PANAMA Law and Practice Contributed by: María de Lourdes Marengo and Joaquín De Obarrio, Patton Moreno & Asvat
Likewise, it declares that none of the provisions of the Convention shall affect the right of the Panamanian State, a State entity, an intergovernmental organisa - tion or a provider of public services to arrest or detain an object under the laws of the Republic of Panama for payment of amounts owed to such entity, organi - sation or provider directly relating to those services in respect of that object. Finally, the Panamanian State states that these decla - rations do not pose an unacceptable risk to the hold - ers of registered rights. As to Article 50 of the Convention, the Convention and the Protocol shall not apply to any transaction which is an internal transaction in relation to the Republic of Panama with regard to all those types of objects fall - ing within the sphere of application of the Convention or the Protocol. As to Article 53 of the Convention, in accordance with the internal laws of the Republic of Panama, the rel - evant courts are as follows: • ordinary courts; • administrative courts; • the AAC; • those advisory bodies exercising supervisory func - tions in respect of financial institutions and insur - ance companies (superintendencies); and • arbitral tribunals, subject to the powers vested in them by the internal laws of the Republic of Panama. Pursuant to Article 54 (2) of the Convention, any rem - edies available to the creditor under any provision of the Convention and the Protocol which are not there expressed to require application to the court may be exercised without leave of the court. The Protocol In respect of the Protocol the Republic of Panama has made the following declarations. • As to Article XXX(1) of the Protocol, it will apply Articles VIII, XII and XIII of the Protocol.
• As to Article XXX(2) of the Protocol, it will apply Article X of the Protocol. • As to Article XXX(3) of the Protocol: (a) it will apply the entirety of Alternative A of Arti - cle XI of the Protocol to all types of insolvency proceeding, as defined in the Convention; and (b) the waiting period under Article XI shall not exceed 60 days. 2.10.3 Application of Article XIII of the Protocol on Matters Specific to Aircraft Equipment Article XIII of the Protocol applies in the Republic of Panama. IDERAS are submitted with the AAC. 2.10.4 Enforcement of Conventions We are not aware of any precedents before the courts of Panama in relation to parties enforcing the Conven - tion or Protocol. 2.10.5 Other Conventions Panama is a party to the 1948 Geneva Convention on the International Recognition of Rights in Aircraft. 3. Aircraft Debt Finance 3.1 Structuring 3.1.1 Restrictions on Lending and Borrowing There are no restrictions on foreign lenders financing an aircraft or on borrowers using the loan proceedings under the laws of the Republic of Panama. 3.1.2 Effect of Exchange Controls or Government Consents There are no exchange controls or government con - sents that would be material to any financing or repa - triation of realisation proceeds under a loan, guaran - tee or security document in the Republic of Panama. 3.1.3 Granting of Security to Foreign Lenders Borrowers are permitted to grant security to foreign lenders. 3.1.4 Downstream, Upstream and Cross-Stream Guarantees Downstream, upstream and/or cross-stream guaran - tees in favour of lenders are permitted under Panama -
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