Cape Town Convention to take effect in Bermuda in 2018
UNIDROIT have confirmed that the Convention on International Interests in Mobile Equipment and the associated Aircraft Equipment Protocol – known as the Cape Town Convention – will enter into effect in Bermuda on 1 January 2018.
The British Overseas territory has had its domestic legislation, with the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act having been in effect since August last year. Following this, declarations were submitted to the UK government for approval.
Bermudan law firm Conyers Dill & Pearman hope that the Convention will strengthen the territory’s position as “A leading jurisdiction for aviation financing and aviation asset-backed securitizations”, said Julie E. Mclean, Global Head of Aviation Finance, Bermuda.
The Bermuda registry currently has 800 aircraft listed on its register, both private and commercial.