On 1st January 2015, the Cape Town Convention and his Aircraft Protocol entered in force in the Republic of San Marino. From this date all the airfinance transactions completed by debtors situated in the Republic of San Marino or involving airframes pertaining to aircrafts therein registered can enjoy the protection given by the international treaty.
Especially, the parties can register their interest on the International Registry (www.internationalregistry.aero) created under the Cape Town Convention in order to give notice to third parties and preserve their conventional priority.
The Cape Town Convention also offers important default remedies, which can be applied by the creditor in so far have been agreed by the debtor, such as, in case of security interest, repossession, sale and grant of lease or application for the profits/incomes arising from the management or use of the object. In case of leasing or title reservation agreement the remedies applicable are termination of the agreement and repossession of the aircraft object.
The Aircraft Protocol provide the additional remedies of the deregistration and export of the aircraft object for the creditor in case of default of the debtor.
Further protection is given by the reliefs pending final determination and the specific procedure in case of insolvency of the debtor.