Bermuda & The Cape Town Convention

As of 1 January 2018, Bermuda will be recognised as a territorial unit of a Contracting State (the United Kingdom) for the purpose of the Cape Town Convention on International Interests in Mobile Equipment and its supporting Protocols (the "Cape Town Convention"). The Cape Town Convention gives creditors and financiers greater certainty with respect to the legal framework for financing and security of aircraft.

Key features of the Cape Town Convention are the ability to create an international interest in an aircraft which will be recognised in all Contracting States and the electronic international register for the registration of international interests which will give notice to third parties and enable creditors to preserve their priority against subsequently registered interests and against unregistered interests.

With over 800 aircraft of the Bermuda Register of Aircraft, confirmation by UNIDROIT that the Cape Town Convention will become effective provides aircraft financiers with greater comfort and provides further compelling reasons which point to Bermuda as a jurisdiction of choice for the registration and financing of aircraft.

Jonathan BettsPartner - TaylorsT +1 441 242
Phelecia BarnettAssociate - TaylorsT +1 441 242