Cap. 503 чл. 29Mortgage of aircraft or share.

(1) A registered aircraft or a share therein may be made a security for any debt or other obligation by means of an instrument creating a mortgage in accordance with this Part (in this Act called a "mortgage") executed by the mortgagor in favour of the mortgagee in the presence of, and attested by, a witness or witnesses, in the form specified in regulations.

(2) A mortgage is indivisible notwithstanding the divisibility of the underlying debt or other obligation which it may secure.

(3) A mortgage shall attach to any proceeds from any indemnity arising from any mishaps as well as any insurance proceeds; provided that this provision shall not apply in relation to an indemnity payable under a liability policy.

(4) It shall be lawful for a mortgage to be executed and registered in favour of a security trustee appointed or acting under a trust for the benefit of persons to whom a debt or other obligation is due. Such security trustee shall, in any such case, be recognised as the mortgagee of the particular mortgage and shall be entitled to exercise all the rights in relation to that mortgage as are accorded to mortgagees by this Act or any other enactment. Any such security trust shall be governed by the provisions of article 2095E of the Civil Code when the applicable law is the law of Malta.

(5) A mortgage registered under this Part may be drawn up to secure the payment of a principal sum and interest, an account current, as well as the performance of any other obligation, including a future obligation due by the debtor to the creditor. It shall not be necessary to indicate the monetary value of the indebtedness in the mortgage unless it is intended to secure a future obligation in which case a maximum sum by way of principal for which the mortgage is granted must be expressly stated in the registered instrument and such sum shall be reflected in the register by the Director General.

A mortgage to secure a future obligation may only be granted in favour of a credit institution in an approved jurisdiction or such other organisation as may be permitted by means of a Notice issued by the Minister.

(6) For the purposes of this Act, the term ''account current'' means any indebtedness of a mortgagor in favour of a mortgagee arising and determinable in accordance with an underlying obligation and all the provisions of the Commercial Code relative to the contract of account current including the provisions of article 264 thereof shall not apply thereto unless expressly agreed to by the parties.

(7) When an international interest is registered in the International Registry it shall be enforceable even in the absence of the registration or notation in the Malta Aircraft Register and shall be regulated by the First Schedule and the law governing its terms.