GERMANY Law and Practice Contributed by: Konrad Schott, Jan Brinkmann and Johannes Vogel, Freshfields
3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards A final judgment by a court in any member state of the EEA on commercial matters will typically be rec - ognised in Germany pursuant to the Brussels Recast Regulation and the Lugano Convention (as applica - ble). In the absence of specific treaties, a judgment obtained in any other jurisdiction will have to comply with certain standards of due process, and certain prerequisites of the German Civil Procedure Code ( Zivilprozessordnung ) and reciprocity will have to be ensured. An arbitral award will be recognised and enforced by German courts subject to certain restric - tions according to the New York Convention. 3.4.5 Secured Parties’ Right to Take Possession of Aircraft The remedy of self-help is not available in Germany. In case the relevant security grantor is not co-operative, a court order may have to be sought to access the aircraft, the engines or the aircraft documents (with the help of a bailiff ( Gerichtsvollzieher )). 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions For questions of enforcement (outside insolvency proceedings), the competent court will have to be determined pursuant to general rules (eg, linking the place of venue to the debtor’s seat, the place of performance or the location of the asset). By way of exemption thereto, the local court of Braunschweig has exclusive jurisdiction for the enforcement of Ger - man aircraft mortgages. 3.4.7 Summary Judgments or Other Relief Injunctive relief ( einstweilige Verfügung ) can generally be sought to prevent a continuing or threatening viola - tion of the lessor’s rights. Injunctive relief will typically not fast track the objective of the main proceedings – eg, an aircraft may be sequestered and be kept under the custody of a bailiff but will not be handed over to the lessor claiming repossession. There may be exemptions in extraordinary circumstances for ancillary claims (eg, relating to aircraft documents) or where compliance with public law obligations is to be preserved.
3.4.8 Judgments in Foreign Currencies A judgment can be obtained in any currency. A judg - ment for payment of money expressed in a foreign currency may be satisfied in euros at the exchange rate prevailing at the time of payment unless the enforcement court decides that specific performance of the obligation to effect payment in the judgment A secured party is not required to pay taxes in a non- nominal amount in connection with the enforcement of a security agreement/aircraft mortgage per se. 3.4.10 Other Relevant Issues Enforcement of a German aircraft mortgage can be accelerated by a related submission to immediate enforcement in the form of a notarial deed, thereby saving the need to first obtain a judgment. In practice, enforcement requires close co-ordination with the local court of Braunschweig as additional measures may be necessary to ground the aircraft and facilitate sequestration. Maintenance and storage of the aircraft while it is in the custody of the bailiff should be sup - ported by the creditor. 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft The factual, tax and legal background of each trans - action needs to be assessed on a case-by-case basis to be able to render conclusive advice on the spe - cific legal issues that may arise in connection with a purchase, sale, lease or debt financing of an aircraft registered in Germany or involving a German party. 4.2 Current Legislative Proposals currency has been agreed. 3.4.9 Taxes/Fees Payable As of 1 June 2024, the authors are not aware of any proposed new German legislation specifically addressing transactions concerning a purchase, sale, lease or debt financing of an aircraft registered in Germany or involving a domestic party. Germany has ratified the Luxembourg Rail Protocol under the Cape Town Convention and it came into force in Ger - many on 8 March 2024. However, we do not expect
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