The Cape Town Convention and the Mobile Protocol
The Convention on International Interests in Mobile Equipment (Convention or CIME) was realized in November 2001 in Cape Town and has come into force on April 1st, 2004. The Convention was created to facilitate the financing and acquisition of mobile equipment of high value and to establish a legal framework for international interests in such equipment for that purpose to create an international registration system for their protection. [1] The Convention provides for the constitution and effects of an international interest in certain categories of mobile equipment and associated rights.[2] Under the Convention associated rights is defined as all rights to payment or other performance by a debtor under an agreement which are secured by or associated with the object.[3] The mobile equipment that falls within the scope of the Convention are: (i) airframes, aircraft engines and helicopters; railway rolling stock; and(c) space assets;[4] or (ii) an interest constituted under Article 7 of the Convention.
The Convention provides for an international registration system in which the following rights can be registered: (i) international interests, prospective international interests and registrable non-consensual rights and interests; (ii) assignments and prospective assignments of international interests; (iii) acquisitions of international interests by legal or contractual subrogation under the applicable law; (iv) notices of national interests; and (v) subordinations of interests referred to in the aforementioned rights. [5] The Convention provides for the application of the Convention through one or more Protocols, to objects of any category of high-value mobile equipment other than those mentioned in article 2 (3) of the Convention.[6] The registrar is located in Ireland.
[1] Preamble http://www.unidroit.org/english/conventions/mobile-equipment/mobile-equipment.pdf.
[2] Article 2 http://www.unidroit.org/english/conventions/mobile-equipment/mobile-equipment.pdf.
[3] Article 1 Convention.
[4] Article 2 (3) Convention.
[5] Article 16 Convention.
[6] Article 51 Convention.
