The Cape Town Convention: Extension to the Cayman Islands Ratified by UK
29 Jul 2015
The Cayman Islands government has been preparing for the extension of the Cape Town Convention by passing enabling legislation entitling the Cayman Islands to international recognition as a territorial unit of a contracting state to the Cape Town Convention and to recognition of the declarations deposited by the UK government on behalf of the Cayman Islands government with the International Institute for the Unification of Private Law acting as depository pursuant to Article 62(1) of the Cape Town Convention and Article XXXVII(1) of the Protocol – UNIDROIT.
As extended to the Cayman Islands, the Cape Town Convention will meet the requirements for the Cayman Islands to have made qualifying declarations as defined in the OECD Aircraft Sector Understanding.
"This is a long awaited positive development and gives financiers and development banks extra comfort that security granted by Cayman companies over aircraft will benefit from the Cape Town Convention protections," said Mark Western, Global Head of Asset Finance at Maples and Calder.
"We have been pleased to advise leasing companies, airlines and banks from our offices around the globe on building innovative structures to help them meet their aircraft funding requirements, with MaplesFS providing corporate administration and independent directors to on and off balance sheet special purpose vehicles used in those structures. This will certainly give airlines, leasing companies and financiers extra comfort in successfully structuring transactions using Cayman entities where it is helpful."
In addition, as stated in our previous update, MaplesFS Dublin, working with all offices of Maples and Calder globally, is authorised as a Professional User Entity (PUE) on the International Registry of Mobile Assets and provides Cape Town Convention services to both Irish and non-Irish incorporated entities, even where MaplesFS Dublin is not directly involved in the transaction.
Managing Partner British Virgin Islands
T: +1 284 852 3027
Partner Cayman Islands
T: +1 345 814 5248
T: +971 4 360 4074
T: +44 20 7466 1712
T: +44 20 7466 1612
Of Counsel Singapore
T: +65 6922 8401