MALTA Law and Practice Contributed by: Joseph Ghio, Fenech & Fenech Advocates
2.7.2 Assignment/Novation of Leases Under Foreign Laws Validity of an Assignment or Novation Agreement Governed by New York or English Law A New York or English law-governed assignment and assumption agreement or novation agreement (or deed) will be held valid by a Maltese court pursuant to and subject to the Rome I Regulation. Lessee’s Consent for Assignment or Novation of Lessor’s Rights With regards to an assignment governed by Maltese law, the lessee’s consent is not required. The lessee must acknowledge the assignment in writing unless they are formally notified of the assignment by judicial letter. With regards to novation, the lessee’s consent would be required if the novation were governed by Maltese law. Mandatory Terms Required to Be Included in an Assignment or Novation Agreement Certain mandatory terms must be included in an assignment governed by Maltese law. For instance, the assignor is not answerable for the solvency, whether present or future, of the debtor unless they have expressly bound themselves thereto. In a novation governed by Maltese law, no manda - tory terms are required, but novation is not to be presumed; the intention to effect it must be clearly apparent. 2.7.3 Enforceability of Lease Assignments/ Novations If executed outside of Malta, it is advisable for an aircraft and/or engine lease agreement and assump - tion/novation to be certified, notarised or legalised to be enforceable against a domestic party and to be accompanied by a certified translation if the agree - ment is not in English or Maltese.
2.7.4 Filing/Registration of Lease Assignments/ Novations Filing or Registration of an Aircraft and/or Engine Lease Assignment and Assumption/Novation An aircraft and/or engine lease assignment and assumption/novation does not have to be registered or filed in the Register. However, the registrant of the aircraft is obliged to inform the Director General in writing of any change in the particulars which were furnished to the Director General upon application being made for the registration of the aircraft or the title thereto or the termination of the operator’s tem - porary title. Failure to give notice constitutes an administrative offence under the Act, and the Authority may: • issue a warning in writing to such person; or • impose an administrative penalty on such person. Requirement for Government Applications or Consent An aircraft and/or engine lease assignment and assumption/novation is not subject to any consent from any government entity, nor are any government applications or consents required as a prerequisite to the execution and delivery of an aircraft and/or engine lease assignment and assumption/novation in relation to an aircraft registered domestically. 2.7.5 Taxes/Duties Payable on Assignment/ Novation No taxes/duties are payable in respect of such assign - ment and assumption/novation agreement, or as a consequence of an original or copy being brought into Malta either physically or electronically. 2.7.6 Recognition of Transfer of Ownership Interests Malta would not regard a transfer of ownership inter - ests as tantamount to a transfer of the legal title to the aircraft as this can only occur through a sale/purchase agreement as specified in 1.2.1 Transferring Title .
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