{"id":124756,"date":"2025-12-31T11:46:39","date_gmt":"2025-12-31T11:46:39","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=124756"},"modified":"2025-12-31T11:46:39","modified_gmt":"2025-12-31T11:46:39","slug":"poland-aviation-finance-leasing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/poland-aviation-finance-leasing\/","title":{"rendered":"Poland: Aviation Finance &amp; Leasing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-124756","comparative_guide","type-comparative_guide","status-publish","hentry","guides-aviation-finance-leasing","jurisdictions-poland"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Wardynski &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/05\/WP_color.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Wardynski &amp; Partners<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/05\/WP_color.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Aviation Finance &amp; Leasing laws and regulations applicable in Poland<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What international aviation conventions has your jurisdiction signed and\/or ratified?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>&#8211; The Warsaw Convention of 1929 on Unification of Certain Rules Relating to International Carriage by Air \u2013 signed and ratified,<br \/>\n&#8211; The Rome Convention of 1933 on the Unification of Certain Rules relating to the Precautionary Arrest of Aircraft \u2013 signed and ratified,<br \/>\n&#8211; The Chicago Convention of 1944 on International Civil Aviation (the Chicago Convention) \u2013 signed and ratified,<br \/>\n&#8211; The International Air Services Transit Agreement of 1944 (IASTA) \u2013 signed and ratified,<br \/>\n&#8211; The Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) \u2013 signed and ratified,<br \/>\n&#8211; The 1960 EUROCONTROL International Convention Relating To CoOperation For The Safety Of Air Navigation (the EUROCONTROL Convention) \u2013 signed and ratified,<br \/>\n&#8211; The Tokio Convention of 1963 on Offences and Certain Other Acts committed on Board of an Aircraft \u2013 signed and ratified,<br \/>\n&#8211; The Hague Convention of 1970 on the Suppression of Unlawful Seizure of Aircraft (Hague Hijacking Convention) \u2013 signed and ratified,<br \/>\n&#8211; The Montreal Convention of 1971 on Suppression of Unlawful Acts against the Safety of Civil Aviation \u2013 signed and ratified,<br \/>\n&#8211; The 1981 Multilateral Agreement relating to Route Charges \u2013 signed and ratified,<br \/>\n&#8211; The 1992 Helsinki Treaty on Open Skies \u2013 signed and ratified,<br \/>\n&#8211; The Montreal Convention of 1999 on Unification of Certain Rules for International Carriage by Air (the Montreal Convention) \u2013 signed and ratified.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If your jurisdiction has signed and ratified the Cape Town Convention: a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention? b. Does the Cape Town Convention take priority over conflicting national law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>N\/A (Poland has not signed the Cape Town Convention)<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will a court uphold the choice of a foreign governing law in respect of the following contracts and if so, please also state any conditions or formality requirements to this recognition a. Lease and b. Security document (for example, mortgage)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Lease<\/h4>\n<p>Polish courts will uphold the choice of a foreign governing law for a lease agreement, subject to below reservations.<\/p>\n<p>As required by the EU Regulation 593\/2008 (\u201cRome I\u201d regulation), Poland will recognize lease as being governed by foreign law and will enforce the legal force that it is assigned under such laws.<\/p>\n<p>However, the mandatory rules (lois de police, e.g. regulatory rules, insolvency laws) of Polish and EU law will apply regardless of the governing law of the contract, and no legal effect ascribed by the governing law will be recognized if it violates Polish public policy (ordre public).<\/p>\n<h4>b. Security document (for example, mortgage)<\/h4>\n<p>Polish courts will, as a rule, uphold the choice of a foreign governing law for security documents, subject to below reservations.<\/p>\n<p>As required by the EU Regulation 593\/2008 (\u201cRome I\u201d regulation), Poland will recognize the security document that create purely contractual (not in rem, i.e. property-like) rights as being governed by foreign law and will enforce the legal force that it is assigned under such laws. However, the mandatory rules (e.g. regulatory rules, insolvency laws) of Polish and EU law will apply regardless of the governing law of the contract, and no legal effect ascribed by the governing law will be recognized if it violates Polish public policy.<\/p>\n<p>Concerning foreign-law securities that purport to create in rem (property-like) rights, the ability to recognize them by Polish courts (and the extent to which it is possible) will depend contemporaneous nationality (jurisdiction of registration) of the aircraft in question at the time of their creation. As a general rule, securities valid under the law of registration of the aircraft will be recognized in Poland, subject to mandatory rules (lois de police) and public policy (ordre public) of Poland.<\/p>\n<p>If the aircraft is re-registered in Poland new in rem securities should be created under Polish law in order to be safely enforceable before Polish courts. Enforceability of foreign-law securities created before re-registration of the aircraft in Poland depends i.a. on disclosing them in the Polish aircraft register.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please confirm whether it is (i) customary and (ii) necessary to also take a local law mortgage and if so, why?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>(i) Yes, it is customary to take the local-law \u2018mortgage\u2019 for aircraft to be registered in Poland and separately for its engines.<\/p>\n<p>(ii) Furthermore, if there is no pre-existing mortgage created before registration in Poland, local-law charge is necessary in order to grant the financing party an enforceable security (see above, re pt B.3.b.).<\/p>\n<p>For full clarity Polish law does not provide for \u2018mortgage\u2019 in the strict sense over an aircraft. Mortgage as understood under Polish law may only charge real estate and a special kind of \u2018sea mortgage\u2019 is allowed for sea ships.<\/p>\n<p>However, the structure and effects of an \u2018aircraft mortgage\u2019 charge are substantially achieved via a \u2018registered pledge\u2019 made under Polish law, which is an in rem right in favour of the creditor enforceable against each contemporaneous owner (i.e. the charge remains in place regardless of transfers of title) and against unsecured creditors enforcing in Poland. It is disclosed both in a public register of pledges kept by the courts and (in case of the aircraft, not the engines) in the civil aircraft register.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign judgments recognized and enforceable by courts of your jurisdiction and if so, please also state any conditions or formality requirements to this recognition (for example, do you require a local court order confirming such recognition)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, judgments of foreign courts are recognized and enforceable without retrial of the merits, subject to limited formalities and narrow exceptions. The specific regulations are slightly different for judgments issued by 1) EU courts and 2) courts from other countries, which further slightly differs for 3) UK, Ukraine and Uruguay (parties to 2019 Hague Judgments Convention).<\/p>\n<p>However, in all cases Polish law recognizes foreign judgments which are valid and final under the law of their jurisdiction of origin and enables denial of recognition or enforcement only in very narrow circumstances such as denial of due process or breach of public policy.<\/p>\n<p>The primary difference is that for judgments coming from EU courts no separate exequatur (declaration of enforceability) procedure in Poland is required and they may be used directly for enforcement. Rulings from other jurisdictions do require grant of exequatur by a Polish court which may be contested by the debtor \/ defendant.<\/p>\n<p>The exact grounds for denial to recognize or enforce also slightly differ depending on the country of origin of the judgment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your aircraft registry an owner-register (registering ownership interests) or an operator-register (registering interests as operator)? Please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a Certificate of Registration)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The aircraft registry is kept and administered by the Civil Aviation Authority of Poland. The registry is primarily an owner-register but the operator\u2019s data also needs to be registered (if different from the owner).<\/p>\n<p>By law the owner remains in control of the registry entry and may register or deregister the aircraft at will, without consent of the operator. Entry of the operator into the register is for informative purposes, it does not grant him \/ her any specific rights and always requires consent from the owner.<\/p>\n<p>Registry entry includes data regarding type, make, serial number (MSN) and registry marks of the aircraft (airframe). The entry also contains information about collaterals including the secured creditor.<\/p>\n<p>The registration process is multi-step due to the need to obtain a radio frequency license from a separate authority. As a result the process is generally as follows:<\/p>\n<p>1) Reservation of registration marks by the CAA &#8211; this already requires disclosing information about the owner, operator, aircraft and the number of export certificate of airworthiness (if imported from outside the EASA area); despite this the mere reservation of a call sign does not entitle the holder to fly the aircraft.<\/p>\n<p>2) Obtaining a radio frequency license from the Polish telecommunications authorities.<\/p>\n<p>3) Entering the aircraft under the reserved registration marks and granted radio frequency license into the aircraft registry kept by the CAA \u2013 this requires submitting documents: proving title to the aircraft (bill of sale) and right to use it by the operator (if different from the owner), Certificate of Airworthiness (CoA), certificate of deregistration from the former registry, insurance policy, certificate of payment of VAT (or statement that VAT is not charged).<\/p>\n<p>Registration is confirmed by issuance of a Certificate of Registration (CoR) conforming to ICAO standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a security document register in your jurisdiction where a mortgagee\u2019s interests will be recorded? If so, please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a certificate or official stamp on the security document)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Securities on an aircraft (airframe) are generally registered in the aircraft registry. That includes securities established under foreign law.<\/p>\n<p>The Polish-law \u2018registered pledge\u2019 \u2013 which performs the function of local-law aircraft mortgage \u2013 is additionally registered in a registry of pledges kept by the Polish court. The registry is public and the fact of registration is confirmed by a formal court order to this effect.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the effect of registration of: a. Ownership interest (for example, proof of title to third parties of ownership) b. Lease (for example, perfects the status of the Lessor under the Lease) c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Ownership interest (for example, proof of title to third parties of ownership)<\/h4>\n<p>Interests entered into the registry are presumed to be true, publicly known and become effective against third parties on registration<\/p>\n<h4>b. Lease (for example, perfects the status of the Lessor under the Lease)<\/h4>\n<p>Leases as such are not registered. Their existence may be inferred from the fact that an operator other than the owner is registered. Due to the public nature of the registry this can serve as notice to third parties of the operator\u2019s right to use the aircraft with consent of the owner.<\/p>\n<h4>c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h4>\n<p>Entry of securities into the aircraft registry is primarily for informative purposes and serves as public notice to third parties.<\/p>\n<p>Priority of creditors is a complex matter governed primarily by civil procedure and insolvency laws. As a general rule securities perfected earlier have priority towards later ones, and towards unsecured creditors. However, Polish law provides for several classes of statutorily privileged creditors such as employees and tax authorities, who may enjoy priority over secured creditors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of lease are recognized in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Both finance leases and operating leases are recognized, the latter including both dry and wet (ACMI) leases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required to perfect Lessor\u2019s rights under a lease in your jurisdiction (for example, translation, notarization, apostille, legalization etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific perfection requirements for lease agreements under Polish law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the ownership rights relating to engines recognized as separate and distinct from the ownership of the rest of the aircraft in your jurisdiction? Please highlight any separate registration, filing or additional formalities that are required to be completed to perfect Lessor\u2019s interest in the engines<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The question of title to engines whilst they remain on wing is unsettled under Polish law.<br \/>\nThe prevailing pragmatic approach is to treat them as an integral part of the aircraft (while they remain attached to the airframe) for ownership purposes but to view the engines as capable of being charged with separate collaterals.<\/p>\n<p>While title to engines is not separately registrable in the aircraft registry, registered pledges (the local-law equivalent of aircraft mortgage) can be charged separately onto the engines and the airframe, and that is indeed the market standard.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What form does security over aircraft generally take in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The \u2018registered pledge\u2019 under Polish law acts as the local-law equivalent of aircraft mortgage, as the latter is reserved for real property and seacraft.<\/p>\n<p>Like mortgage, the registered pledge is an in rem interest (i.e. effective against all future owners and third parties such as other creditors) giving the secured creditor rights and the ability to foreclose on the pledged aircraft in case of default by the debtor, with priority over unsecured and unprivileged creditors or over securities with lower seniority.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular terms or characteristics that such a security document must take (for instance, a cap on the secured liabilities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The pledge agreement needs to be in writing in order to be valid and has to be perfected by registration at the court registry of pledges.<\/p>\n<p>The pledge agreement needs to be dated, name the creditor and debtor, identify the subject of pledge and the secured liability, including a cap (maximum secured amount).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any perfection requirements for such security document? If so, please state any conditions, procedural steps, formality requirements or documentation (for example, corporates, list of directors etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The \u2018registered pledge\u2019 has to be formally recorded in the court registry of pledge for perfection. This requires filing an application with appended pledge agreement (conforming to requirements set forth in pt 13 and general requirements for validity of agreements under Polish law) and paying a modest stamp duty.<\/p>\n<p>There is also a duty to disclose it in the Polish Register of Civil Aircraft but that is not strictly required for perfection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Summarize any captive insurance regime in your jurisdiction as applicable to aviation.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no specific, separate regime for captive insurance applicable to aviation. All captive insurance (and reinsurance) structures are subject to the same general insurance &amp; reinsurance regime which is primarily set down by EU law.<\/p>\n<p>Captive insurance is rarely used on the Polish market, mostly in the energy sector. We are not aware of any Polish operators using this form of insurance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are cut-through clauses under the insurance and reinsurance documentation legally effective in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum requirements for the amount of third-party liability cover that must be in place in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Requirements for the amount of third-party liability cover are regulated in EU Regulation 785\/2004 and in Polish Aviation Act. Generally, the amount depends on the maximum take-off weight of aircraft (MTOM) and is expressed in SDR (special drawing rights).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a mortgagee (or equivalent security interest holder) or lessor following an event of default under a mortgage (or equivalent security document) or lease, respectively, take possession of the aircraft without judicial intervention in your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Repossession of an aircraft (or any other asset) always requires court warrant (writ of enforcement) and such seizure is then conducted by a court bailiff, not by the creditor himself. Self-help remedies are generally not allowed by Polish law and attempts at forceful, contested repossession may incur civil or even penal liability.<\/p>\n<p>However, repossession action can be made more straightforward by a special security instrument in the form of a so-called deed of voluntary submission to execution. Unlike mortgages and pledges, it does not create any collateral per se. Rather it serves as a fast-track procedural measure to enable enforcement of remedies under other instruments (mortgages, pledges, lease agreement etc.) without prior court litigation.<\/p>\n<p>A voluntary submission to execution issued by a debtor as a notarial deed can be made enforceable by court warrant (writ of enforcement) in a short, formal procedure, based on creditor\u2019s declaration of breach \/ default. The court does not review the merits of the claim. There is a modest stamp duty on the motion for attachment of the writ of enforcement.<\/p>\n<p>The deed together with the court warrant can then be presented directly to a court bailiff who can carry out the repossession action.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How can a mortgagee (or equivalent security interest holder), lessor under a lease or designee\/beneficiary of an IDERA deregister the aircraft? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage\/IDERA etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The owner can always deregister the aircraft at will, without the need for consent from the lessee and even against his will. Any persons other than the owner can deregister the aircraft only with the owner\u2019s express written authorization \u2013 a power of attorney.<\/p>\n<p>An important caveat is that the CAA requires that the Certificate of Registration is handed in before deregistration may take place \u2013 and the CoR is usually in the possession of the Lessee due to the need to have it onboard the aircraft. If the Lessee refuses to return the CoR voluntarily this can delay and complicate the process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the government or the lessee lawfully prevent the repossession or deregistration and if so, in what circumstances<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government could conceivably interfere in very rare and exceptional circumstances such as national security concerns, sanctions enforcement or criminal investigations involving the aircraft. In practice we have never seen government interference with lawful repossession of civil aircraft.<\/p>\n<p>The lessee can lawfully try to prevent repossession and \/ or deregistration by questioning their legal grounds under the underlying lease agreement or security instrument. However, assuming repossession is conducted under a deed of voluntary submission to execution (see p. 18 above) that would require the lessee to file a counter-execution lawsuit and convincing the court to temporarily suspend repossession and \/ or deregistration for the duration of the litigation, which is not easily granted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If judicial intervention is required, please describe the process? Please also state any procedural steps, length of time to complete and advise as to documentation required<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>See response to pt. 21. Full counter-execution litigation would take the lessee several years until a final judgment (of a 2nd instance court) is issued. Unless the court suspends execution (repossession) the mere fact of litigation would not stop the repossession action.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is legal title transferred under the laws of your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Transfer of ownership to Aircraft occurs, legally, when the underlying contract (Aircraft Purchase Agreement) takes effect \u2013 no registration or recording is strictly necessary to effect or perfect this.<\/p>\n<p>Any changes in ownership of aircraft on the Polish Register have to be reported to the CAA to update the register entry in order to become effective towards thirds parties (i.e. other than the Buyer and Seller).<\/p>\n<p>The CAA usually accepts the bill of sale as sufficient proof of transfer of title and it can be presented in English. The bill should be presented in the original. The Buyer needs to prove the authorization of person signing the bill of sale to represent the Seller.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the sale of an aircraft following enforcement (for example, the requirement to obtain a court order or conduct a public auction or other action in order to sell the aircraft upon enforcement)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>This depends on the terms of the collateral that was enforced. A Polish-law registered pledge (equivalent of aircraft mortgage) can be enforced in three ways, depending on the choice made in the pledge agreement:<\/p>\n<p>1) By court auction of the pledged asset,<br \/>\n2) By an out-of-court public auction of the pledged asset, conducted by a court bailiff or a notary,<br \/>\n3) By direct foreclosure (lex commissoria), i.e. taking legal title to the pledged asset by the creditor on terms set out in the pledge agreement.<\/p>\n<p>In case of direct foreclosure the creditor (pledgee) is then free to sell the aircraft without restrictions or the need to hold an auction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would lease rentals be subject to tax (for example, withholding or income tax)? Please also state if there are any conditions for such tax to be imposed and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, lease rent would be subject to a 20% withholding tax in Poland, subject to double-tax treaty protection, possibility to apply for preferential treatment and minimal thresholds that are exempt from taxation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would a sale of an aircraft in your jurisdiction incur sales tax? Please also provide details of amount or calculation and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Sale of an aircraft operated by a company engaged in international air traffic enjoys a preferential 0% VAT (sales tax) rate. Otherwise the generally applicable rate is 23%.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of aircraft in your jurisdiction and would such importation or exportation incur any liability as to customs or taxes? Please also state if any consents or approvals are required and the procedural steps taken to obtain these, and any procedural steps or formality requirements to mitigate any taxes<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For purposes of these comments, we have assumed that the question refers to issues related to customs regulations.<\/p>\n<p>Therefore, we understand that the term &#8220;Export of the Aircraft &#8221; is used from the perspective of the Lessor. Consequently, from the perspective of Polish law and the Lessee, it would be an import permit defined in the Polish regulations as an &#8220;End-use permit&#8221;.<\/p>\n<p>We further understand that the Aircraft is not registered in the EU, as in such case a permit is not needed due to the fact that there are no customs charges within EU territory and the contemplated agreement is recognized from the Polish tax perspective as intracommunity purchase of goods.<\/p>\n<p>It is possible to obtain the permit in advance. Generally, the application should be submitted to the appropriate Customs Chamber not later than 30 days before the intended import of the Aircraft.<\/p>\n<p>It takes 30 days from the date of submission of the documents to obtain the permit. The permit is free. The only administrative cost is the cost of the stamp duty for granting of the power of attorney (PLN 17).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any foreign exchange restrictions on transfers of funds<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general there are no exchange restrictions on foreign transfers of funds, unless they are made in cash or would violate sanctions enforced by Poland.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How successful have foreign creditors and lessors been in enforcing their security and lessor rights over and successfully repossessing aircraft in a timely manner?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In our experience foreign creditors and lessors have been successful in enforcing their security and lessor rights, even in cases of airline bankruptcy. We are not aware of any situation in which repossessing an aircraft would not be successful.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What government led reforms affecting creditor and lessor rights are currently underway in the aviation sector in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Currently there are no government led reforms that would affect creditor and lessor rights in the aviation sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe any interesting legal development in your jurisdiction (for instance, decided court cases or arbitral awards) which affect creditor and lessor rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Aviation transactions are virtually not litigated in Poland at all.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please discuss any relevant governmental regulations implemented in your country to help alleviate the financial and other difficulties faced by airlines in your jurisdiction caused by CoVid 19 and whether that will impact rights of lessors (who lease aircraft to the airlines) and lenders (who finance such aircraft which are mortgaged in favour of the lenders)? Are such governmental regulations expected to be in place until the difficulties faced by airlines caused by the CoVid 19 subside or are they more long term?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Polish government implemented many regulations to help alleviate the difficulties faced by entrepreneurs, including those operating in the aviation sector. Most of those regulations are no longer in force. Rights of lessors or creditors were not impacted by said regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4073<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/124756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=124756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}