LITHUANIA Law and Practice Contributed by: Gintautas Šulija and Eduard Plešak, Šulija & Partners
tracts and Restrictions of Rights can be made to verify existence of any mortgages over an aircraft. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees Security assignment would be enforced in the same way as a loan or guarantee. However, a local law mort - gage should be enforced in out-of-court proceedings by making an application to a public notary. 3.4.2 Security Trustees’ Enforcement of Their Rights The concept of trust and security trustee is generally not recognised in Lithuania. If a security trustee is not a creditor, its rights to enforce a security can be jeop - ardised. In practice, parallel debt arrangements are agreed in contractual documentation to minimise the risks related with the enforcement procedures. 3.4.3 Application of Foreign Laws The choice of foreign law as the governing law of a finance or security document will be upheld in any action in the courts of Lithuania, provided that: • this choice is made expressly and clearly demon - strated by the terms of the contract and circum - stances of the case; and • overriding mandatory provisions of the Lithuanian laws can be applicable – in particular, the aircraft shall be deemed as immovable property in Lithu - ania pursuant to the provisions of the Civil Code 2001 and the law states that ownership right and other rights in rem in an immovable property will be governed by the law of the state where the asset was situated at the moment of change of its legal status (thus, in the event the title of the aircraft changed or security over aircraft was created when the aircraft was registered in Lithuania, the over - riding Lithuanian law requirements pertaining to the ownership right and other rights in rem in the aircraft may be applicable). The submission to a foreign jurisdiction will be upheld in any action in the courts of Lithuania. However, in the absence of entirely consistent case law on this issue, the authors cannot completely
exclude the likelihood that Lithuanian courts may be of the opinion that by reason of Lithuanian law an aircraft registered in Lithuania will be treated as an immovable property for civil law purposes. Therefore, claims relating to in rem rights – including the usage of the aircraft – should be subject to the exclusive jurisdiction of the Lithuanian courts. 3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards See 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards . 3.4.5 Secured Parties’ Right to Take Possession of Aircraft Repossession of the aircraft must be exercised peace - fully. If an operator does not voluntarily surrender the aircraft, the secured party would not be entitled to enforce the repossession by force. The use of self- help remedies is very limited under Lithuanian law and is allowed only when expressly permitted by law. The secured party shall be permitted to repossess the air - craft without the co-operation of lessee or operator when it is specifically authorised to do so by the court. An enforceable court order will be enforced by a bailiff, with the assistance of the police, if necessary. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions See 2.6.3 Specific Courts for Aviation Disputes . 3.4.7 Summary Judgments or Other Relief As mentioned in 2.6.4 Summary Judgment or Other Relief , summary judgments can be obtained for mon - etary claims only – although there are several proce - dural rules that need to be complied with. Specifically, the debtor should not be established in a foreign juris - diction, and there should be no unfulfilled obligations of the lessor for which remuneration is due and the debtor requests such obligations to be fulfilled. An injunction can be issued by the court pending final resolution of proceedings if the secured party man - ages to plausibly substantiate its claim and proves that, without the injunction, the execution of the court decision may become difficult or impossible.
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