a lender to have a clear view of the economic and financial health of a debtor. If the debtor is a French company, a com - plete search of the corporate and financial data of that company must be made by the lender’s local counsel on the French register of commerce and companies.
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