ISRAEL Law and Practice Contributed by: Charles Gottlieb and Osnat Issan, Gottlieb Gera & Co Advocates
2.6.10 Mandatory Notice Periods To the extent that notice periods are contractually agreed by the parties, such provisions are typically respected by the courts. To the extent that notice periods are not provided contractually, the courts are likely to impute a reasonable notice period under the circumstances. 2.6.11 Lessees’ Entitlement to Claim Immunity A lessee that is a party to a commercial transaction is not entitled to sovereign immunity under Israeli law. For non-commercial transactions, sovereign immunity may be waived. 2.6.12 Enforcement of Foreign Arbitral Decisions The State of Israel is party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) and adopted the convention into local law through the New York Con - vention Implementation Regulations (Foreign Arbi - tration) 1978. The regulations provide that if another international treaty to which Israel is party applies to a certain arbitration process, the regulations would not apply to such arbitration. Israeli courts will generally recognise and enforce an arbitral decision to which the 1958 Convention applies. However, according to the implementation regulations, the court may postpone the proceed - ings or require the posting of bail in the event that a party applies for a revocation or suspension of judg - ment with the competent authority of the jurisdiction in which the arbitration took place (or in accordance Israeli legislation and jurisprudence emphasise equita - ble considerations such as the doctrine of good faith and principles of fairness and reasonability. Such con - siderations may have a significant impact on the opti - mal course of action in the performance of a contract and in the enforcement of contractual rights. 2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation The concepts of contractual assignment and nova - tion are recognised under Israeli law. The concept with the governing law thereof). 2.6.13 Other Relevant Issues
of assignment is more prevalent in Israeli legislation, case law, and practice. 2.7.2 Assignment/Novation of Leases Under Foreign Laws The Assignment of Obligations Law 1969 provides that rights under an agreement such as an aircraft lease may be freely assigned without the debtor’s consent, except to the extent that the transferability of such rights has been limited by the nature of the right, by law or by a contractual provision. An assign - ment of such rights under a New York or English law- governed document will generally be recognised by Israeli courts and deemed enforceable in Israel. The Assignment of Obligations Law further provides that an obligation or liability may be assigned, if such assignment was agreed upon by the creditor, unless the transferability of the obligation or liability has been restricted by law. 2.7.3 Enforceability of Lease Assignments/ Novations For the enforceability of commercial agreements in Israeli court proceedings, see 1.2.3 Enforceability Against Domestic Parties . 2.7.4 Filing/Registration of Lease Assignments/ Novations Aircraft and/or engine lease assignment and assump - tion agreements and/or novations are not registered with the Registry. To the extent that such agree - ments trigger a change of ownership of an aircraft, the change of ownership will need to be approved by the Minister of Transportation (whose authority was delegated to the Director General of the Israel Civil Aviation Authority), as set out in 2.3.4 Registration of Leases With the Domestic Aircraft Registry . 2.7.5 Taxes/Duties Payable on Assignment/ Novation Israel currently imposes no taxes or duties on the assignment of aircraft leases.
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