The Oklahoma Bar Journal October 2024

FINAL THOUGHTS If an aircraft engine is not large enough to be covered by the CTT, what protections are available to a purchaser or lender? There are no public records available in the United States to register ownership interests in small aircraft engines. Anyone representing a purchaser of small engines will need to do all appropriate due diligence. To perfect security interests in such engines, the lender must rely on the Uniform Commercial Code and file financing statements in the bor rower’s appropriate jurisdiction. The best advice to a first-time user of the IR system is to retain a PUE to make any TUE regis trations, determine if the aircraft engine is subject to any outstand ing registrations and register any international interest or sale on the engine that is the subject of a financing or purchase.

ABOUT THE AUTHORS

ENDNOTES

1. Convention on International Interests in Mobile Equipment and Protocol thereto on Matter Specific to Aircraft Equipment, Official Commentary, Fifth Edition, 2022, Sir Roy Goode, published by UNIDROIT. The Cape Town Treaty is in Appendix I, and the Aircraft Protocol is in Appendix II. This publication contains a comprehensive discussion of the CTT by its principal drafter. A copy can be obtained pursuant to ordering instructions on the UNIDROIT website (www.unidroit.org). The following commentary citations refer to this publication. 2. Listed at https://bit.ly/3zw4iKs. 3. Treaty Article 5(1) and (2). 4. Protocol Article I, Section 2(c). 5. Treaty Article l(ii). 6. Protocol Article V. 7. Protocol Article I, Section 2(b). 8. FAA.gov – Dynamic Regulatory System, TCDS. 9. Commentary 12.38. 10. Commentary 12.69. 11. Treaty Article 7; Commentary 12.79 et seq. 12. Protocol Article VII. 13. Treaty Article 3.1 and Article 4; Commentary 12.34. 14. Commentary 13.53. 15. Regulations and Procedures for the International Registry at Appendix Ill of Commentary, Section 21.25 of Regulation Section. 16. Regulations, Section 7. 17. Regulations, Section 21.15. 18. Commentary 13.9. 19. Treaty Article l(y); Commentary 13.11.

Preston G. “Gil” Gaddis II practiced with Crowe & Dunlevy in the firm’s Oklahoma City office. He is credited with building

the firm’s Aviation Practice Group from the ground up, becoming a nationally recognized expert on commercial aircraft financing. Mr. Gaddis died May 23, 2024.

J. Robert “Bob” Kalsu practices with Crowe &

Dunlevy in the firm’s Oklahoma City office. He has concentrated his career on the practice of commercial and business law, aviation title, finance and regulatory law and related matters, most recently of which is the Cape Town Convention.

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.

OCTOBER 2024 | 17

THE OKLAHOMA BAR JOURNAL