CAYMAN ISLANDS Law and Practice Contributed by: Sarah Humpleby, Alexandra Franklin, Peter Kendall and Sam Hall, Walkers
bill of sale for the aircraft in favour of the registering owner. If there is a change in ownership of a Cayman Islands- registered aircraft, that change must be notified to the CAACI within 28 days in accordance with the ANOTO, and a copy of the bill of sale for the aircraft may be provided as evidence of the change in ownership. The CAACI will also require certain due diligence on the new owner and for all outstanding fees in respect of the aircraft to be settled prior to updating the Aircraft Register. No government applications or consents are a pre - requisite to executing and delivering a bill of sale in relation to an aircraft or engine registered in the Cay - man Islands. Assuming the bill of sale satisfies the requirements for registration as an “international interest” under the Cape Town Convention (as defined in 2.10 Cape Town Convention and Others ), such filings can be made on the International Registry (IR). 1.2.5 Taxes/Duties Payable Upon Execution of a Bill of Sale See 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement .
of that foreign jurisdiction and all other relevant jurisdictions; and • the lease has been duly executed and delivered and, as a matter of the laws of all relevant jurisdic - tions, constitutes the legal, valid and binding obli - gations of each of the parties thereto, enforceable under its terms. Subject to the provisos above and general qualifica - tions, one would expect the Cayman Court to give effect to an English law or New York law-governed lease in customary form and on customary market terms. The term “enforceable” and its cognates, as used in this analysis, mean that the obligations assumed by any party under any document are of a type that the Cayman Court would enforce. This does not mean that those obligations will necessarily be enforced in all circumstances in accordance with their terms. 2.1.3 Restrictions Concerning Payments in US Dollars There are currently no foreign exchange controls or foreign exchange regulations under Cayman Islands law. 2.1.4 Exchange Controls See 2.1.3 Restrictions Concerning Payments in US Dollars . 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease See 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement . 2.1.6 Licensing/Qualification of Lessors There are no formal legal requirements under Cayman Islands law for lessors to be licensed or otherwise qualified in the Cayman Islands to do business with a domestic lessee. 2.2 Lease Terms 2.2.1 Mandatory Terms for Leases Governed by English or New York Law There are no mandatory terms that a lease (or ancillary documents thereto) is required to contain under Cay -
2. Aircraft and Engine Leasing 2.1 Overview 2.1.1 Non-Permissible Leases
Subject to the general requirements for any contract to be substantively valid as a contract, there are no known types of leases that are not permissible or rec -
ognised under Cayman Islands law. 2.1.2 Application of Foreign Laws
In principle, the Cayman Court will recognise and enforce an aircraft lease governed by the laws of a jurisdiction other than the Cayman Islands, provided that: • the choice of governing law was made in good faith by the parties and would be regarded as a val - id and binding selection and upheld in the courts
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