RWANDA Law and Practice Contributed by: Jean Pierre Kesteloot and Penina Ngabire, Liedekerke Great Lakes
3.2.15 Differences Between Security Over Aircraft and Spare Engines There are no differences between the forms of security or perfection taken over an aircraft and those taken over spare engines. 3.2.16 Form and Perfection of Security Over Bank Accounts The form of security typically used to take security over a bank account would be a pledge over the bank account. The pledge can be perfected by registration with the securities registry of the Office of the Regis - trar General (ORG). 3.3 Liens 3.3.1 Third-Party Liens Permissible Third-Party Liens As per Rwanda’s declaration under Article 39 (1)(a) of the Convention, a third party can take and register a lien over an aircraft or engine for certain non-con - sensual liens. Unpaid airport fees, navigation charges, customs duties and repairers’ costs are all permissible non-consensual liens. Remedies in Enforcing the Lien To enforce their lien, third parties can seize and detain the aircraft until the due amount gets paid in full. If airport fees or navigation charges are not paid, the RCAA will initiate court proceedings to attach any air - craft operated or owned by the debtor. In contrast, a repairer can, without a court order, retain physical possession of an aircraft or engine until it has been paid for its services. 3.3.2 Timeframe to Discharge a Lien or Mortgage The discharge of a lien or mortgage over an aircraft may take two to three months. 3.3.3 Register of Mortgages and Charges The interests of an aircraft mortgagee or security trustee can be registered in the National Register for Interests in Aircraft. Registration establishes the prior - ity of interest in the aircraft or engine. These interests cannot be noted or registered in the Aircraft Register.
event of a domestic law security instrument and local law filings, the average costs of execution would be subject to a fee ranging from USD500 to USD10,000 for the registration of an interest in an aircraft or a fee of USD3,000 for the registration of an interest in an engine or any other components. An English or New York law-governed security assign - ment or a domestic law security instrument can be registered in Rwanda. 3.2.10 Transfer of Security Interests Over Aircraft/ Engines The transfer of security over an aircraft and/or an engine is recognised in Rwanda. 3.2.11 Effect of Changes in the Identity of Secured Parties 3.2.9 Domestic Registration of Security Assignments Governed by Foreign Laws If the identity of the secured parties under a security assignment changes after its execution, the security interest will not be jeopardised, although the appropri - ate filings and registrations must be made. 3.2.12 “Parallel Debt” Structures The authors are not aware of parallel debt structures in aviation financing in Rwanda. The role of security trustee is recognised in Rwanda and, as such, parallel debt structures are not per se necessary (see 3.2.3 Trust/Trustee Concepts ). 3.2.13 Effect of Security Assignments on Residence of Secured Parties A secured party under a security assignment would generally not be deemed to be resident, domiciled, carrying on business or subject to any taxes, solely as a result of its being a party to, or its enforcement of, such a security assignment. 3.2.14 Perfection of Domestic Law Mortgages A domestic law mortgage over an aircraft or engine can be perfected by registration in the National Reg - ister for Interests in Aircraft.
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