Cap. 503 Art. 37Amendment of mortgage.

(1) Where a registered mortgage is amended, the Director

General shall on the production of the instrument of mortgage executed in accordance with the provisions of article 29 containing the amendment, together with the written consent on the said instrument of the mortgagee whose mortgage has been amended, make a note thereof in the Malta Aircraft Register to the effect that the mortgage has been amended, and any such amendment shall form an integral part of the registered mortgage which it amends and such mortgage, as amended, shall continue to have the same priority as it had before the amendment was noted.

(2) Subject to the provisions of this article, an amendment of a mortgage may be effected for any purpose.

(3) Without prejudice to the generality of the foregoing, and subject always to the provisions of sub-articles (4), (5) and (6), an amendment of a mortgage shall be effected for any one or more of the following purposes:

(a) to increase the amount of capital secured by such mortgage. An agreement to vary -

(i) the interest payable, the modalities for the calculation of interest including any rate, indices, margin, or market mechanism; or

(ii) the repayment schedule; or

(iii) the currency in which payment is to be made, shall not be considered as an increase for the purposes of this article; and

(b) to extend such mortgage to secure any other obligation of the debtor, whether as principal or as surety for any other person, in favour of the creditor, except where the new obligation qualifies as a future obligation of the mortgagor to the mortgagee secured by the mortgage being within a maximum sum stated in the relative mortgage instrument and registered in the Malta Aircraft Register.

(4) An amendment of a mortgage may not be effected after the obligation secured by the registered mortgage has been unconditionally discharged.

(5) Where any mortgages other than the one that it is intended to amend, are entered in the Malta Aircraft Register of the aircraft an amendment shall not be noted unless the consent in writing of all the other mortgagees, whose interests may be prejudiced by the amendment, is produced to the Director General.

(6) The consent to an amendment to a mortgage shall be signified by means of a declaration executed by the creditor in the presence of, and attested by, a witness or witnesses.