NIGERIA Law and Practice Contributed by: Tamuno Atekebo, Chinasa Unaegbunam, Naomi Kabowei and Favour Osayuwamen, Streamsowers & Köhn
4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft Currently, there are no material court judgments that impact the purchase, sale, lease or debt finance of an aircraft registered domestically and/or involving a domestic party. 4.2 Current Legislative Proposals The NCAA released an Advisory Circular outlining the procedure for recording an IDERA and de-registration of an aircraft under an IDERA. The NCAA will only accept and record an IDERA if: • it is submitted in writing to the NCAA substantially in the form set out in the Protocol to the Conven - tion on International Interest in Mobile Equipment on Matters Specific to Aircraft Equipment 2001 (the “Protocol”); • it identifies the aircraft that is registered or to be registered in the Nigeria Civil Aircraft Register; and • it is signed by an applicant.
applicant in such a case to provide an undertaking as to damages – that is, to show that the applicant will be willing to pay damages if in the end such an order ought not to have been made. It is not mandatory that the applicant post a bond or provide a guarantee – although a court may make an order that such a bond or guarantee be provided. A secured party can also obtain summary judgments where the claim is for a certain sum and the facts in support of the claim are not likely to be contested. 3.4.8 Judgments in Foreign Currencies A secured party under a security agreement or aircraft mortgage can obtain a judgment in a foreign currency in Nigeria. The sum secured by the security agreement and to be recovered in the claim should, however, be denominated in the foreign currency. 3.4.9 Taxes/Fees Payable Fees may be applicable in connection with the enforcement of a security agreement or aircraft mort - gage. These fees could include court filing fees or administrative fees. 3.4.10 Other Relevant Issues Lenders should consider potential challenges in enforcement, such as potential insolvency proceed - ings by the borrower.
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