SPAIN Law and Practice Contributed by: Alfonso López-Ibor and Olivia López-Ibor, Lopez-Ibor Abogados
3.2.15 Differences Between Security Over Aircraft and Spare Engines There are no differences between the form of security (or perfection) taken over an aircraft and that taken over spare engines. 3.2.16 Form and Perfection of Security Over Bank Accounts Under a pledge agreement, a pledge can be created over the credit rights derived from a bank account. In this case, the perfection of security is achieved via the notarial deed of pledge and the transfer of credit rights to the secured party. 3.3 Liens 3.3.1 Third-Party Liens Under Spanish law, unpaid airport landing and park - ing charges would not create a legal lien over the air - craft. However, the lessor might be prevented by local airports from flying the aircraft if outstanding airport fees remain. This would occur when there has been a change of operator while the aircraft is grounded at a Spanish airport. Consequently, the airport has a retention right under administrative law. Strictly speaking, air navigation, landing and park - ing charges are Spanish user fees ( tasas ), enforce - able through tax procedures, including aircraft seizure and sale via public auction, but the aircraft owner may regain possession of the aircraft by taking court action, considering that liability for landing and park - ing fees generally lies with the operator. In the case of repairer’s charges, Spanish law would consider that a workshop is entitled to a retention right over the aircraft by virtue of Article 1600 of the Civil Code. Furthermore, under Article 32.2 of the Worker’s Stat - ute, claims for unpaid salaries of a Spanish company rank higher than the claims of any other creditors in respect of “goods made by the employees while they are still legally owned or in the possession of the employer”. However, the Spanish courts have inter - preted this broadly in the past, so this risk cannot be completely ruled out.
3.3.2 Timeframe to Discharge a Lien or Mortgage To discharge a mortgage under Spanish law, a deed of release must be granted before a local notary, a clear - ance regarding the stamp duty exemption obtained, and the discharge recorded in the Register of Goods and Chattels. The entire process typically takes around one to two months. 3.3.3 Register of Mortgages and Charges The Register of Goods and Chattels is the register of mortgages and charges. The primary effect of regis - tration in this Register is to confer evidence and pri - ority concerning ownership status and liens over the aircraft. Under Spanish law, an aircraft mortgage is perfected upon its registration in this register. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens Certain statutory liens, which arise by operation of law, allow for the arrest of an aircraft, although their nature and impact can be contentious. Liens on a fleet-wide basis do not exist since the prin - ciple is that a lien, security, attachment or retention right must be created over a specific object. Article 133 of Spanish Air Navigation Law states that certain debts should be considered preferential debts over the aircraft (eg, taxes due over the previous and current year; unpaid wages; and costs and expenses incurred in giving assistance to, or rescuing, the air - craft). 3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser of an aircraft should request a search in the Register of Goods and Chattels to verify that an aircraft is free of encumbrances, liens and mortgages. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees Generally, security assignments, loans or guarantees can only be enforced by pursuing the appropriate court action.
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