Cap. 503 Art. 33BVesting of aircraft object in satisfactionbyway of set-off.

(1)This article applies at any time after a default has occurred and notice in writing thereof has been given to the debtor.

(2) The mortgagee, other preferred creditors and the mortgagor may agree that ownership of (or any other interest of the mortgagor, including any lessor rights) any aircraft covered by the mortgage shall vest in the mortgagee in or towards satisfaction of the secured obligations.

(3) Irrespective of any agreement under the preceding sub-article, the court may, on the application of the mortgagee, order that ownership of (or any other interest of the mortgagor) any aircraft covered by the mortgage is to vest in the mortgagee in or towards satisfaction of the secured obligations.

(4) The court shall grant an application under the preceding sub-article only if the amount of the secured obligations, after taking into account any payment to be made by the mortgagee to any of the preferred creditors, to be satisfied by such vesting is more than the value of the aircraft.

(5) At any time before the sale of the mortgaged aircraft or the making of an order under sub-article (3), the mortgagor or any interested person may discharge the mortgage by paying in full the amount secured, and any amount paid by the mortgagee to any of the preferred creditors, subject to any lease granted by the mortgagee pursuant to its powers under article 33(1)(d).

(6) Where, after such default, the payment of the amount secured, and any amount paid by the mortgagee to any of the preferred creditors, is made in full by an interested person other than the debtor, that person is subrogated to the rights of the mortgagee.

(7) Ownership or any other interest of the mortgagor passing on a sale to a third party under article 33(1)(b) or passing to the mortgagee under sub-article (2) or (3) of this article shall be free from any other interest over which the mortgage has priority under the provisions of this Act.

(8) The mortgagee may designate a fully owned subsidiary or a controlled entity in which the ownership of the aircraft (or any other interest of the mortgagor) may be vested for the purposes of this article.

(9) The provisions of articles 358 to 364 of the Code of

Organization and Civil Procedure shall apply to any applications to the court under sub-article (3), mutatis mutandis.