The Cape Town Treaty created the International Registry of Mobile Assets (IR), which went into effect in the U.S. on March 1, 2006. This electronic system records legal interests in certain “aircraft objects,” including airframes, aircraft engines, and helicopters. By registering interests at the IR, parties can establish the priority of their interests, which is determined on a first-to-register basis. Note that the treaty does not cover items such as propellers, avionics, or other parts and accessories.

The Cape Town Treaty does not apply to all transactions. As with the FAA, there are criteria and requirements necessary to determine whether an interest or an aircraft is applicable to be registered at the IR. If the interest is eligible but not registered, your lien or interest will not be perfected and you may be at risk for legal problems at a later date.

As part of our mission to provide an excellent client experience, we offer International Registry Administrator Services for parties seeking to register as a Transacting User Entity (TUE). We work with clients to help them obtain all the necessary permissions to register their interests at the IR, then become authorized to register on behalf of the client. This service allows our office to grant or deny registrations and authorizations approved by the entity for an unlimited number of transactions for as long as the user license is current and valid.

As a protocol matter, this service is invaluable to parties that may not be able to log on to the International Registry website when closings occur in order for international interests to be registered on a priority basis.