ARMENIA Law and Practice Contributed by: Narine Beglaryan, Arianna Adamyan and Anahit Aloyan, Concern Dialog
3.3.2 Timeframe to Discharge a Lien or Mortgage A distinction should be made between the termination of a pledge as a legal right and its removal from the official register. As a rule, a pledge is automatically terminated when the claim secured by it is fully satis - fied or ceases to exist. However, in order to officially reflect the termination of the mortgage, it is necessary to submit an application for removal from the Arme - nian aircraft register. After submitting the necessary documents, it typically takes up to 15 days for the registry to remove the information about the collateral from its records. 3.3.3 Register of Mortgages and Charges Information regarding the pledge of an aircraft must be submitted to the Armenian aircraft register. Addi - tionally, the pledge may also be recorded in the public registry of secured rights over movable property. Once the pledge is registered in the Armenian aircraft register, the aircraft cannot be deregistered without the written consent of the pledgee. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens The right of retention may arise by virtue of law as described in 3.3.1 Third-Party Liens and by virtue of the court decision: • the arrest may be imposed on the debtor’s prop - erty within the framework of enforcement proceed - ings. 3.3.5 Verification of an Aircraft’s Freedom From Encumbrances The information about the aircraft’s pledge must be registered with the aircraft registry. A prospective buyer may send a formal enquiry to the registry to obtain details of any registered liens on the aircraft. Additionally, the online registry of secured rights over movable property can be accessed. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees A loan or guarantee, which represents in personam obligations, is enforced by initiating legal proceedings
against the relevant debtor or guarantor and seeking a court judgment for payment or specific performance, as applicable. A security assignment is an in rem interest and is usually enforced by the secured party by collecting the assigned claims or, in the case of other rights, by enforcing such rights through a private sale or auction. 3.4.2 Security Trustees’ Enforcement of Their Rights Please refer to 3.2.4 Assignment of Rights to an Air- craft by a Borrower to a Security Trustee . 3.4.3 Application of Foreign Laws Armenian courts are generally required to apply Arme - nian substantive law, except in contractual disputes where the parties have agreed to apply foreign law. However, even when a foreign governing law clause is enforceable, Armenian courts often face practical difficulties in applying foreign law, which can make its use problematic or unfeasible in practice. While foreign law may govern a pledge agreement for an aircraft registered in Armenia, particularly with respect to the rights and obligations of the parties and liability for breach, Armenian law will mandato - rily apply to matters concerning property rights in the aircraft, including their creation, transfer, and termina - tion. Armenian courts will recognise and enforce a final for - eign judgment, provided that the matter does not fall within the exclusive jurisdiction of Armenian courts. 3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards Armenian courts will recognise and enforce the final judgment of a foreign court or an arbitral award with - out re-examining the merits of the case. Under Arme - nian law, the enforcement of foreign judgments is per - mitted not only on the basis of an international treaty, convention, or agreement but also on the principle of reciprocity, which is presumed to exist unless proven otherwise.
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