MALAYSIA Law and Practice Contributed by: Shelina Razaly Wahi and Vincent Chan Siew Onn, Abdullah Chan & Co
2.7.3 Enforceability of Lease Assignments/ Novations There are no requirements for a lease assignment or assumption/novation to be notarised, certified or legalised to be enforceable against a domestic party. Stamping is required if a lessor/financier intends to enforce a lease assignment or assumption/novation against a domestic party. If the assignment or assumption/novation or any transaction documents contains a power of attorney, (i) the execution of the power of attorney must be authenticated by, inter alia, an advocate and solicitor of the High Court of Malaya, a commissioner for oaths or a notary public; and (ii) the power of attorney must be registered accordingly. 2.7.4 Filing/Registration of Lease Assignments/ Novations If an aircraft lease assignment or assumption/nova - tion results in a change in the details recorded at the Aircraft Register, then the owner of the aircraft needs to make the relevant filing with CAAM in order to reflect those changes accordingly. The changes may be affected by filing in the relevant form with CAAM. No consent is required from any government entity in respect of such changes. If an aircraft and/or engine lease assignment or assumption/novation results in a change in the secu - rity structure of such lease, then the lessor/financi - er will need to register the applicable new security accordingly. There are no government applications or consents required as a prerequisite to the execution and deliv - ery of an aircraft and/or engine lease assignment and assumption/novation in relation to an aircraft regis - tered domestically. 2.7.5 Taxes/Duties Payable on Assignment/ Novation Stamp duty is payable in respect of such assignment and assumption/novation agreement, within 30 days of execution in Malaysia, or within 30 days of a copy being brought into Malaysia, either physically or by electronic means.
or other immunity from suit by agreeing contractually to the same. 2.6.12 Enforcement of Foreign Arbitral Decisions Malaysia has adopted the New York Convention. The provisions on recognition and enforcement of an arbi - tral award have been incorporated in the Malaysian Arbitration Act 2005. An award made in connection with a domestic arbitration or an award from a foreign state which is a party to the New York Convention shall be recognised as binding and shall be enforce - able by entry as a judgment in terms of the award or by action. 2.6.13 Other Relevant Issues There are no other relevant issues that a lessor should be aware of in relation to the enforcement of its rights. 2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation In general, Malaysia recognises the concepts of con - tractual assignment and novation. 2.7.2 Assignment/Novation of Leases Under Foreign Laws A legal assignment is valid pursuant to the Civil Law Act 1956 if: • the debt or chose in action is one that is existing; • the assignment is in writing under the hand of the assignor; • the assignment is absolute and not by way of charge only; and • there is express written notice of the assignment to the obligor. A novation is valid if: • there is an intention to novate; • the novation may be expressed or may be implied from conduct; • there is consideration; and • there is consent of the parties concerned. Unlike assignment, there is no requirement of notice in writing of the novation being given for the novation to have effect.
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