RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
2.7 Lease Assignment/Novation 2.7.1 Recognition of the Concepts of Contractual Assignment and Novation The concepts of contractual assignment and novation are generally recognised in Rwanda. 2.7.2 Assignment/Novation of Leases Under Foreign Laws Assuming that a lessor transferring its rights under an aircraft lease is assigning or novating its rights under the lease to a new lessor pursuant to a New York or English law-governed assignment and assumption agreement or novation agreement, the agreement will be held valid by Rwandan courts provided that: • the lessee has been given notice in writing; • the notice identifies the associated rights; and • the new lessor has consented in writing. There are no mandatory terms that Rwandan law requires to be included in the agreement. The agree - ment must only be in writing and enable the associ - ated rights to be identified. 2.7.3 Enforceability of Lease Assignments/ Novations It is not required that an aircraft and/or engine lease assignment and assumption/novation be translated, certified, notarised or legalised to be enforceable against a domestic party. However, if the case goes to court, a (partial) transla - tion will be required if the agreement is not written in Kinyarwanda. 2.7.4 Filing/Registration of Lease Assignments/ Novations Filing or Registration of Lease Assignment/ Novations A lease assignment or novation can be registered. If so, it will be registered in the National Register for Interests in Aircraft and/or the International Registry. The parties must, inter alia, provide the RCAA with a complete certified copy of the lease assignment or novation agreement.
2.6.7 Judgments in Foreign Currencies A lessor can obtain a judgment in a foreign currency, as the judgment should refer to the currency agreed upon by parties in the lease agreement. 2.6.8 Limitations on Lessors’ Actions Following Termination Damages for breach of the contract may be provided for in the contract, but only at a reasonable amount based on the actual loss or potential loss that could occur in the case of a breach of the contract. A clause fixing excessive damages will be deemed contrary to public policy and therefore will not be enforced by Rwandan courts. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees The lessor will not be required to pay taxes or fees in a significant amount (ie, non-nominal) in connection with the enforcement of a lease in Rwanda. 2.6.10 Mandatory Notice Periods In principle, the lessor will be required to comply with a mandatory notice period of at least ten working days. However, it is highly advisable to give the lessee a reasonable notice period depending on the specific circumstances of the case. 2.6.11 Lessees’ Entitlement to Claim Immunity The lessee is in principle not entitled to claim sover - eign or other immunity from suit. In any event, this immunity can be waived. 2.6.12 Enforcement of Foreign Arbitral Decisions Rwanda has adopted the New York Convention. Rwanda recognises and enforces foreign arbitral awards on the basis of reciprocity, and therefore only recognises awards issued in countries that themselves recognise awards issued in Rwanda, which is the case for all countries party to the New York Convention. 2.6.13 Other Relevant Issues There are no other relevant issues that a lessor should be aware of in relation to the enforcement of its rights.
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