RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
3. Aircraft Debt Finance 3.1 Structuring 3.1.1 Restrictions on Lending and Borrowing Foreign lenders and borrowers are subject to Rwan - dan law. As a general rule, there are no restrictions on foreign lenders financing an aircraft locally or on borrowers using the loan proceeds. 3.1.2 Effect of Exchange Controls or Government Consents Specific Exchange Controls or Government Consents There are no specific exchange controls or govern - ment consents that would be material to any financing or repatriation of realisation proceeds under a loan, guarantee or security document. General Exchange Controls Nonetheless, the general exchange control frame - work will apply to the financing or repatriation of any realisation proceeds (eg, using an authorised bank, see 2.1.3. Restrictions Concerning Payments in US Dollars ). Prior Government Consents In addition, prior to any financing or repatriation of the proceeds, the realisation itself will require govern - ment consents in the case of a security document (eg, obtaining a certificate from the Office of the Registrar General (ORG) authorising the possession of the col - lateral). 3.1.3 Granting of Security to Foreign Lenders Borrowers are permitted to grant security to foreign lenders, which must comply with the general require - ments for securities under Rwandan law. 3.1.4 Downstream, Upstream and Cross-Stream Guarantees Downstream, upstream and cross-stream guaran - tees are permitted in favour of lenders when made in accordance with Rwandan contract law. 3.1.5 Lenders’ Share in Security Over Domestic SPVs It is possible for a lender to take share security over a domestic special purpose vehicle that owns the
• liens or other rights of a state entity relating to taxes or other unpaid charges of any type whatso - ever (which is not covered by the declaration under Article 39 (1)(a) of the Convention); and • any other non-consensual right or interest which is not covered by the declaration under Article 39 (1) (a) of the Convention. Other Declarations In addition, Rwanda has declared that: • under Article 52 the Convention will apply to all its territorial units; • under Article 53 the Commercial Court and the Commercial High Court are the relevant court(s) for the purposes of Article 1 and Chapter XII of the Convention; and • under Article 54 (2) any remedies available to the creditor under the Convention which are not expressed under the relevant provision thereof to require application to the court may be exercised without leave of the court or other court action. Rwanda has also made declarations under Articles XXIX and XXX(1), (2), and (3) of the Protocol. 2.10.3 Application of Article XIII of the Protocol on Matters Specific to Aircraft Equipment Article XIII of the Protocol applies in Rwanda. An IDE - RA can be submitted to the Aircraft Register. It must The authors are not aware of any case law regarding the enforcement of the Convention or the Protocol. 2.10.5 Other Conventions Rwanda has not ratified the 1948 Geneva Convention on the International Recognition of Rights in Aircraft on 17 May 1971, nor the 1933 Rome Convention on the Unification of Certain Rules relating to the Precau - tionary Arrest of Aircraft. be in the form shown in RCATS 35.125. 2.10.4 Enforcement of Conventions
498 CHAMBERS.COM
Powered by FlippingBook