MALTA Law and Practice Contributed by: Joseph Ghio, Fenech & Fenech Advocates
3.4.2 Security Trustees’ Enforcement of Their Rights As a general rule, an assignee can only exercise the rights assigned to them after due notice of the assign - ment has been given to the debtor by means of a judicial act. However, where an assignment is made by way of security, there is no requirement for notice to be given by judicial act and any writing, including Domestic courts will uphold a foreign law as the gov - erning law of a finance or security document pursuant and subject to the Rome I Regulation and the submis - sion to a foreign jurisdiction pursuant and subject to the Brussels Recast Regulation. 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 by electronic means, will suffice. 3.4.3 Application of Foreign Laws A secured party should be able to take physical pos - session of the aircraft to enforce a security agreement/ aircraft mortgage without the lessee’s or operator’s consent where this was specifically provided in the security agreement/aircraft mortgage and/or where a recorded IDERA or PoA issued in their favour by the registrant is in place and the necessary steps outlined in 2.8.1 Deregistering Aircraft in This Jurisdiction have been followed. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions Enforcement action disputes would fall within the competence of the Civil Courts.
3.4.7 Summary Judgments or Other Relief See 2.6.4 Summary Judgment or Other Relief . 3.4.8 Judgments in Foreign Currencies See 2.6.7 Judgments in Foreign Currencies . 3.4.9 Taxes/Fees Payable In enforcing a security arrangement/aircraft mortgage, a secured party is required to pay judicial costs which are generally determined based on the value of the claim. No taxes related to such an enforcement are due. 3.4.10 Other Relevant Issues Lenders should be aware that the special privileges listed in Article 42 of the Act rank in preference to all other claims whether they be secured by a duly regis - tered mortgage, international interest or a recognised foreign mortgage. 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft The answers provided throughout this guide reflect recent amendments to the Act and various related legislation introduced through Act No XXXVII of 2021 entitled “An Act to Amend Various Laws relating to Aircraft Registration”, which came into force on 6 July 2021, the enactment of the PIA and the enactment, on 1 January 2024, of a new Air Navigation Act as Chap - ter 641 of the Laws of Malta, designed to modernise and consolidate the earlier legal framework, replac - ing the older Civil Aviation (Air Operators’ Certificate) Act, the Air Navigation Order and the Civil Aviation (Air Transport Licensing) (Fees) Regulations. See 2.6.13 Other Relevant Issues . 4.2 Current Legislative Proposals
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