The Cape Town Convention on International Interests in Mobile Equipment, or Cape Town Treaty, is an international

treaty A treaty is a formal, legally binding written agreement between sovereign states and/or international organizations that is governed by international law. A treaty may also be known as an international agreement, protocol, covenant, convention ...

intended to standardize transactions involving movable property. The treaty creates

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s for registration of contracts of sale (including dedicated registration agencies),

security interest In finance, a security interest is a legal right granted by a debtor to a creditor over the debtor's property (usually referred to as the '' collateral'') which enables the creditor to have recourse to the property if the debtor defaults in m ...

s (

lien A lien ( or ) is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the ''lienee'' and the pers ...

s),

leases A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the Lessor (leasing), ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are l ...

and conditional sales contracts, and various legal remedies for

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in financing agreements, including

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and the effect of particular states'

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laws. Four protocols to the convention are specific to four types of movable equipment: Aircraft Equipment (aircraft and aircraft engines; signed in 2001), railway rolling stock (signed in 2007), space assets (signed in 2012) and "Mining, Agricultural and Construction Equipment" (signed in 2019). The aircraft Protocol entered into force in 2006, and the railway rolling stock Protocol entered into force in 2024. The others are not yet in effect. The treaty resulted from a diplomatic conference held in

Cape Town Cape Town is the legislature, legislative capital city, capital of South Africa. It is the country's oldest city and the seat of the Parliament of South Africa. Cape Town is the country's List of municipalities in South Africa, second-largest ...

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in 2001. The conference was attended by 68 countries and 14 international organizations. 53 countries signed the resolution proposing the treaty. The treaty came into force on 1 March 2006, and has been ratified by 57 parties. The Aircraft Protocol (which applies specifically to aircraft and aircraft engines) took effect on 1 March 2006 when it was ratified by 9 countries:

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, and the

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Signatures and ratifications

As of 2024, the convention has been ratified by 87 states as well as the

European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...

. Most of those parties are also party to the Aircraft protocol. The railway rolling stock Protocol has been ratified by four countries (Gabon, Luxembourg, Spain and Sweden), as well as the European Union and came into effect in March 2024. The space assets Protocol has been acceded to by 1 country and remains not in force. An overview of the status of the treaty and protocols is shown below:

European Union

The European Union joined the convention and the Aircraft Protocol as a

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. On the subject of the convention, both the

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and the Union itself have competence: e.g. while the

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regarding

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...

is regulated by the states, the

conflict of law Conflict of laws (also called private international law) is the set of rules or laws a jurisdiction applies to a case, transaction, or other occurrence that has connections to more than one jurisdiction."Conflict of Laws", ''Black's Law Diction ...

-rules (which county has jurisdiction etc.) is regulated by the European Union. According to the Government of the Netherlands the acceptance of the European Union in a member state which itself is not a party to the convention has no practical consequences. The European Union ratified the Luxembourg Rail protocol in December 2014 as a

on the same basis.

Protocols

Aircraft Protocol

The ''aircraft Protocol'' (officially: ''Protocol to the Convention on International Interests in Mobile Equipment on matters specific to aircraft equipment'') was signed immediately with the treaty and the only protocol currently entered into force. It applies to aircraft which can carry at least eight people or 2750 kilograms of cargo, aircraft engines with thrust exceeding or , and helicopters carrying five or more passengers. The

International Registry of Mobile Assets International is an adjective (also used as a noun) meaning "between nations". International may also refer to: Music Albums * ''International'' (Kevin Michael album), 2011 * ''International'' (New Order album), 2002 * ''International'' (The T ...

established to record international property interests in the aircraft equipment covered by the treaty is located in Ireland. Mediation cases for leasing disputes are to be heard in the High Court of Ireland. As of 2022, the protocol has 85 contracting parties, which includes 84 states and the

Railway Rolling Stock

The ''Railway Rolling Stock Protocol'', or ''Luxembourg Rail Protocol'', officially the ''Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock'' was adopted on 23 February 2007 at a diplomatic conference in Luxembourg and applies to railway rolling stock (broadly defined as "vehicles movable on a fixed railway track or directly on, above or below a guideway"). It came into force on 8 March 2024. The protocol establishes an international registry located in Luxembourg at which all international interests under the protocol will be registrable. The registry will also issue unique identifiers for rolling stock on request. Regulis S.A., a subsidiary of SITA, was appointed in November 2014 to act as Registrar. The protocol required ratification by 4 countries, together with a certification by the secretariat to the Supervisory Authority that the registry is fully operational, in order to enter into force. Currently, it has been signed by France, Gabon, Germany, Italy, Luxembourg, Mozambique, South Africa, Spain, Switzerland, Sweden, the UK as well as the European Union, while it has been ratified by the European Union and 6 states: Gabon, Luxembourg, Paraguay, South Africa, Spain and Sweden.

Space Assets

The ''Space Assets protocol'', or ''Berlin Space Protocol'' (officially ''Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Space Assets'') was concluded on 9 March 2012 and requires 10 ratifications before entry into force. The protocol applies to objects functioning in space like satellites or satellite parts. The convention was strongly opposed by the satellite industry, claiming that it would lead to increased bureaucracy and "make the financing of new satellite projects more difficult and expensive". The convention has been signed by 5 countries (Burkina Faso, Germany, Saudi Arabia, United States and Zimbabwe), but no country has ratified it.

Mining, Agricultural, and Construction (MAC) Equipment

On 22 November 2019, a fourth protocol to the convention was adopted to extend the convention's framework to mining, agricultural, and construction (MAC) equipment, named ''Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to mining, agricultural, and construction equipment''. The protocol was signed by 4 states (Congo, Gambia, Nigeria and Paraguay) upon its adoption and requires 5 ratifications before entry into force (provided the registry is operational then). On 1 October 2020, the United States of America signed the MAC Protocol and in 2022 the European Union bringing the total number of signatories to 6

References

External links

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* Charles W. Mooney Jr.
"Contract Practices under the Cape Town Convention
" The Legal Advisory Panel of the Aviation Working Group, Cape Town Papers Series, Volume I, 9 ''Uniform Law Review'' Issue 3, August 2004, Pages 703–04, . *Charles W. Mooney Jr., Marek Dubovec, William Brydie-Watson,
The mining, agricultural and construction equipment protocol to the Cape Town Convention project: The current status
" 21 ''Uniform Law Review'' 2–3, August 2016, Pages 332–60 {{Commercial air travel, state=collapsed ;Luxembourg Rail Protocol
Rail Working Group
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