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 actors in international law. It is usually made by and between sovereign states, but can include international organizations
An international organization or international o ...
intended to standardize transactions involving movable property. The treaty creates
international standard
international standard is a technical standard developed by one or more international standards organizations. International standards are available for consideration and use worldwide. The most prominent such organization is the International Or ...
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 makin ...
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'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...
and conditional sales contracts, and various legal remedies for
default in financing agreements, including
repossession
Repossession, colloquially repo, is a "self-help" type of action, mainly in the United States, in which the party having right of ownership of the property in question takes the property back from the party having right of possession without in ...
and the effect of particular states'
bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
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, while the others are not in effect.
The treaty resulted from a diplomatic conference held in
Cape Town
Cape Town ( af, Kaapstad; , xh, iKapa) is one of South Africa's three capital cities, serving as the seat of the Parliament of South Africa. It is the legislative capital of the country, the oldest city in the country, and the second largest ...
,
South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
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:
Ethiopia
Ethiopia, , om, Itiyoophiyaa, so, Itoobiya, ti, ኢትዮጵያ, Ítiyop'iya, aa, Itiyoppiya officially the Federal Democratic Republic of Ethiopia, is a landlocked country in the Horn of Africa. It shares borders with Eritrea to the ...
,
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
,
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
,
Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
,
Oman
Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of t ...
,
Panama
Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Cos ...
,
Pakistan
Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a population of almost 24 ...
, and the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
.
Signatures and ratifications
As of 2018, the convention has been ratified by 77 states as well as the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
. The railway rolling stock and the space protocols have been ratified by respectively three countries (Gabon, Luxembourg and Sweden), as well as the European Union, and no countries and thus have not taken effect. 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
Regional Economic Integration Organization
In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and the interaction of humanity and t ...
. On the subject of the convention, both the
Member states of the European Union and the Union itself have competence: e.g. while the
substantive law
Substantive law is the set of laws that governs how members of a society are to behave.Substantive Law vs. Procedural Law: Definitions and Differences, Study.com/ref> It is contrasted with procedural law, which is the set of procedures for making, ...
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. This body of law deals with three broad t ...
-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
Regional Economic Integration Organization
In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and the interaction of humanity and t ...
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
The High Court ( ga, An Ard-Chúirt) of Ireland is a court which deals at first instance with the most serious and important civil and criminal cases. When sitting as a criminal court it is called the Central Criminal Court and sits with judg ...
. As of 2022, the protocol has 81 contracting parties, which includes 80 states and the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
.
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").
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 requires 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, Switzerland, Sweden, the UK as well as the European Union, while it has been ratified by the European Union and 3 states: Gabon, Luxembourg 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
*Treat
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ratifications*Aircraft protoco
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ratifications*Railway rolling stock protoco
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ratifications*Space Assets protoco
textsignatures;Aircraft Protocol
International Registry of Mobile Assets*
Charles W. Mooney Jr.
Charles ("Chuck") W. Mooney Jr. (born August 13, 1947) is the Charles A. Heimbold, Jr. Professor of Law at the University of Pennsylvania Law School, as well as the former interim Dean of the law school.
Education and law practice
Mooney was b ...
"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
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2001 in South Africa
November 2001 events in South Africa