[108th Congress Public Law 297]
[From the U.S. Government Printing Office]
[DOCID: f:publ297.108]
[[Page 118 STAT. 1095]]
Public Law 108-297
108th Congress
An Act
To amend title 49, United States Code, to make certain conforming
changes to provisions governing the registration of aircraft and the
recordation of instruments in order to implement the Convention on
International Interests in Mobile Equipment and the Protocol to the
Convention on International Interests in Mobile Equipment on Matters
Specific to Aircraft Equipment, known as the ``Cape Town
Treaty''. <<NOTE: Aug. 9, 2004 - [H.R. 4226]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Cape Town Treaty
Implementation Act of 2004. 49 USC 40101 note. 49 USC 44101 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as ``Cape Town Treaty Implementation Act of
2004''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The Cape Town Treaty (as defined in section 44113 of
title 49, United States Code) extends modern commercial laws for
the sale, finance, and lease of aircraft and aircraft engines to
the international arena in a manner consistent with United
States law and practice.
(2) The Cape Town Treaty provides for internationally
established and recognized financing and leasing rights that
will provide greater security and commercial predictability in
connection with the financing and leasing of highly mobile
assets, such as aircraft and aircraft engines.
(3) The legal and financing framework of the Cape Town
Treaty will provide substantial economic benefits to the
aviation and aerospace sectors, including the promotion of
exports, and will facilitate the acquisition of newer, safer
aircraft around the world.
(4) Only technical changes to United States law and
regulations are required since the asset-based financing and
leasing concepts embodied in the Cape Town Treaty are already
reflected in the United States in the Uniform Commercial Code.
(5) The new electronic registry system established under the
Cape Town Treaty will work in tandem with current aircraft
document recordation systems of the Federal Aviation
Administration, which have served United States industry well.
(6) The United States Government was a leader in the
development of the Cape Town Treaty.
(b) Purpose.--Accordingly, the purpose of this Act is to provide for
the implementation of the Cape Town Treaty in the United States by
making certain technical amendments to the provisions of chapter 441 of
title 49, United States Code, directing the Federal
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Aviation Administration to complete the necessary rulemaking processes
as expeditiously as possible, and clarifying the applicability of the
Treaty during the rulemaking process.
SEC. 3. RECORDATION OF SECURITY INSTRUMENTS.
(a) Establishment of System.--Section 44107(a) of title 49, United
States Code, is amended--
(1) in paragraph (2)(A) by striking ``750'' and inserting
``550''; and
(2) in paragraph (3) by striking ``clause (1) or (2) of this
subsection'' and inserting ``paragraph (1) or (2)''.
(b) International Registry.--Section 44107 of such title is amended
by adding at the end the following:
``(e) International Registry.--
``(1) Designation of united states entry point.--As
permitted under the Cape Town Treaty, the Federal Aviation
Administration Civil Aviation Registry is designated as the
United States Entry Point to the International Registry relating
to--
``(A) civil aircraft of the United States;
``(B) an aircraft for which a United States
identification number has been assigned but only with
regard to a notice filed under paragraph (2); and
``(C) aircraft engines.
``(2) System for filing notice of prospective interests.--
``(A) Establishment.--The Administrator shall
establish a system for filing notices of prospective
assignments and prospective international interests in,
and prospective sales of, aircraft or aircraft engines
described in paragraph (1) under the Cape Town Treaty.
``(B) Maintenance of validity.--A filing of a notice
of prospective assignment, interest, or sale under this
paragraph and the registration with the International
Registry relating to such assignment, interest, or sale
shall not be valid after the 60th day following the date
of the filing unless documents eligible for recording
under subsection (a) relating to such notice are filed
for recordation on or before such 60th day.
``(3) Authorization for registration of aircraft.--A
registration with the International Registry relating to an
aircraft described in paragraph (1) (other than subparagraph
(C)) is valid only if (A) the person seeking the registration
first files documents eligible for recording under subsection
(a) and relating to the registration with the United States
Entry Point, and (B) the United States Entry Point authorizes
the registration.''.
SEC. 4. <<NOTE: 49 USC 44101 note.>> REGULATIONS.
(a) In General.--The Administrator of the Federal Aviation
Administration shall issue regulations necessary to carry out this Act,
including any amendments made by this Act.
(b) Contents of Regulations.--Regulations to be issued under this
Act shall specify, at a minimum, the requirements for--
(1) the registration of aircraft previously registered in a
country in which the Cape Town Treaty is in effect; and
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(2) the cancellation of registration of a civil aircraft of
the United States based on a request made in accordance with the
Cape Town Treaty.
(c) Expedited Rulemaking Process.--
(1) <<NOTE: Publication.>> Final rule.--The Administrator
shall issue regulations under this section by publishing a final
rule by December 31, 2004.
(2) Effective date.--The final rule shall not be effective
before the date the Cape Town Treaty enters into force with
respect to the United States.
(3) Economic analysis.--The Administrator shall not be
required to prepare an economic analysis of the cost and
benefits of the final rule.
(d) Applicability of Treaty.--Notwithstanding parts 47.37(a)(3)(ii)
and 47.47(a)(2) of title 14, of the Code of Federal Regulations,
Articles IX(5) and XIII of the Cape Town Treaty shall apply to the
matters described in subsection (b) until the earlier of the effective
date of the final rule under this section or December 31, 2004.
SEC. 5. LIMITATION ON VALIDITY OF CONVEYANCES, LEASES, AND SECURITY
INSTRUMENTS.
Section 44108(c)(2) of title 49, United States Code, is amended by
striking the period at the end and inserting ``or the Cape Town Treaty,
as applicable.''.
SEC. 6. DEFINITIONS.
(a) In General.--Chapter 441 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 44113. Definitions
``In this chapter, the following definitions apply:
``(1) Cape town treaty.--The term `Cape Town Treaty' means
the Convention on International Interests in Mobile Equipment,
as modified by the Protocol to the Convention on International
Interests in Mobile Equipment on Matters Specific to Aircraft
Equipment, signed at Rome on May 9, 2003.
``(2) United states entry point.--The term `United States
Entry Point' means the Federal Aviation Administration Civil
Aviation Registry.
``(3) International registry.--The term `International
Registry' means the registry established under the Cape Town
Treaty.''.
(b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:
``44113. Definitions.''.
SEC. 7. EFFECTIVE DATE AND PRESERVATION OF PRIOR <<NOTE: 49 USC 44101
note.>> RIGHTS.
This Act, including any amendments made by this Act, shall take
effect on the date the Cape Town Treaty (as defined in section 44113 of
title 49, United States Code) enters into force with respect to the
United States and shall not apply to any registration or recordation
that was made before such effective date under chapter
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441 of such title or any legal rights relating to such registration or
recordation.
Approved August 9, 2004.
LEGISLATIVE HISTORY--H.R. 4226:
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HOUSE REPORTS: No. 108-526 (Comm. on Transportation and Infrastructure).
CONGRESSIONAL RECORD,
Vol. 150 (2004):
June 22, considered and passed House.
July 21, considered and passed Senate.
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