GREECE Law and Practice Contributed by: Betty Smyrniou, Bahas, Gramatidis & Partners
(except for the registration of the Greek mortgage). Such an assignment does not need to be registered. Cape Town filings are not provided. A Greek law mortgage is a domestic law security instrument and is filed with the HCAA, with a nominal cost of EUR2,000. An English or New York law-governed security assign - ment or a domestic law security instrument are not registered domestically. 3.2.10 Transfer of Security Interests Over Aircraft/ Engines The transfer of security interests over an aircraft and/ or engines is recognised. If it concerns a mortgage, it has to be registered in the Greek aircraft mortgage register. 3.2.11 Effect of Changes in the Identity of Secured Parties If the identity of the secured parties under a security assignment changes after its execution, the security interests are not jeopardised as long as the relevant filings are made in relation to the mortgage. 3.2.9 Domestic Registration of Security Assignments Governed by Foreign Laws The effects of any change in the identity of a secured party under a security assignment governed by for - eign law depend on the specific arrangements made with regard to such security interest – eg, whether a security trustee concept has been introduced or not. The transfer of a mortgagee’s position under a Greek aircraft mortgage requires registration in the Greek aircraft mortgage register. 3.2.12 “Parallel Debt” Structures Parallel debt structures are used domestically. 3.2.13 Effect of Security Assignments on Residence of Secured Parties A secured party under a security assignment would not be deemed to be resident, domiciled, carrying on business or subject to any taxes as a result of its
being a party to – or its enforcement of – such security assignment. 3.2.14 Perfection of Domestic Law Mortgages A domestic law mortgage over an aircraft or engine can be perfected. It would take effect upon its regis - tration in the Greek aircraft mortgage register. 3.2.15 Differences Between Security Over Aircraft and Spare Engines The mortgage over an aircraft is different from the mortgage over spare engines. Spare engines are separately registered and a mortgage can be regis - tered on them. 3.2.16 Form and Perfection of Security Over Bank Accounts An account pledge is the granting of security over a bank account (such as a lease receivables account) and it requires, among other things, a notification to the account bank. 3.3 Liens 3.3.1 Third-Party Liens A lien can be taken over an aircraft. The aforemen - tioned liens are extinguished: • on the aircraft’s sale in a public auction; or • three months after the claim arose, unless they are registered in the mortgage book following agree - ment or exercise of a lawsuit. Fleet liens could be applicable for specific liens pro - vided by Greek law, such as handler’s fees and HCAA charges, and the aircraft could be grounded. The third party could detain the aircraft and enforce the lien. 3.3.2 Timeframe to Discharge a Lien or Mortgage A mortgage can be swiftly deregistered – typically within a week, provided there are notarised and apos - tilled powers of attorney from both the mortgagor and mortgagee. The lien’s discharge and the associated timeline depend on whether the lien is contested. If it is unchal - lenged and the relevant obligation is paid to the third party (such as the handling agent), the lien can be discharged promptly – usually within a week.
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