Mortgage Introduction

All mortgage of an aircraft are registered locally at the Civil Aviation Authority Register of Aircraft.

The law concerning the registration of aircraft mortgage is Law n. 125 of 29 July 2014 (article 41) as amended by Delegated Decree n. 153/2015.

Document Reference
File EN
File IT
Law No. 125 29 July 2014
Law Reforming Civil Aviation
Delegate Decree No. 153 of 13 October 2015

Registration of a Mortgage

In accordance with art. 41 of Law n. 125 of 29th July 2014, a mortgage of an aircraft registered in the Republic of San Marino may be entered in the CAA MNA SMR Register of Aircraft.

An application to enter a mortgage can be made using FORM SM 81 accompanied by the appropriate fee.

Once the mortgage has been entered in the CAA MNA SMR Register of Aircraft, the CAA MNA SMR will proceed to notify the parties thereof.

Document Reference
File
FORM SM 81
Application for Registration of a Mortgage
FORM SM 81A
Declarations of the transaction parties

Amendment to a Registered Mortgage

In accordance with art. 42 of Law n. 125 of 29th July 2014, any changes to the details originally included on the Mortgage registered with CAA MNA SMR are required to be notified by using Form SM 82.

As this FORM is designed to accommodate any number of changes, the actual change being notified should be detailed in full in the blank space provided.

Once the change is entered in the CAA MNA SMR Register of Aircraft, the CAA MNA SMR will proceed to confirm the date and time of the change either by email or post to the parties thereof.

Document Reference
File
FORM SM 82
Application for Amendment to the Registration of a Mortgage

Cancelation of a Registered Mortgage

A mortgagor may wish to remove a mortgage registered with the CAA MNA SMR when the mortgage has been paid out and the mortgage is legally terminated or when the aircraft has been sold or changes owners and the aircraft is to be deregistered.

In accordance with art. 43 of Law n. 125 of 29th July 2014 a mortgage can be removed by using Form SM 83 accompanied by a copy of the document that gives rise to the cancellation of the mortgage.

In case of recorded IDERA, the mortgaged aircraft cannot be de-registered unless the IDERA has been revocate in accordance with CAR IDERA.

Document Reference
File
FORM SM 83
Application for Cancellation of Registered Mortage

Cancelation of a Mortgaged Aircraft

In accordance with art. 44 of Law n. 125 of 29th July 2014, a mortgagor may request cancellation of a San Marino mortgaged aircraft after submission to the CAA SMR of a written consent of the motgagee.

The written consent must be signed by the person who executed the mortgage agreement or holds a power of attorney on behalf of mortgagee.

The existence of the mortgage shall be recoded in the Certificate of De-registration at the time of cancelation of the aircraft.

Mortgage Search

An application to enquire whether any mortgages or liens are recorded in the CAA MNA SMR Register of Aircraft can be made using FORM SM 109 accompanied by the appropriate fee.

Once the search is completed, the CAA MNA SMR will proceed to notify the results. The search includes details of the registered owner, any mortgages entered on the Register of Aircraft, the parties involved and the date of entry.

Document Reference
File
FORM SM 109
Mortgage Search

Cape Town Convention

On 1st January 2015, the Cape Town Convention and his Aircraft Protocol entered in force in the Republic of San Marino. From this date all the airfinance transactions completed by debtors situated in the Republic of San Marino or involving airframes pertaining to aircrafts therein registered can enjoy the protection given by the international treaty.

Especially, the parties can register their interest on the International Registry (www.internationalregistry.aero) created under the Cape Town Convention in order to give notice to third parties and preserve their conventional priority.

The Cape Town Convention also offers important default remedies, which can be applied by the creditor in so far have been agreed by the debtor, such as, in case of security interest, repossession, sale and grant of lease or application for the profits/incomes arising from the management or use of the object. In case of leasing or title reservation agreement the remedies applicable are termination of the agreement and repossession of the aircraft object.

The Aircraft Protocol provide the additional remedies of the deregistration and export of the aircraft object for the creditor in case of default of the debtor.

Further protection is given by the reliefs pending final determination and the specific procedure in case of insolvency of the debtor.

IDERA Regulation

CAR IDERA provides procedures for:

(a) recording and cancelling an IDERA, and
(b) de-Registering aircraft and exporting aircraft objects under an IDERA.

Once the IDERA is registered the CAA MNA SMR shall deregister and/or cooperate to facilitate the export of aircraft objects within five working days on the request of the creditor as “authorized party” in case of default of the debtor. The aircraft for which there is a recorded IDERA may not be de-registered on the request of the debtor, unless that IDERA is the subject of a revocation.

An Irrevocable De-registration and Export Request Authorisation, Designation of the certified designee, De-Registration and Export Request and IDERA Revocation can be made, respectively, in the Form of Annex 1, 2, 3 or 4.

Document Reference
File
CAR IDERA
Annex 1 to IDERA Regulation
Annex 2 to IDERA Regulation
Annex 3 to IDERA Regulation
Annex 4 to IDERA Regulation
Annex 5 to IDERA Regulation

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