PANAMA Law and Practice Contributed by: María de Lourdes Marengo and Joaquín De Obarrio, Patton Moreno & Asvat
3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser may search the records of the Aircraft Section, Movable Assets Section of the Public Registry Office to verify if the aircraft is free of encum - brances. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees The enforcement of a security assignment is not a significantly different process from the enforcement of loans or guarantees. 3.4.2 Security Trustees’ Enforcement of Their Rights A security trustee may enforce its rights under the security assignment pursuant to a notice and acknowl - edgement executed by the lessor and lessee. 3.4.3 Application of Foreign Laws Domestic courts will uphold foreign law as the gov - erning law of a finance or security document to the extent that such laws are not contrary to public policy in Panama. Domestic courts will recognise the sub - mission to a foreign jurisdiction. 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 A secured party may not take physical possession of the aircraft to enforce a security agreement/aircraft mortgage without the lessee’s or operator’s consent. In the absence of consent from the lessee or operator, the secured party must obtain a court order to take possession of the aircraft. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions Enforcement actions under a security agreement/air - craft mortgage must be filed before the civil circuit courts of Panama.
3.4.7 Summary Judgments or Other Relief Summary and/or executory proceedings are available to secured parties, which may also request an attach - ment on the aircraft or other assets belonging to the debtor. For the attachment, the court may request the posting of security in the amount of 30–40% of the claimed amount. 3.4.8 Judgments in Foreign Currencies A secured party under a security agreement/aircraft mortgage may obtain a judgment in a foreign currency. 3.4.9 Taxes/Fees Payable Secured parties are not required to pay taxes in con - nection with the enforcement of a security agree - ment/aircraft mortgage. Stamp duties in the amount of USD0.10 for each USD100.00 of the value of the security agreement/aircraft mortgage are required for enforcement. Notarial paper fees paid in respect of the aircraft mortgage are deducted from the stamp duties payable for enforcement of the mortgage. 3.4.10 Other Relevant Issues There are no other relevant issues that a lender should be aware of in relation to the enforcement of its rights in Panama. 4. Other Issues of Note 4.1 Issues Relevant to Domestic Purchase, Sale, Lease or Debt Finance of Aircraft There are no other material issues and/or any mate - rial court judgments that are relevant to the purchase, sale, lease or debt financing of an aircraft registered in Panama and/or involving a domestic party. 4.2 Current Legislative Proposals There are no known current proposals before the leg - islature relating to the foregoing items that may alter these or that are worth noting.
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