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Rwanda has established a solid legal framework for aircraft security interests through its ratification of the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol, supported by domestic implementation under Part 35 of the Rwanda Civil Aviation Regulations.
This article provides a concise overview of the regulatory landscape and the key practical considerations when creating, registering and perfecting security interests over aircraft in Rwanda.
Security document (mortgage): form and content
Security interests over aircraft in Rwanda take the form of an international interest under the Cape Town Convention framework. The typical security document is a security agreement, commonly referred to as an aircraft mortgage, by which a chargor grants a chargee an interest in an aircraft object to secure the performance of an obligation.
To create a valid international interest, the security agreement must be in writing, relate to an aircraft object over which the chargor has the power of disposition, enable the aircraft object to be identified, and permit the secured obligations to be determined, without the need to state a fixed or maximum sum.
Identification of the aircraft object requires the manufacturer's serial number, the manufacturer's name and the model designation.
All security documents must be signed in black ink of durable quality and completed in clearly legible writing, print or typescript. Where a partner or officer executes documents on behalf of a partnership, company or other juristic person, the relevant power of attorney must be submitted to the Rwanda Civil Aviation Authority (“RCAA”). An application for a certificate of mortgage must be made using the prescribed form and accompanied by the applicable RCAA fee. Additional fees apply where information is transmitted to the International Registry.
Registration requirements
Registration is essential to perfect a security interest and establish priority against both the debtor and third parties. The RCAA maintains the Register of Aircraft Mortgages and must record the principal particulars of each mortgage, including the details of the parties, a description of the aircraft and the secured amount, within seven days of receipt.
This seven-day recording requirement is a critical milestone. Only interests properly recorded within this timeframe achieve effective perfection and priority. Failure to comply may leave the security interest vulnerable to competing claims. The RCAA also acts as the designated entry point for transmission of information to the International Registry under the Cape Town Convention.
Certification and effect of registration
The RCAA issues certificates of mortgage in the prescribed form set out in the Rwanda Civil Aviation Technical Standards. Once transmitted to the International Registry, registration is complete when the required information is entered into the registry’s database and becomes searchable, indicated by the allocation of a sequential file number and retention of the data in durable form.
A certificate issued by the International Registry constitutes prima facie evidence of the matters it records, providing parties with a high degree of legal certainty.
Registration establishes a clear priority regime. A registered international interest takes priority over any subsequently registered interest and over any unregistered interest, even where the holder of the earlier interest had actual knowledge of the later interest. A buyer under a registered sale acquires their interest free of any subsequently registered or unregistered interest. In insolvency proceedings, a registered international interest remains effective provided it was registered prior to commencement of the proceedings, subject only to certain limited categories of priority non-consensual rights.
Security structure and alteration
Security over aircraft is commonly structured as one of three forms of international interest:
A security agreement (mortgage), under which a chargor grants an interest to secure obligations;
A title reservation agreement (conditional sale), where ownership transfers only on fulfilment of specified conditions; or
A leasing agreement, under which a lessor grants possession or control of the aircraft to a lessee in exchange for rental payments.
An international interest extends to the proceeds of the aircraft object, and priority between competing interests may be varied by agreement between the relevant interest holders.
Where associated rights are assigned in compliance with the formal requirements of the Convention, the assignee acquires the corresponding international interest together with all the assignor's priority rights. Assignments must be in writing, and the debtor is bound once written notice is received and consented to in writing. Assignments may be registered to establish priority as between competing assignees.
Security over spare engines
Aircraft engines are treated as distinct aircraft objects, separate from the airframes on which they may be installed. This reflects the commercial reality that engines are frequently swapped between aircraft and are often financed independently.
Ownership of, or any other interest in, an aircraft engine is not affected by its installation on or removal from an aircraft, offering important protection for engine financiers. For registration purposes, an engine must be identified by its manufacturer's serial number, the manufacturer's name and the model designation.
Conclusion
Rwanda's adoption of the Cape Town Convention framework provides a modern, internationally recognised system for the creation, registration and enforcement of security interests over aircraft. The regime delivers clarity on priority and robust protection for both creditors and debtors.
For aviation stakeholders financing aircraft operations in or through Rwanda, ensuring that security documents comply with formal requirements and that registrations are effected promptly through the RCAA is essential. The separate treatment of aircraft engines further enhances flexibility for engine leasing and financing structures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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