RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
3.2.3 Trust/Trustee Concepts The concept of a trust and the role of a security trustee are recognised in Rwanda. 3.2.4 Assignment of Rights to an Aircraft by a Borrower to a Security Trustee A borrower can assign its rights to the aircraft or under an aircraft lease (including in relation to insurances) to a security trustee pursuant to a security assignment or a mortgage. 3.2.5 Assignment of Rights and Benefits Without Attendant Obligations It is possible to assign the rights and benefits of the lessor under an aircraft lease only, without also assign - A security assignment or a guarantee can be gov - erned by English or New York law and does not neces - sarily have to be governed by Rwandan law to be fully enforceable, as long as it does not violate Rwandan public policy. 3.2.7 Formalities/Mandatory Terms to Create and Perfect Security Assignments Registration To perfect the security assignment, it should be reg - istered in the National Register for Interests in Aircraft Registry and/or, if applicable, in the International Reg - istry. Other Formalities It is not required that the security assignment is trans - lated, certified, notarised or legalised to be enforce - able against a domestic party. ing its attendant obligations. 3.2.6 Choice of Foreign Law However, if the case goes to court, a translation will be required if the assignment is not written in Kinyar - wanda. 3.2.8 Domestic Law Security Instruments If an English or New York law-governed security assignment were to be taken in respect of an aircraft registered domestically, an additional domestic law security instrument would not be required. Domestic law security instruments or local law filings are not required in order to make Cape Town filings. In the
financed aircraft. A pledge of shares is recognised under Rwandan law. 3.1.6 Negative Pledges Negative pledges are recognised under Rwandan law as enforceable contractual obligations when made in accordance with Rwandan contract law. 3.1.7 Intercreditor Arrangements There are no material restrictions or requirements imposed on intercreditor arrangements. 3.1.8 Syndicated Loans The concept and role of agent and agency under a syndicated loan is recognised in Rwanda. 3.1.9 Debt Subordination Contractual or structural debt subordination are rec - ognised in Rwanda if they comply with Rwandan con - tract and company law. 3.1.10 Transfer/Assignment of Debts Under Foreign Laws The transfer or assignment of all or part of an out - standing debt under an English or New York-governed loan is permissible and recognised under Rwandan law, to the extent the transfer or assignment is not pre - cluded by the contract, does not materially change the obligations of the debtor, and does not violate Rwan - dan law or public order. 3.1.11 Usury/Interest Limitation Laws There are no usury or interest limitation laws as such in Rwanda. However, there are other consumer, compe - tition, and banking-related obligations regarding rates and fees, such as publication, disclosure and display obligations. 3.2 Security 3.2.1 Typical Forms of Security and Recourse The typical form of security and recourse granted in an aviation finance transaction in Rwanda is a mortgage. 3.2.2 Types of Security Not Available There are no types of security that cannot be taken over an aircraft or related collateral.
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