Cap. 503 Art. 31Preservation of special privileges or reservation of title of aircraft on accessories of aircraft.

(1) Subject to article 32 and the terms of any inter-creditor agreement, upon the registration of any mortgage in the Malta

Aircraft Register, the rights of any mortgagee shall not be affected by the following happening subsequently:

(a) the creation of any separate privilege or charge on an aircraft or on any part, appurtenance or accessory of an aircraft which may attach in virtue of any law except for the privileges listed in article 42(1); or

(b) the reservation of ownership rights by a seller on an aircraft or on any part, appurtenance or accessory sold to a buyer under a contract of sale, hire purchase or any similar contract;

(c) any lease: Provided that provisions, fuel and other consumable goods shall not be considered as appurtenances: Provided further that the provision of this article shall in no way prejudice or reduce the rights of any creditor enjoying a privilege or reserving ownership rights in relation to any creditor other than the mortgagee.

(2) Subject to article 32, at any time prior to the registration of a mortgage on an aircraft any creditor having a separate privilege or charge on any part, appurtenance or accessory of an aircraft may register such privilege or charge in the register of the aircraft by means of an instrument executed by the owner in the presence of a witness in the form prescribed, and on the production of such instrument, the Director General shall by memorandum under his hand notify on each charge that it has been recorded by him stating the day and hour of that record.

(3) Subject to article 32, a seller reserving ownership rights on an aircraft or on any part, appurtenance or accessory of an aircraft or enjoying the benefit of any conditions affecting title thereto may register his interest in the register of the aircraft at any time prior to the or at any time after the registration of a mortgage but only with the written consent of the mortgagee.

(4) A lessee having rights to an aircraft or any part, appurtenance or accessory of an aircraft may register his interest in the register of the aircraft at any time prior to the registration of a mortgage.

(5) The registration of such a special privilege, charge or reservation of ownership rights or of lessee rights prior to the registration of a mortgage shall preserve the rights of the person referred to in the preceding sub-articles, on the aircraft or that part, appurtenance or accessory in relation to any subsequent mortgage.

(6) A reservation of ownership rights registered on an aircraft or a part, appurtenance or accessory shall be cancelled upon production by the owner of a receipt for the price and other charges relative to the transfer of an aircraft or such part, appurtenance or accessory, and the Director General, upon production of such receipt duly signed and attested to his satisfaction, shall make an entry in the Malta Aircraft Register to the effect that the reservation of ownership rights has been cancelled.

(7) When a lease which is noted in the Register is terminated for any reason, the record thereof shall be removed by the Director General upon production of such documents as may be prescribed which demonstrate such termination to his satisfaction.

(8) The transfer of the interest of any creditor enjoying a reservation of ownership or lessee rights registered in terms of this article may, on the production of proof to the satisfaction of the Director General, be recorded by the Director General who shall enter in the register the name of the transferee and shall by memorandum under his hand notify on the instrument of transfer that it has been recorded by him.