CAYMAN ISLANDS Law and Practice Contributed by: Sarah Humpleby, Alexandra Franklin, Peter Kendall and Sam Hall, Walkers
Walkers (Cayman) LLP 190 Elgin Avenue George Town Grand Cayman KY1 – 9001 Cayman Islands
Tel: +1 345 949 0100 Fax: +1 345 949 7886
Email: info@walkersglobal.com Web: www.walkersglobal.com
1. Aircraft and Engine Purchase and Sale 1.1 Sales Agreements 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement The Cayman Islands currently have no form of income, corporate or capital gains tax and no estate duty, inheritance tax or gift tax. Stamp duty may be pay - able on documents executed in, or brought to, the Cayman Islands or put before the Grand Court of the Cayman Islands (the “Cayman Court”). 1.1.2 Enforceability Against Domestic Parties There is no formal legal requirement under Cayman Islands law that a sale agreement must be translated, certified, notarised or legalised to be valid or enforce - able. 1.2 Transfer of Ownership 1.2.1 Transferring Title Title is invariably transferred by way of bill of sale and there are no specific formalities under Cayman Islands law. If, following the sale of the relevant ownership inter - est, the entity owning legal title remains the same, no sale of the physical asset would occur. It should be noted that if the aircraft is registered with the Civil Aviation Authority of the Cayman Islands (CAACI), any change in the particulars of the aircraft (including any change in beneficial or legal ownership) furnished to the CAACI at the time of first registration should be notified to the CAACI within 28 days of such a change,
in accordance with the Air Navigation (Overseas Terri - tory) Order 2013 (as amended) (ANOTO). 1.2.2 Sales Governed by English or New York Law There is no formal legal requirement under Cayman Islands law that a bill of sale needs to be governed by Cayman Islands law for the Cayman Court to recog - nise the title transfer. In the absence of public policy restrictions, the parties are free to choose the govern - ing law of the bill of sale. There are no known specific requirements, other than the general requirements for any contract, for the bill of sale to be substantively valid as a contract. 1.2.3 Enforceability Against Domestic Parties There is no formal legal requirement under Cayman Islands law that a bill of sale must be translated, certi - fied, notarised or legalised to be valid or enforceable. 1.2.4 Registration, Filing and/or Consent From Government Entities There is no formal legal requirement under Cayman Islands law for a bill of sale to be registered, filed, or subject to any consent from any government entity, except that a copy of the bill of sale should be pro - vided to the CAACI in respect of aircraft which are or will be registered on the Cayman Islands Aircraft Reg - ister maintained by the CAACI (the “Aircraft Register”). For a new registration, all relevant application forms may be submitted via the CAACI′s online registration portal for approval by the Director General of Civil Aviation. The application should include a copy of the
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