Cap. 503 ст. 42Special privileges on aircraft.

(1) The debts hereunder specified are secured by a special privilege upon the aircraft, as well as 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:

(a) 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;

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

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

(d) 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;

(e) 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

(f) wages and expenses for salvage in respect of the aircraft.

(2) The debts hereunder specified are secured by a special privilege upon the aircraft, as well as any proceeds from any indemnity arising from any mishaps as well as any insurance proceeds, other than from a liability policy, if registered in the International Registry after the effective date:

(a) taxes, duties and, or levies due to the Government of Malta in respect of the aircraft; and

(b) wages and expenses for assistance or recovery in respect of the aircraft.

(3) The debts referred to in sub-article (2) shall constitute a special privilege and enjoy the preference and status of such right in relation to the aircraft only if the claim is created by the owner of the aircraft or a person authorised by him. When such a claim is created by an operator of the aircraft, it shall not affect the aircraft or the owner thereof, and shall only operate in relation to the said debtor and upon the termination of his temporary title and reversion of the aircraft to the owner, the said claim shall be dissolved with regard to the aircraft which shall revert unencumbered to the owner. This article shall apply to a lessor in relation to a lessee, and a sub-lessor to a lessee in the same manner, subject to such modifications as are required due to the context.

(4) Upon the registration of such privileges in the register, the person registering the aircraft, its owner, or operator shall be notified of the registration by the registrant of the privilege.

(5) For the avoidance of doubt, the requirement for registration of the privilege for taxes, duties and levies due to the Government of Malta in sub-article (2)(a) and the specific ranking position of such claim in article 44, shall apply and be binding with reference to such claims notwithstanding the provisions of other special laws of Malta which may govern such claims.

(6) The above provisions shall apply to aircraft engines mutatis mutandis.