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

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

FAQ

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.
Yes, it is possible to register an aircraft mortgage within the CAA MNA SMR Register of Aircraft. The mortgagee’s interest is noted both against the relevant entry of the aircraft on the register itself and on the aircraft’s certificate of registration.
The mortgagee must submit completed and signed Form SM 81 accompanied by a copy of the mortgage agreement signed by the parties and appropriate fee.
CAA MNA SMR fees are:
- Aircraft below 5700 kgs operating CAR OPS 2A Part II € 400.00
- Aircraft below 5700 kgs operating CAR OPS 2A Part I € 250.00
Yes, applicant must submit completed and signed Form SM 109 accompanied by an appropriate fee:
- Aircraft below 5700kgs and Piston Helicopters € 150.00
The CAA MNA SMR will notify the results of the search, which includes details of the registered owner, any mortgages entered on the Register of Aircraft, the parties involved and the date of entry.
Yes. From and including 1 January 2015 Convention on International Interests in Mobile Equipment (the “Cape Town Convention” or the “Convention”), together with Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the “Aircraft Protocol”), each signed at Cape Town, South Africa, on 16 November 2001, was adopted and entered into force in the Republic of San Marino. The Cape Town Convention offers additional protection to the holders of international interests and facilitates the reduction of costs and risks associated with cross-border aircraft finance and leasing transactions.
The Republic of San Marino has made all of the “qualifying declarations” under Annex 1 to the OECD 2011 Aircraft Sector Understanding in order to create a more competitive legal framework. In particular:
- Pursuant to Article 54(2) of the Cape Town Convention, the Republic of San Marino has opted to allow default remedies without requiring the leave of the Court (i.e. so-called “self-help” remedies are permitted);
- Pursuant to Article X of the Aircraft Protocol, the Republic of San Marino has opted to allow availability of relief pending final determination (i.e. “speedy-relief”) is available to the creditors and has chosen a period of 10 working days for the remedies under art. 13, 1 (a) – (c) and 30 working days for the remedies under art. 13, 1 (d) – (e) ;
- Pursuant to Article XIII of the Aircraft Protocol, the Republic of San Marino has opted in to the mechanism providing for an irrevocable de-registration and export request (i.e. “IDERAs”);
- Pursuant to Article VIII of the Aircraft Protocol the parties are free to choose the contractual law governing the agreement constituting the international interest; and
- Pursuant to Article XI of the Aircraft Protocol, the Republic of San Marino has opted for “Alternative A” insolvency procedure with a waiting period of sixty (60) days in order to provide a more definitive insolvency framework for creditors (Alternative A provided by art. XI of the Protocol).
The Republic of San Marino opted for a strong protection in favour of the financiers. In case of debtor’s insolvency, the chargee, following the Alternative A – art. XI of the Protocol, is able to recovery the aircraft in a term not exceeding sixty (60) calendar days after obtaining agreement from the CAA MNA of the Republic of San Marino. The de-registration and export of the aircraft can be obtained within five (5) working days. In addition, a charge duly registered on the International Registry enjoys a high priority over all the others interests as provided by the Cape Town Convention.
Yes. Pursuant to Article 54(2) of the Cape Town Convention and the Republic of San Marino allows creditors to repossess the aircraft and other “aircraft objects” without the leave of the Court.
Yes. Where an IDERA is provided by the registrant of the aircraft in favour of a creditor, it should be addressed to the CAA MNA of the Republic of San Marino.A copy of the executed IDERA must be submitted to the CAA MNA of the Republic of San Marino before CAA MNA will countersign the IDERA
Yes, it is possible to register agreements governed by foreign law.
Normally 24/48 hours if everything is properly submitted.