Cape Town Convention Finally Sees Its Way To Turkey

Turkey has ratified the Cape Town Convention on International Interests in Mobile Equipment (the "Convention") and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the "Protocol") on 29 March 2011, with effect from 4 July 2011.

The Convention and Protocol intends to promote certainty and transparency in cross-border aviation financings by eliminating the uncertainties and problems that the creditors face under the laws of various jurisdictions, particularly with respect to the default or insolvency of the borrowers. Creditors also often find it difficult to locate aircraft when they need to enforce their rights on the aircraft as collateral, as the aircraft are fl ying in and out of countries on a daily basis. Needless to say, these factors create additional costs to the aircraft financing transactions, let alone being cumbersome and time consuming.