MALTA Law and Practice Contributed by: Joseph Ghio, Fenech & Fenech Advocates
2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register The Director General is under an obligation to record the full name, address, email address and telephone number of the natural or legal persons having owner - ship rights in the aircraft, the ownership rights in the aircraft when held by a trustee as well as the details of any international interests registered on the aircraft in the international registry established by virtue of the Convention (the “International Registry”) and subse - quently all transactions relating thereto. According to the Act, the Director General will also note in the Register, if requested to do so by the reg - istrant or by any other interested person, the lessor rights relating to the aircraft or an engine when the lessor is a person different from the owner. Where information is inserted in the Register by means of a record or a notation, that information becomes public and is considered to be within the knowledge of third parties. 2.3.2 Registration If the Owner Is Different From the Operator The Register is an operator register. Thus, the aircraft may be registered in Malta in the name of the aircraft operator even if the operator is not also the owner. However, in the case of an owner who is not also the operator, such owner may only register the aircraft if the aircraft is under construction or is temporarily not being operated or managed. 2.3.3 Aircraft/Engine-Specific Registers There is no specific register for leases concerning air - craft or engines. 2.3.4 Registration of Leases With the Domestic Aircraft Registry Registration of Lease and Lessor’s Interest in the Register A lease agreement is not required to be registered in the Register. However, the Director General is required to record, among other things, the full name, address, email address and telephone number of the natural or legal persons under whose name the aircraft is registered and in what capacity the registrant has
2.1.6 Licensing/Qualification of Lessors A lessor does not have to be licensed or otherwise qualified in Malta to do business with a Maltese les - see. 2.2 Lease Terms 2.2.1 Mandatory Terms for Leases Governed by English or New York Law There are no mandatory terms required to be in a lease (or ancillary documents thereto) governed by English or New York law that would not typically already be included. However, where the lease agreement is required to be submitted for the purpose of registra - tion of the aircraft (if the aircraft is leased), the Director General (unless an exemption is granted) will require that the agreement refers only to Maltese registration marks, which can be reserved in advance of delivery of the aircraft to the lessee. 2.2.2 Tax and Withholding Gross-Up Provisions Tax and other withholding gross-up provisions are permissible and enforceable in Malta. 2.2.3 Parts Installed or Replaced After a Lease’s Execution A lease agreement providing that parts of an aircraft or engine installed or replaced after its execution will be subject to the terms thereof is valid and binding without requiring any further steps or formalities. 2.2.4 Risk of Title Annexation Under Maltese law, where two items belonging to dif - ferent owners have been united in such a manner as to form a whole but can nevertheless be separated without considerable damage to either of them, each of the owners shall retain the ownership of their own item and shall be entitled to demand separation. Fur - thermore, under the Act, where an engine has been attached to an airframe that is not also owned by the airframe owner, each of the owners shall retain the ownership of their respective item and the engine shall not accede to the airframe. 2.2.5 Recognition of the Concepts of Trust/Trustee The concept of a trust and the role of an owner trustee under a lease is recognised under Maltese law.
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