CAYMAN ISLANDS Law and Practice Contributed by: Sarah Humpleby, Alexandra Franklin, Peter Kendall and Sam Hall, Walkers
2.3.2 Registration If the Owner Is Different From the Operator See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register . In order to register an aircraft on the Aircraft Register: • an aircraft registration application must be sub - mitted (this can be done via the CAACI′s online platform) and a deposit paid; • financial and legal due diligence satisfactory to the CAACI must be completed, following which the CAACI will issue a notice of acceptance of the applicant and a reserved Cayman Islands registra - tion mark; • an airworthiness survey of the aircraft must be completed by a CAACI surveyor; • supporting documentation (including various tech - nical forms) must be completed and submitted; and • deregistration from any existing state of registration must be completed. 2.3.3 Aircraft/Engine-Specific Registers There is no formal legal requirement for a lease to be registered with the CAACI in relation to an aircraft registered in the Cayman Islands. However, it is usual in the case of an aircraft registered in the name of its “charterer by demise” for the CAACI to request a copy of the aircraft lease in support of the registration application. The CAACI does not maintain a separate engine reg - ister. 2.3.4 Registration of Leases With the Domestic Aircraft Registry See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register and 2.3.3 Aircraft/Engine-Specific Registers . Leases are not subject to consent from any government entity. 2.3.5 Requirements for a Lease to Be Valid and Registrable See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register and 2.3.3 Aircraft/Engine-Specific Registers . An aircraft lease submitted to the CAACI is not required to satisfy any formalities, although the
CAACI will ask for a lease in a language other than English to be accompanied by an English translation. 2.3.6 Taxes/Duties Payable for Registering a Lease See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register and 2.3.5 Requirements for a Lease to Be Valid and Registrable . Any fees payable to the CAACI are for registration of the aircraft, not the lease. 2.3.7 Registration of Aircraft in Alternative Countries This is not applicable in the Cayman Islands. 2.3.8 Requirements for Documents Concerning Registration The CAACI requires certain know-your-customer documents to be notarised as part of the legal and financial due diligence conducted during an applica - tion for registration of an aircraft. See 2.3.5 Requirements for a Lease to Be Valid and Registrable . 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor See 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement . 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor A foreign lessor that is not already resident in the Cay - man Islands prior to its entry into a lease would not be deemed to be resident, domiciled or carrying on a business in the Cayman Islands by reason only of the execution, delivery, performance or enforcement of that lease. 2.4.3 Engine Maintenance and Operations See 2.4.6 Priority of Third Parties’ Rights in relation to repairers′ liens and 2.4.4 Damage or Loss Caused by an Asset in relation to operational liability. 2.4.4 Damage or Loss Caused by an Asset The owner of an aircraft registered with the CAACI could be subject to strict liability by virtue of Sec - tion 40 (2) of the Civil Aviation Act, 1949 (as extended to the Cayman Islands by the Civil Aviation Act 1949 (Overseas Territories) Order 1969, known as the “CAA
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