ARMENIA Law and Practice Contributed by: Narine Beglaryan, Arianna Adamyan and Anahit Aloyan, Concern Dialog
2.7.3 Enforceability of Lease Assignments/ Novations It is not strictly necessary for an aircraft or engine lease assignment, assumption, or novation agreement to be translated, certified, notarised, or legalised to be enforceable against a domestic party. However, such formalities may be required for registration purposes and to be used as evidence in judicial proceedings (see 1.1.2 Enforceability Against Domestic Parties , 1.2.3 Enforceability Against Domestic Parties , 2.3.5 Requirements for a Lease to Be Valid and Registra- ble , and 2.3.8 Requirements for Documents Con- cerning Registration for further details). 2.7.4 Filing/Registration of Lease Assignments/ Novations The aircraft lease assignment or novation can and must be registered if it results in a change of owner - ship or operator of a registered aircraft. In such cas - es, notification to the Committee is mandatory, and corresponding filings are required to effectuate the registration. Under Armenian law, the registration of an aircraft or engine lease assignment, assumption, or novation is not constitutive in nature; that is, legal rights under such agreements arise from the contract itself, not from registration. However, where the under - lying transaction involves a change in ownership or operational rights, registration becomes a practical prerequisite for regulatory recognition and enforce - ment. In particular, following a change in the owner or opera - tor of an aircraft, the Committee issues a new reg - istration certificate, and the prior certificate must be returned. Hence, registration is declarative and thus, its absence effectively hinders the enforcement of rights arising from the assignment or novation before the aviation authority. • As for the formalities required for registration see 1.2.4 Registration, Filing and/or Consent From Government Entities and 2.3.8 Requirements for Documents Concerning Registration . • As for government approvals, Armenian law does not generally require prior consent from any gov - ernment body for the execution or delivery of an aircraft or engine lease assignment or novation (for possible exceptions and practical considerations,
see 1.2.4 Registration, Filing and/or Consent From Government Entities ). 2.7.5 Taxes/Duties Payable on Assignment/ Novation An agreement involving the assignment of a claim or a novation may give rise to tax liabilities, depending on the specific terms of the transaction. If a party derives a profit (for example, a positive difference between the value of the claim or obligation assigned or novated and the consideration received or paid), such profit is treated as taxable income. The mere presence or exchange of the original or a copy of such an agreement within the jurisdiction of Armenia, whether in physical or electronic form, does not, in itself, affect taxation. 2.7.6 Recognition of Transfer of Ownership Interests When the ownership interest of an entity, or the benefi - cial interest in a trust, owning an aircraft is transferred, no filing with the Committee is required, because the entity will remain the registered legal owner of the air - craft. However, consideration in the light of competi - tion law as outlined in 1.2.4 Registration, Filing and/ or Consent From Government Entities may apply. 2.8 Aircraft Deregistration and Export 2.8.1 Deregistering Aircraft in This Jurisdiction In Armenia, an aircraft may be deregistered from the State Register of Civil Aircraft by its owner or the owner’s authorised representative, who must submit an official application to the Civil Aviation Committee. Deregistration may occur voluntarily at the owner’s request, including for export purposes, or ex officio in cases where the aircraft is dismantled, permanently withdrawn from use, or has been without a certificate of airworthiness for over three years. To achieve deregistration, the owner must submit the aircraft’s registration certificate and its certificate of airworthiness. If the aircraft is to be exported and reg - istered in another country, the application must also include a request for a certificate of deregistration, as well as, if necessary, a permit for flight and an export certificate of airworthiness to facilitate the ferrying of the aircraft. Once the aircraft is registered in a foreign
27
CHAMBERS.COM
Powered by FlippingBook