SENEGAL Law and Practice Contributed by: Claudy Monja and Mampionona Razafimamonjy, John W Ffooks & Co
2.1.3 Restrictions Concerning Payments in US Dollars There are no known material restrictions imposed on domestic lessees making rental payments to foreign lessors in US dollars. It is understood that this should be mutually agreed by the parties under the lease agreement, subject to compliance with exchange control requirements and payment offshore. 2.1.4 Exchange Controls Pursuant to the West African Economic and Monetary Union (WAEMU) regulation of the external financial relations of the member states of WAEMU, transfers and/or receipt of funds outside of WAEMU member states can only be carried out through the central bank, the administration or an approved intermediary or manual exchange-licensed agent. 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease There are no taxes/duties payable for executing a lease physically in Senegal by or to a domestic party, or as a consequence of an original or copy of a lease being brought into Senegal, either physically or elec - tronically. 2.1.6 Licensing/Qualification of Lessors Under local law, a lessor does not have to be licensed or otherwise qualified to do business with a domestic lessee. However, in order to use a foreign-registered aircraft, prior authorisation should be obtained from the Civil Aviation Authority. 2.2 Lease Terms 2.2.1 Mandatory Terms for Leases Governed by English or New York Law Under the letter of the law of Senegal, the lease agree - ment must at least include: • the effective date and expiry date of the lease agreement; • the names of the parties to the lease agreement; • a description of the aircraft, including its make, manufacturer, model designation and serial num - ber; and • a clause indicating the person responsible for the continuing airworthiness for the duration of the lease.
2.2.2 Tax and Withholding Gross-Up Provisions Tax and other withholding gross-up provisions are permissible and enforceable in Senegal. 2.2.3 Parts Installed or Replaced After a Lease’s Execution The letter of the law does not, in particular, state whether the lease may cover parts that are installed or replaced on an aircraft or engine after its execution and which steps should be taken to ensure that those parts are captured under the lease. In practice, the lease may cover the whole aircraft or just a compo - nent of the aircraft. 2.2.4 Risk of Title Annexation The letter of the law does not provide for the concept of title annexation. Engines can be registered in a system for the registra - tion of documents affecting title to, or ownership of, any civil aircraft to be considered as separate assets from the aircraft. 2.2.5 Recognition of the Concepts of Trust/Trustee Under the Organisation for the Harmonisation of Busi - ness Law in Africa ( Organisation pour l’Harmonisation en Afrique du Droit des Affaires , or OHADA) Uniform Act organising securities (the “Uniform Act on Secu - rities”), there is the concept of fiduciary transfer of money ( transfert fiduciaire de somme d’argent ), under which a sum of money represents the agreement whereby a settlor transfers funds as security for the performance of an obligation. These funds must be entered into a blocked account opened in the name of the creditor in the books of an approved finance company. 2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register While the letter of the law is silent on whether the interests of the owner (legal or beneficial) or a lessor of any aircraft can be noted in the Aircraft Register, the understanding is that their interests may be noted. All interests taken in an aircraft or as part of an aircraft registered in Senegal are registered in the local regis - try. Registration allows the beneficiary’s interest to be enforceable against third parties.
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