Cap. 503 Art. 61Administrative sanctions.

(1) Notwithstanding any other provision of this Act, the offences listed in the First Column of the Sixth Schedule shall be administrative offences punishable by the Authority.

(2) The imposition by the Authority of an administrative sanction in terms of this article shall be without prejudice to any other consequences of the act or omission of the offender under civil or administrative law.

(3) The Authority shall observe the guarantees of fair and public hearing in its determination as to whether a person is guilty of an administrative offence in terms of this article.

(4) When the Authority is satisfied that a person has committed an offence against any provision of this Act listed in the First Column of the Sixth Schedule to this Act, the Authority may -

(a) issue a warning in writing to such person; or

(b) impose an administrative penalty on such person up to an amount as established in the Second Column of the Sixth Schedule and subject to the provisions of paragraph 1 of the said Schedule:

Provided that if such person is found guilty of more than one offence in the same charge, the Authority shall only impose the payment of the higher penalty attributed to the offence in the same charge as listed in the Sixth Schedule: Provided further that the Authority may also impose a suspended penalty which penalty shall be paid within such period as the Authority may establish. The Authority may also determine such conditions, limitations and restrictions both with regard to the penalty and the suspended penalty as it may deem fit. FIRST SCHEDULE

(Articles 2, 4, 26, 28, 29, 30, 31, 32, 33, 39, 45, 50, 52, 53, 54, 55 THE IMPLEMENTING LAW IN RESPECT OF THE CAPE TOWN CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT AIRCRAFT PROTOCOL THERETO

PREAMBLE AWARE of the need to acquire and use aircraft equipment of particular economic significance and to facilitate the financing of the use of such equipment in an efficient manner,

RECOGNISING the advantages of asset-based financing and leasing purpose and desiring to facilitate these types of transaction by establishing to govern them, MINDFUL of the need to ensure that interests in such equipment and protected universally, DESIRING to provide broad and mutual economic benefits for parties, BELIEVING that such rules must reflect the principles underlying financing and leasing and promote the autonomy of the parties necessary transactions, CONSCIOUS of the need to establish a legal framework for interests in such equipment and for that purpose use of an international system for their protection,

MINDFUL of the principles and objectives of the Convention on Civil Aviation, signed at Chicago on 7 December 1944,

Malta has promulgated the following implementing legislation ("this relating to its accession to the Convention on International Interests Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment: CHAPTER I

Sphere of application and general provisions Article 1 Definitions

In this Schedule, references to "this Act" are references to the principal which this Schedule is annexed and except where the context otherwise following terms are employed with the meanings set out below:

(a) "agreement" means a security agreement, a title reservation or a leasing agreement;

(b) "aircraft" means aircraft as defined for the purposes of Convention which are either airframes with aircraft engines thereon or helicopters;

(c) "aircraft engines" means aircraft engines (other than military, customs or police services) powered by jet turbine or piston technology and:

(i) in the case of jet propulsion aircraft engines, have of thrust or its equivalent; and

(ii) in the case of turbine-powered or piston-powered aircraft have at least 550 rated take-off shaft horsepower or its equivalent, together with all modules and other installed, incorporated or attached accessories, parts and equipment and all data, manuals and records relating thereto; "aircraft objects" means airframes, aircraft engines and helicopters; "aircraft register" means the National Aircraft Registry or another register maintained by a State or common mark registering authority for purposes of the Chicago Convention; "airframes” means" airframes (other than those used in military, customs and police services) that, when appropriate aircraft engines are installed thereon, are type certified by the competent aviation authority transport:

(i) at least eight (8) persons including crew; or

(ii) goods in excess of 2750 kilograms, together with all installed, incorporated or attached accessories, parts and equipment (other than aircraft engines), and all data, manuals and records relating thereto; "assignment" means a contract which, whether by way of security or otherwise, confers on the assignee associated rights with or without a transfer of the related international interest; "associated rights" means all rights to payment or other performance by debtor under an agreement which are secured by or associated with the aircraft object; "authorised party" means the party referred to in Article 25(3); "Cape Town Convention" means the Convention on International Interests in Mobile Equipment as modified by the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment, each concluded at Cape Town, South Africa on 16 November 2001; "Cape Town Convention State" means any State that is party to the Cape Town Convention; "Chicago Convention" means the Convention on International Civil Aviation, signed at Chicago on 7 December 1944, as amended, and its Annexes; "commencement of the insolvency proceedings" means the time at which the insolvency proceedings are deemed to commence under the applicable insolvency law; "common mark registering authority" means the authority maintaining a register in accordance with Article 77 of the Chicago Convention as implemented by the Resolution adopted on 14 December 1967 by the Council of the International Civil Aviation Organization on nationality and registration of aircraft operated by international operating agencies; "conditional buyer" means a buyer under a title reservation agreement; "conditional seller" means a seller under a title reservation agreement; "contract of sale" means a contract for the sale of an aircraft object by a seller to a buyer which is not an agreement as defined in (a) above; "court" means a court of law or an administrative or arbitral tribunal established by a Cape Town Convention State;

(s) "creditor" means a chargee under a security agreement, seller under a title reservation agreement or a lessor under agreement;

(t) "debtor" means a chargor under a security agreement, buyer under a title reservation agreement, a lessee under agreement or a person whose interest in an aircraft object by a registrable non-consensual right or interest;

(u) "de-registration of the aircraft" means deletion or removal registration of the aircraft from its aircraft register in accordance the Chicago Convention;

(v) "guarantee contract" means a contract entered into by guarantor;

(w) "guarantor" means a person who, for the purpose performance of any obligations in favour of a creditor security agreement or under an agreement, gives or issues or demand guarantee or a standby letter of credit or any credit insurance;

(x) "helicopters" means heavier-than-air machines (other than military, customs or police services) supported in flight reactions of the air on one or more power-driven rotors on vertical axes and which are type certified by the competent authority to transport:

(i) at least five (5) persons including crew; or

(ii) goods in excess of 450 kilograms, together with all installed, incorporated or attached accessories, and equipment (including rotors), and all data, manuals relating thereto;

(y) "insolvency administrator" means a person authorised to reorganisation or liquidation, including one authorised basis, and includes a debtor in possession if permitted by insolvency law;

(z) "insolvency proceedings" means bankruptcy, liquidation collective judicial or administrative proceedings, including proceedings, in which the assets and affairs of the debtor control or supervision by a court for the purposes of reorganisation liquidation;

(aa) "insolvency-related event" means:

(i) the commencement of the insolvency proceedings;

(ii) the declared intention to suspend or actual payments by the debtor where the creditor’s right insolvency proceedings against the debtor or to exercise under this Act is prevented or suspended by law or

(bb) "interested persons" means:

(i) the debtor;

(ii) any guarantor;

(iii) any other person having rights in or on the aircraft

(cc) "international interest" means an interest held by a creditor Article 2 applies; "International Registry" means the international registration facilities established by the Cape Town Convention; "leasing agreement" means an agreement by which one person (the lessor) grants a right to possession or control of an aircraft object (with without an option to purchase) to another person (the lessee) in return a rental or other payment; "National Aircraft Register" means the Malta Aircraft Register of Malta; "non-consensual right or interest" means a right or interest conferred under the law of a Cape Town Convention State to secure the performance of an obligation, including an obligation to a State, State entity or an intergovernmental or private organisation; "pre-existing right or interest" means a right or interest of any kind in or an aircraft object created or arising before the effective date of this Schedule, as specified in Article 56 of this Schedule; "primary insolvency jurisdiction" means the Cape Town Convention State in which the centre of the debtor’s main interests is situated, which for this purpose shall be deemed to be the place of the debtor’s statutory seat or, if there is none, the place where the debtor is incorporated or formed, unless proved otherwise; "priority non-consensual right or interest" means a non-consensual right interest conferred under the law of Malta of the following types:

(i) judicial costs incurred in respect of the sale of the aircraft and the distribution of the proceeds thereof pursuant to the enforcement of any mortgage or other executive title;

(ii) fees and other charges due to the Director General arising under applicable law of Malta in respect of the aircraft;

(iii) wages due to crew in respect of their employment on the aircraft;

(iv) any debt due to the holder of a possessory lien for the repair, preservation of the aircraft to the extent of the service performed on and value added to the aircraft;

(v) the expenses incurred for the repair, preservation of the aircraft to the extent of the service performed on and value added to the aircraft; and

(vi) wages and expenses for salvage in respect of the aircraft. "proceeds" means money or non-money proceeds of an aircraft object arising from the total or partial loss or physical destruction of the aircraft object or its total or partial confiscation, condemnation or requisition; "prospective assignment" means an assignment that is intended to be made in the future, upon the occurrence of a stated event, whether or not the occurrence of the event is certain; (mm)"prospective international interest" means an interest that is intended to created or provided for in an aircraft object as an international interest in the future, upon the occurrence of a stated event (which may include the debtor’s acquisition of an interest in the aircraft object), whether or not the occurrence of the event is certain; "prospective sale" means a sale which is intended to be made in the future, upon the occurrence of a stated event, whether occurrence of the event is certain;

(oo) "registered" means registered in the International Registry Cape Town Convention;

(pp) "registered interest" means an interest registered with the Registry pursuant to the Cape Town Convention;

(qq) "registrable non-consensual right or interest" means a right or interest conferred under the law of Malta of the following

(i) taxes, duties and/or levies due to the Government respect of the aircraft;

(ii) wages and expenses for assistance or recovery in aircraft;

(rr) "Registrar" means the person or body serving as Registrar Cape Town Convention;

(ss) "registry authority" means the Maltese Director General Aviation as the authority maintaining a National Aircraft which is responsible for the registration and de-registration aircraft in Malta in accordance with the Chicago Convention;

(tt) "regulations" means regulations made or approved by the Authority pursuant to the Cape Town Convention;

(uu) "sale" means a transfer of ownership of an aircraft object contract of sale;

(vv) "secured obligation" means an obligation secured by a security

(ww) "security agreement" means an agreement by which a chargor agrees to grant to a chargee an interest (including an ownership in or over an aircraft object to secure the performance of future obligation of the chargor or a third person;

(xx) "security interest" means an interest created by a security

(yy) "State of registry" means, in respect of an aircraft, the national register of which an aircraft is entered or the State of the common mark registering authority maintaining register;

(zz) "Supervisory Authority" means the body acting as Authority under the Cape Town Convention;

(aaa) "title reservation agreement" means an agreement for aircraft object on terms that ownership does not pass until the condition or conditions stated in the agreement;

(bbb) "unregistered interest" means a consensual interest or non-consensual right or interest (other than a priority non-consensual right the extent specified in Article 45(1)) which has not been whether or not it is registrable under the Cape Town Convention Act; and

(ccc) "writing" means a record of information (including communicated by teletransmission) which is in tangible and is capable of being reproduced in tangible form on occasion and which indicates by reasonable means a person’s of the record. Article 2

The international interest Act provides for the constitution and effects of an international interest objects and associated rights. purposes of this Schedule, an international interest in aircraft objects constituted under Article 10, in airframes, aircraft engines or granted by the chargor under a security agreement; vested in a person who is the conditional seller under a title reservation agreement; or vested in a person who is the lessor under a leasing agreement.

falling within sub-paragraph (a) does not also fall within sub-or (c).

applicable law determines whether an interest to which the preceding applies falls within sub-paragraph (a), (b) or (c) of that paragraph.

international interest in an aircraft object extends to proceeds of that

Article 3 Sphere of application Act applies when, at the time of the conclusion of the agreement providing for the international interest or a contract of sale, the debtor or applicable, is situated in a Cape Town Convention State. fact that the creditor or buyer is situated in a non-Cape Town State does not affect the applicability of this Act. Without prejudice to paragraph 1 of this Article, this Schedule shall also relation to a helicopter, or to an airframe pertaining to an aircraft, registered register of a Cape Town Convention State which is the State of registry, such registration is made pursuant to an agreement for registration of the deemed to have been effected at the time of the agreement. Article 4 Where debtor or seller is situated purposes of Article 3(1), the debtor or seller is situated in any Cape Convention State:

under the laws of which it is incorporated or formed; where it has its registered office or statutory seat; where it has its centre of administration; or where it has its place of business. reference in sub-paragraph (d) of the preceding paragraph to the debtor’s business shall, if it has more than one place of business, mean its principal business or, if it has no place of business, its habitual residence.

Article 5 Interpretation and applicable law interpretation of this Schedule, regard is to be had to its purposes as set forth in the preamble, to its international character and to the need uniformity and predictability in its application.