Part (49) of the Implementing Regulations for Civil Aviation Safety (Rights on Aircraft)

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Defined Terms

Terms used without definition in this regulation have the meanings given in the Treaty.

Applicant: an entity or person that has applied or is applying for the registration of an Aircraft in the Registry.

Certified Designee: an entity or person named in a Designation as the certified designee under an IDERA.

Designation: the appointment of a Certified Designee by an Authorised Party in respect of an IDERA.

De-Registration: removal of the registration of an Aircraft from the Aircraft Register and promptly providing a certificate evidencing De-Registration to the Authorised Party or Certified Designee, as applicable.

Export:  export and physical transfer of an Aircraft from the territory of the Kingdom of Saudi Arabia.

Export-Related Safety Laws: applicable laws and regulations of the Kingdom of Saudi Arabia  which permit the operation in its airspace of an aircraft under a ferry or other special flight permit issued by the applicable aviation authorities (including under Part 21) but excluding any requirement (i) for the issuance of an export certificate of airworthiness, or (ii) for any documents in the possession of, or any action by, an operator of an aircraft.

IDERA: an irrevocable deregistration and export request authorization, the form of which is appended to the Protocol.

Officer: of an entity is (i) a member of its board of directors, (ii) its chief executive, operating, financial or legal officer, (iii) a vice president, (iv) its secretary or an assistant secretary, (v) its treasurer or assistant treasurer, (vi) a member or general partner, (vii) a trustee or (v) an attorney under a power of attorney, or (vi) any other person or entity whose signing authority is acceptable to the President.

President:  the President of the General Authority of Civil Aviation in the Kingdom of Saudi Arabia.

Related Engine: an engine to which the Treaty applies and the Authorised Party (or Certified Designee, if applicable) certifies to the President is an engine to which the underlying documentation signed by the Applicant, and giving rise to the IDERA, applies.

Treaty: the Convention on International Interests in Mobile Equipment, 2001 (the Convention), as modified by the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, 2001 (the Protocol), and including the declarations lodged by the Kingdom of Saudi Arabia in connection with its accession to the Convention and Protocol.​

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§ 49.1 Background

(a)    Under the Civil Aviation Law, the General Authority of Civil Aviation (GACA) is the sole authority in charge of all civil aviation affairs in the Kingdom.

 

(b)    Article 51 of the Civil Aviation Law requires that GACA establish the Saudi National Aircraft Register and publish regulations which specify data to be entered into said register as well as necessary aircraft registration requirements.

 

(c)    Chapter Four, Section Two of the Civil Aviation Law sets out the categories of rights which may be established on civil aircraft by submission of documentation to or registration with the Saudi National Aircraft Register maintained by the GACA.

 

(d)    The Kingdom of Saudi Arabia is a Contracting State to the Treaty and made certain declarations under the Protocol including the declaration under Article XXX (1) of the Protocol providing for the recording and enforcement of IDERAs.

 

(e)    The Treaty became effective by Royal Decree NO (M/32) dated 01/06/1425 H and the declarations made by the Kingdom of Saudi Arabia became effective on [    ] issued by the Royal Decree NO () dated [    ] and the declarations lodged with UNIDROIT on [    ]. Pursuant to the Civil Aviation Law issued by the Royal Decree NO M/44 dated on 18-07-1426 H GACA is the Authority empowered to make regulations within its area of competency with respect to implementing the Treaty.

(f)     This Part sets out the implementing regulations with respect to:

 

1. recordation of rights under the Civil Aviation Law which are applicable to Saudi aircraft; and
   
    
2. recordation, registration and de-registration of IDERA and interests, in accordance with the Treaty and the Aircraft Protocol.​
   

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​§ 49.2 Applicability.

​(a) ​This Part prescribes the recording requirements recording of certain rights in

1. any aircraft and helicopter registered under GACAR Part 47;
   
    
2. any specifically identified engine or propeller serving on an applicable aircraft; and
   
    
3. international interests in relation to aircraft objects under the Cape Town Convention and Aircraft Protocol.
   
    

(b) Rights that can be recorded under Chapter Four, Section Two of the Civil Aviation Law are set out in Subpart [B and interests registrable under the Cape Town Convention and for the recordation and exercise of IDERA are set out in Subparts [C and D].
 

(c) In this Part 49, for the purposes of Subpart [C] and Subpart [D], capitalized terms have the meaning ascribed to them in the Annex.

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§ 49.10 Rights that can be recorded.

1. The rights capable of recording under the Civil Aviation Law are:
   
    

1. Right to ownership of an aircraft;
2. Right of an aircraft acquirer to own said aircraft by means of purchase (any instrument creating such right is a “conditional sale agreement");
3. Right to use an aircraft pursuant to a lease contract;
4. Right to a registered lien and any similar right established by an agreement on an aircraft to satisfy a debt (including without limitation, any mortgage, charge, pledge similar or similar security interest with respect to the aircraft which satisfies the requirements of Article 2 of the Law of Commercial Pledge (Royal Decree No. M/86 of April 24, 2018) (an any instrument creating such right is a “security agreement"); and
5. Any privileged debt for the purposes of Article (61) of the Civil Aviation Law.​
   

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§ 49.11 Application for recording of Civil Aviation Law Rights.

(a) ​For a rights to be eligible for recording, a right must be submitted to [GACA] in the specified form accompanied by supporting document apostilled and /or legalized (evidence, as specified in this regulation, or by any other means and form acceptable to the [President] as may be advised by the [President] from time to time.

(b) Any person submitting an application to record a right or a document submitted as supporting evidence under this part must comply with the requirements stipulated in [GACAR Part 47.15].​

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§ 49.13 Fees for recording.

(a)  The fees charged for recording of interests or rights under this Part are:

1. Ownership right;
2. Right of an aircraft acquirer to own an aircraft;
3. Right to use an aircraft pursuant to a lease contract;
4. Right to registered lien;
5. Privileged debt; and
6. Notification of engines and propellers serving on an aircraft under Part 49.35.
   
    

(b)  There is no fee for recording an ownership right or lease contract that accompanies an application for aircraft registration under GACAR Part 47.

 

(c)  Each registration filing must be accompanied by the proper fee, that is to be paid via the appropriate portal.  ​

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§ 49.15 Rights recorded.

(a) Each Right recorded under this Subpart B must be evidenced by a supporting instrument.

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§ 49.17 Effective date of filing.

(a)   Any right filed for recordation will be effective upon the date and at the time of GACA'S notification of the completion of such recordation request to be in the Saudi National Aircraft Registry.

 

(b)   With respect to any right recorded under Subpart B, any interest which was created prior to [the effective date of this regulation] (“Pre-Existing Right") shall be effective as of [12 am] of [the effective date of this regulation], provided that such Pre-Existing Right is filed with the GACA within [6] months of [the effective date of this regulation].

(c)   If it is necessary to determine priority between two competing Pre-Existing Rights (other than privileged debts) in respect of an aircraft, then the earlier created Pre-Existing Right shall prevail over any subsequently created Pre-Existing Right.

(d)   Any Pre-Existing Rights filings with respect to a privileged debt will have priority over all other interests established on aircraft under the Civil Aviation Law.

(e)   The priority between all privileged debts shall be inversely related to the chronological order of incidents giving rise thereto provided that:

(i) if the privileged debt is not a Pre-Existing Right such privileged debts are submitted within three months following completion of work which gave rise thereto; and

(ii) if the privileged debt is a Pre-Existing Right, such Pre-Existing Right is registered within the timeframe set out in paragraph (b). ​

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§ 49.21 Instruments to be submitted for registration.

(a) A person submitting a right for recording may submit a true copy of the instrument creating such right in lieu of the original, except if an original is specifically required by GACA. The true copy must be:

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1. attached to a certificate, or other acceptable attestation, of [the person submitting such conveyance / A KSA lawyer] stating that the copy has been compared with the original and that it is a true copy;
   
    
2. if the instrument has been executed outside of the Kingdom of Saudi Arabia, it must be notarized and apostilled and /or legalized (as applicable) for use in the Kingdom of Saudi Arabia. ​
   

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§ 49.31 Eligibility for recording: all rights.

A right is eligible for recording under this subpart only if, in addition to the requirements set out in Subpart B above, the following requirements are met:

1. The instrument evidencing such right describes the aircraft by make and model, manufacturer's serial number and Saudi aircraft registration number, or other details that make identification possible;
2. The instrument is (i) a true copy of an original document, certified in accordance with GACAR Part 49.21, (ii) an original document or (iii) a duplicate original document;
3. It affects aircraft registered under GACAR Part 47;
4. It is accompanied by the recording fee required by GACAR Part 49.13; and
5. It is submitted together with a duly completed and signed application in the form prescribed published by the General Authority of Civil Aviation.​
   

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§ 49.31 Eligibility for recording: specific requirements for security agreements, conditional contracts and lease contracts.

The following rules apply to instruments executed for security purposes and assignments thereof:

1. A security agreement must be signed by the debtor.
2. An assignment of an interest in a security agreement must be signed by the assignor, and unless it is accompanied by the underlying security agreement, must describe the underlying security agreement in sufficient detail to identify it, including its date, the names of the parties, and date the underlying security agreement was recorded, and the registration number issued by GACA for such recorded interest.
3. Immediately after a debt secured by a recorded security agreement has been satisfied or any aircraft is released from the security, the holder must execute a release and send it to GACA for recording in accordance with GACAR Part 49.37.
4. A contract of conditional sale (evidencing the right of an aircraft acquirer to own an aircraft by means of purchase) must be signed by all parties to the contract.
5. A lease contract must be signed by the lessor and the lessee.​
   

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§ 49.33 Eligibility for recording: ownership rights, conditional sale and lease contracts.

If the seller of an aircraft is not shown on the records of the Saudi National Aircraft Register as the owner of the aircraft, any instrument evidencing a transfer of ownership (including any conditional sale) submitted for recording under this subpart must be accompanied by bills of sale or similar documents showing consecutive transfers from the manufacturer of the aircraft or last registered owner (as applicable), through each intervening owner, to the seller.​

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§ 49.35 Eligibility for recording: engines and propeller serving on a KSA aircraft

A right holder may, but is not required to submit an application to record information relating to engines and propellers serving on an aircraft, if the following requirements are met:

1. It affects and describes an aircraft engine or propeller serving on an aircraft, specifically identified by make, model, horsepower and manufacturer's serial number;
2. It describes the airframe of the aircraft it is serving by make and model, manufacturer's serial number and Saudi aircraft registration number, or other details that make identification possible and the aircraft registration number filed with the Saudi National Aircraft Register;
3. It is accompanied by the recording fee required by GACAR Part 49.13; and
4. It is submitted together with a duly completed and signed application in the form prescribed and published by the General Authority of Civil Aviation. ​
   

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§ 49.37 Releases and discharges.

(a) A notification of any release, cancellation, discharge, or satisfaction of an encumbrance creating a security agreement must be submitted in the form prescribed and published by the General Authority of Civil Aviation, and must contain a description of the security agreement, the recording information furnished to the interest holder at the time of recording and the collateral being released. 

(b) The effective date and time of such release is the date and time specified in GACAR Part 49.17.​​

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§ 49.39 Eligibility for recording.

(a) A privileged debt is eligible for recording under this subpart only if the following requirements are met:

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1. It describes the aircraft by make and model, manufacturer's serial number and Saudi aircraft registration number, or other details that make identification possible;
2. It accurately describes the type of privileged debt arising under Article 61 of the Civil Aviation Law;
3. The request for filing of a privileged debt is submitted within three months following completion of the work which gave rise thereto;
4. It affects aircraft registered under GACAR Part 47;
5. It is accompanied by the recording fee required by GACAR Part 49.13; and
6. It is submitted together with a duly completed and signed application in the form prescribed published by the General Authority of Civil Aviation.​
   

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§ 4​9.40 Purpose and effect.

(a) The “aircraft register" in the Kingdom of Saudi Arabia for the purposes of the Treaty is the Saudi National Aircraft Register and the “registry authority" is GACA.

(b) This Subpart C sets out certain rules and regulations to facilitate GACA's functions as the registry authority to implement Treaty within the Kingdom of Saudi Arabia within its area of competence as the regulator. ​

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§ 49.41 Recordation of international interests.

(a) GACA shall maintain within the National Aircraft Register a record of international interests (which in this context includes prospective international interests and assignments of international interests and associated rights) which have been provided by the holder of such interests and which have a connection to aircraft registered in the Kingdom of Saudi Arabia.

(b) A holder of such interests is encouraged to notify GACA of such interest within [30] days of making such a registration with the International Registry.(c) Any person who registers a non-consensual right or interest under Article 40 of the Cape Town Convention which have a connection to an aircraft registered in the Kingdom of Saudi Arabia [may / must] within [30] days of making such registration with the International Registry notify GACA of such registration together with a statement or explanation of the amount due or claimed and must, promptly after such amount is satisfied, notify GACA of the satisfaction of the same.

(d) The information recorded under this provision is for record keeping at GACA.

(e) Any creditor of an international interest in respect to an [“aircraft object"] to which the Treaty applies, or an assignee of such interest, encourage to notify GACA within [30] days of registration of such interest with the International Registry if:

 (1) in relation to any type of aircraft object, the debtor is situated in the Kingdom of Saudi Arabia at the time of the conclusion of the agreement crating or providing for such interest; or

(2) in relation to helicopters and the airframe pertaining to an aircraft, the helicopter or aircraft is registered with the Saudi National Aircraft Register or there is an agreement to register said airframe or helicopter with the Saudi National Aircraft Register.​

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§ 49.43 Notification of default.

(a) Any creditor who has declared a default shall notify GACA of the remedies under the Treaty it wishes to exercise and any assistance it may require of GACA including, without limitation:

(i) any exercise of remedies exercisable under the Treaty without leave of court;

(ii) any assistance required with regard to any public or private entities within GACA's regulatory competency (including air navigation service providers, (iii) any exercise of an IDERA.​

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§ 49.45 Voluntary notification of non-consensual rights and interests that do not require registration

A person is encouraged to notify GACA of a non-consensual interest under Article 39 of the Cape Town Convention together with a statement or explanation of the amount due or claimed and the category of non-consensual right or interest under which it arising.​

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§ 49.46 Notification of defaults to interested parties

(a) ​Upon GACA being notified of a default which has been declared under GACAR Part 49.43(a) in relation to an aircraft object, GACA shall inform the holders of non-consensual rights and interests notified to GACA of a such default.

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§ 49.50 Purpose and effect.

(a)The purpose of this Subpart D is to provide procedures for:

1. recording and cancelling an IDERA, and
2. De-Registering Aircraft under an IDERA .
3. This Subpart D applies to Aircraft registered in the Kingdom of Saudi Arabia.​
   

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§ 49.51 IDERA Recordation.

(a)   The [President] will accept and record an IDERA if it:

(1) is submitted in writing to the [President]; 

(2) identifies an Aircraft registered or to be registered in the National Aircraft Register;

(3) is signed by an Applicant [in line with the requirements in Part 47.57 below]; and

(4) if it complies substantially in the form annexed to the Aircraft Protocol.

(b)   The [President] will record an IDERA within [five working days] of receipt of a submission which complies with all the requirements in paragraph (a), and will promptly confirm to the Applicant, the Authorised Party and any Certified Designee (if applicable) that recordation is completed.

(c)   Two copies of an IDERA shall be submitted to the President for recordation. Upon receipt, the President will acknowledge receipt and confirm that IDERA has been recorded by executing one such copy and returning it to the party submitting the application, indicating that it was recorded.

(d)   No IDERA may be recorded for an Aircraft if a prior IDERA has been recorded by the President for that Aircraft which has not been revoked in accordance with Part [49.54].

(e)   Without limiting GACA's authority to De-Register aircraft under applicable law, once an IDERA has been recorded in respect of an Aircraft, the Applicant may not request that the Aircraft be De-Registered, unless the IDERA has been revoked in accordance with Part [49.54].​

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§ 49.53. Certified Designee

(a)   The President will accept and record a Designation, whereby an Authorised Party appoints a Certified Designee, if:

(1) it is submitted in writing to the President;

(2) it identifies the Certified Designee appointed by the Authorised Party and the IDERA to which it applies;

(3) no other Designation is recorded for the relevant IDERA; and

(4) it is signed by the Authorised Party in line with the requirements in Part 47.57 below.

(b)   The President will record a Designation within five working days of receipt of a submission which complies with all the requirements in paragraph (a), and will promptly confirm to the Authorised Party and the Certified Designee that recordation is complete.

(c)   If two copies of a Designation are submitted to the President, the president acknowledge receipt and confirm that the recordation is complete by signing and returning one copy, indicating that it was recorded.​

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§ 49.54. Revocation of an IDERA.

(a)   An IDERA will be revoked and be of no further effect if a revocation:

(1)   is submitted in writing by the Authorized Party to the President; and

(2)   identifies the IDERA which it applies.

(c)   The President will record a revocation within five working days of receipt of a submission which complies with all the requirements in paragraph (a) and / or (if applicable) (b), and will promptly confirm to the Applicant, the Authorised Party that recordation of the revocation is completed.

(d)   An Applicant has no power to revoke or request for the revocation of a registered IDERA. ​

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§ 49.55. IDERA Remedies.

If an IDERA is recorded, an Authorised Party, or, if a Designation is also recorded, its Certified Designee shall be the sole person authorised to deliver a request and exercise the remedies specified in this regulation and in Article IX(1) of the Protocol pursuant to such IDERA.​

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§ 49.56 Exercise of Remedies.

(a)   Subject to the applicable aviation safety laws and regulations, a request to exercise IDERA remedies will be accepted by the President if it:

(1)   is submitted in writing, identifying the applicable rights and remedies that are to be exercised, being to effect the De-Registration of the Aircraft and/or to facilitate the Export of the Aircraft with its related engines];

(2)  identifies an IDERA recorded in the National Aircraft Register;

(3) in line with Article IX(5) of the Protocol, the Authorized Party (or Certified Designee, if applicable) certifies that there are no registered interests in the Treaty's international registry ranking in priority to that of the Authorised Party, or, if there are, that they been discharged or the holders thereof have consented to the exercise of such IDERA remedies, and

(4) is signed by the Authorised Party (or Certified Designee, if applicable).

(b)   The President will honour each request submitted in accordance with this [Subpart D], to the extent so requested, by effecting the De-registration of the Aircraft, and taking all action within its power to effect or facilitate the Export of the Aircraft in an expeditious manner, and, in any event, within five working days of receipt of the request which complies with all the requirements in paragraph (a). The President will promptly provide a certificate to the Authorised Party (or Certified Designee, if applicable) evidencing De-Registration. No additional consent, approval, court or other order or decision, additional requirements, condition or any other action is required in order for the President to comply with any request made under this [Subpart C]. The exercise of any Export remedy is subject to applicable Export-Related Safety Laws.

(c)   GACA is entitled to assume (without having to make any enquiry) that:

(1)   any remedy exercised has been exercised in a commercially reasonable manner;

(2)   any certification made is true and correct;

(3)   the circumstances specified in Chapter III of the Convention (entitling the creditor to exercise its remedies) have occurred and that the creditor is so entitled to exercise its remedies.

(d)   Notwithstanding the foregoing, GACA shall be entitled to withhold facilitating the export of the Aircraft with its related engines if any holders of non-consensual rights and interests which may have priority under Article 40 of the Protocol notify GACA that their interests have not been satisfied by the operator or creditor (or the creditor has not consented to the de-registration or export). ​

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§ 49.57 Engines.

A request with respect to an Aircraft will be honoured under Part 47.56 without regard to the identity of the engines and other equipment then installed on that Aircraft. ​

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§ 49.58 Further Actions.

(a) The Authorised Party (or Certified Designee, if applicable) will, to the extent within its reasonable control, but not as a condition to the De-registration of the Aircraft, remove or cover the Registry's nationality marks on the Aircraft, return to the President the original certificate of registration and certificate of airworthiness for the Aircraft, and change the Aircraft's transponder code so that it no longer indicates that such Aircraft is registered in the Kingdom of Saudi Arabia.

(b) A holder of an IDERA shall notify all creditors when the holder does apply for deregistration before GACA.

​(c) In case that an aircraft is subject to registered international intertest as well as its engine, the international interest agreement or its annexes shall contain a certain arrangement between the aircraft interest and the engine intertest. ​

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§ 49.57. Formalities and Document Execution

(a)        The [President] may issue any necessary directions, forms, circulars and notices from time to time as may be required to implement these regulations, including without limitation the form of IDERA, Designation, request for exercise of De-Registration and/or Export remedies and the revocation of any IDERA or Designation.

(b)        Any document delivered hereunder by an Applicant, Authorised Party or Certified Designee, as the case may be, may, if any of the foregoing is not a natural person, be executed by an Officer of any of the foregoing, or under any other document legally authorizing execution on the foregoing's behalf.

(c)        In the case of any document which indicates that it was signed by (or on behalf of) an entity that is not a KSA citizen, it must submit:

(1) a copy of the certificate of incorporation, formation or other organizational documents acceptable to [the President];

 (2) a copy of a legalized and authenticated power of attorney [in favour of a KSA citizen] or other evidence of authorisation acceptable to [the President] authorizing such signatory to execute documents on behalf of the relevant party; and

(3) the above documents must be authenticated in accordance with [the Authentication law] or the [commerce chamber].  ​

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§ 49.58. Inconsistency between rights registered under Civil Aviation Law and Cape Town Convention

Pursuant to [Royal Decree [   ]], to the extent of any inconsistency between any interest registered under Subpart B and any international interest constituted under the Treaty, the provisions of the Treaty shall prevail to the extent of any inconsistency. ​

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§ 49.59. Effective Date of Subparts

Subparts A and B of these regulations shall take effect upon publication of this Part. Subparts [C and D] are not effective now and will take effect 6 months from the date of deposit of the required Cape Town Convention Declarations by the Kingdom of Saudi Arabia. Upon such deposit of Declarations, GACA will publish the effective date. ​

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