The Oklahoma Bar Journal October 2024

CAPE TOWN TREATY AND AIRCRAFT PROTOCOL On March 1, 2006, the United States adopted the Cape Town Treaty and Aircraft Protocol (CTT). 1 Now a substantial number of countries (defined as “contracting states”) are parties to the CTT. 2 This is a significant change in the area of aircraft financing. By adopting the CTT, the contracting states agree to recognize interests perfected pursuant to the CTT. 3 Prior to that time, countries were not required to recognize interests perfected under the laws of other countries.

installed engine must be the subject of its own registration. 9 In adopting the CTT, the United States designated the FAA registry as the point of entry. However, with respect to aircraft engines, the FAA is not a point of entry. 10 This means requirements for point-of-entry reg istrations do not apply to registra tions of interests in aircraft engines. CTT REQUIREMENTS FOR INSTRUMENTS CREATING INTEREST The CTT includes a number of requirements relating to instru ments creating registered inter ests. 11 Included among them are: 1) Writing: For an interest to be eligible for registration under the CTT, it must be created pursuant to a writ ten instrument.

engines and is therefore limited to them. “Aircraft engines” are defined in the CTT as jet propulsion engines of at least 1,750 pounds of thrust and turbine or piston engines of at least 550-rated takeoff horsepower. 7 The thrust and horsepower of aircraft engines can be determined by reference to the type certificate data sheet issued by the FAA for each particular make and model of engine and are available on the FAA’s website. 8 Additional infor mation needed is the manufactur er’s serial number of the particular engine because the CTT deals with specific aircraft engines. Aircraft engines are independent objects for purposes of registrations under the CTT. The registration of an interest in an airframe does not result in the registration of an interest in its installed engines. To be covered by a CTT registration, an

The CTT provides for perfec tion of interests in airframes, aircraft engines and helicopters (defined as “aircraft objects”) 4 created pursuant to “security agreements.” 5 Security agreements are defined to include leases and title reservation agree ments. Interests created pursuant to security agreements are defined as “international interests” in the CTT. In addition, the CTT includes inter ests in aircraft objects created pur suant to a “contract of sale,” which is essentially a bill of sale or its equiva lent. 6 As used herein, “sale” refers to a contract of sale. The CTT provides the only registration system for ownership of aircraft engines.

CTT COVERAGE OF AIRCRAFT ENGINES

Although the CTT covers air frames, aircraft engines and heli copters, this article covers aircraft

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL