PANAMA Law and Practice Contributed by: María de Lourdes Marengo and Joaquín De Obarrio, Patton Moreno & Asvat
3.2.16 Form and Perfection of Security Over Bank Accounts Security over bank accounts is typically taken in the form of a pledge on the account whereby the bank acts as the depository of the funds. 3.3 Liens 3.3.1 Third-Party Liens A possessory lien is granted to repair and mainte - nance providers for unpaid services performed on an aircraft. This lien covers only the aircraft that receives the services and is valid for the work actually done. The service provider may retain the aircraft until it receives payment. Airport and navigation fees and amounts due in respect of salaries and other contributions owed to the flight crew create a lien over the aircraft regardless of who is the owner or operator. 3.3.2 Timeframe to Discharge a Lien or Mortgage The discharge of a mortgage must be executed by the mortgagee and registered with the Public Registry Office. Registration may take from five to fifteen days provided that the aircraft and the parties are up to date in payment of all fees due to the AAC and the Ministry of Economy and Finance. 3.3.3 Register of Mortgages and Charges Mortgages on aircraft are registered at the Aircraft Section, Movable Assets Section of the Public Reg - istry Office and filed with the Aeronautics Registry of the AAC. Mortgages on engines are registered at the Mortgage on Movable Assets Section of the Public Registry Office. There is no register for charges. Reg - istration of mortgages at the Public Registry Office creates a preferred lien over the aircraft and/or engine. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens An aircraft may be detained for failure to comply with legal requirements or when the aircraft is used in illegal activities, or in the case of war, national catastrophe or suspension of constitutional rights. There are no provisions in respect of statutory rights of detention or non-consensual preferential liens on a fleet-wide basis.
the form of a mortgage over the aircraft must be reg - istered with the Public Registry Office. 3.2.10 Transfer of Security Interests Over Aircraft/ Engines The transfer of a security interest over an aircraft or engines should be recognised in Panama. The transfer of the security in the form of a mortgagee must be recorded with the Public Registry Office. 3.2.11 Effect of Changes in the Identity of Secured Parties If the identity of the security agent that is registered in Panama as the lender changes, this must be recorded with the Public Registry. If the identity of the secured parties changes without changing the identity of the security agent that is registered in Panama, there is no need for registration of the change and the interest of the secured parties will not be jeopardised. 3.2.12 “Parallel Debt” Structures “Parallel debt” structures may be used domestically. 3.2.13 Effect of Security Assignments on Residence of Secured Parties A secured party under a security assignment will not be deemed to be resident, domiciled, carrying on business or subject to any taxes as a result of it being a party to – or the enforcement of – such security assignment. 3.2.14 Perfection of Domestic Law Mortgages A domestic law mortgage is perfected through its execution by the parties, its translation into Spanish by an official translator in Panama if executed in a for - eign language, protocolisation in a notarial deed and registration with the Public Registry Office. If executed outside Panama, the signature of the parties must be certified by a notary public and the signature of the notary public must be legalised according to the 196 Hague Convention on the Apostille. 3.2.15 Differences Between Security Over Aircraft and Spare Engines There is no difference between the form of security, or perfection thereof, taken over an aircraft and that taken over spare parts; both are governed by the law on mortgages on movable assets.
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