Mortgaging of Aircraft and Aircraft Engines Act 1999

Link to law: http://www.bermudalaws.bm/Laws/Annual%20Laws/1999/Acts/Mortgaging%20of%20Aircraft%20and%20Aircraft%20Engines%20Act%201999.pdf

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Mortgaging of Aircraft and Aircraft Engines Act 1999
MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

1

BERMUDA
1999 : 16

MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

[Date of Assent 18 June 1999]

[Operative Date ]

WHEREAS it is expedient to make provision for the mortgaging
of aircraft and aircraft engines:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Citation
1 This Act may be cited as the Mortgaging of Aircraft and Aircraft
Engines Act 1999.

Interpretation
2 In this Act—

"aircraft" means airframes with aircraft engines installed thereon
and includes helicopters and gyroplanes;

"aircraft engine" means an aircraft engine powered by jet
propulsion or turbine technology that—

(a) in the case of a jet propulsion engine, has at least 1750
lbs of thrust or its equivalent;

MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

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(b) in the case of a turbine powered aircraft engine, has at
least 550 rated takeoff shaft horsepower or its
equivalent,

together with all modules and other installed, incorporated or
attached accessories, parts and equipment and data, manuals
and records relating to them;

"Bermuda nationality register" means the register of aircraft
maintained in Bermuda in pursuance of Article 4 of the Air
Navigation (Overseas Territories) Order 1989;

"Minister" means the Minister responsible for civil aviation;

"mortgage of an aircraft" includes a mortgage which extends to
any store of spare parts for that aircraft but does not otherwise
include a mortgage created as a floating charge;

"mortgage of an aircraft engine" includes a mortgage which
extends to any store of spare parts for that aircraft engine but
does not otherwise include a mortgage created as a floating
charge;

"owner" means the person shown as the owner of a mortgaged
aircraft or aircraft engine on the form of application for
registration of that aircraft in the Bermuda nationality register or
on such other documentation as may evidence conclusive title to
the aircraft or aircraft engine.

(2) A reference in this Act to an aircraft or aircraft engine
includes a share in an aircraft or aircraft engine.

Mortgage of aircraft and aircraft engine
3 The following may be made security for a loan or other valuable
consideration—

(a) an aircraft registered in the Bermuda nationality register
or capable of being so registered;

(b) an aircraft engine,

that, in either case, is owned by or otherwise in the lawful possession of
a company incorporated in Bermuda.

Mortgagee not treated as owner
4 Except as far as may be necessary for making a mortgaged
aircraft or aircraft engine available as security for the mortgage debt, the
mortgagee shall not by reason of the mortgage be deemed to be the
owner of the aircraft or aircraft engine, nor shall the mortgagor be
deemed to have ceased to be the owner thereof.

MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

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Registers of aircraft and aircraft engine mortgages
5 (1) The Minister shall establish and maintain—

(a) a register of aircraft mortgages; and

(b) a register of aircraft engine mortgages.

(2) Subject to subsection (4), any mortgage of an aircraft
registered in the Bermuda nationality register or capable of being so
registered may be entered in the register maintained under subsection
(1)(a).

(3) Subject to subsection (4), any mortgage of an aircraft engine
may be entered in the register maintained under subsection (1)(b).

(4) Subsections (2) and (3) apply where the aircraft or aircraft
engine is owned by or in the lawful possession of a company
incorporated in Bermuda.

Responsibilities of Minister
6 (1) The Minister is responsible for the administration of this Act
and shall—

(a) have the general administration, control and
management of the register of aircraft mortgages and
register of aircraft engine mortgages;

(b) provide such services and facilities as are in the opinion
of the Minister necessary or desirable for the proper and
efficient operation of the registers;

(c) in exercising and discharging his functions have regard
to the reasonable aims and requirements of the aviation
industry and shall use his best endeavours to give effect
to such aims and requirements.

(2) The Minister shall exercise his functions in a manner
consistent with—

(a) any provision of law in force in Bermuda relating to civil
aviation or any direction, order or notice made, given or
issued under any such provision of law;

(b) any international convention relating to civil aviation
adhered to for the time being by Her Majesty's
Government in the United Kingdom or by Her Majesty's
Government in Bermuda, insofar as such provisions
apply in relation to civil aviation in Bermuda;

(c) any agreement relating to civil aviation in Bermuda
entered into and for the time being subsisting between

MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

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Her Majesty's Government in the United Kingdom or Her
Majesty's Government in Bermuda and Her Majesty's
Government in any of Her Majesty's overseas territories
or the government of any foreign state.

Regulations
7 (1) The Minister may make regulations—

(a) for the administration of the registers of aircraft
mortgages and aircraft engine mortgages and for all
procedural matters associated with it;

(b) prescribing fees and charges in respect of services
provided under this Act.

(2) The regulations may, in particular—

(a) include provisions which correspond (subject to such
modifications as appear to the Minister to be necessary
or expedient) to any of the provisions of the Merchant
Shipping Act 1894 relating to the mortgaging of ships;

(b) make provision as respects the rights and liabilities of
mortgagors and mortgagees of aircraft or aircraft engines
between them, and as respects the priority of such rights
and the relationship of such rights to other rights in or
over such aircraft or aircraft engines, including
possessory liens for work done to such aircraft or
aircraft engines;

(c) make provision as respects the operation, in relation to
aircraft or aircraft engines, of any of the enactments in
force in Bermuda relating to bills of sale or the
registration of charges on the property or undertaking of
companies;

(d) provide for the rights of mortgagees of aircraft or aircraft
engines to be exercisable, in such circumstances as may
be specified in the regulations, in relation to payments
for the use of the aircraft or aircraft engines;

(e) confer on courts in Bermuda powers in respect of the
registers maintained in pursuance of this Act and in
respect of transactions affecting aircraft or aircraft
engines registered therein.

(3) Regulations made under subsections (1)(a) and (2) are
subject to the negative resolution procedure.

MORTGAGING OF AIRCRAFT AND AIRCRAFT ENGINES ACT
1999

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(4) Regulations made under subsection (1)(b) are subject to the
affirmative resolution procedure.

False statements
8 Any person who, for any purpose related to the administration of
this Act or the regulations, knowingly or recklessly makes any statement
which is false in a material particular is guilty of an offence and is liable
on summary conviction to a fine of $5,000 or imprisonment for a term of
6 months.

Commencement
9 This Act comes into force on such date as the Minister may
appoint by notice published in the Gazette.