Jul 2023
Conyers Partner Rachael Pape and Consultant Audrey Robertson wrote the BVI chapter of the International Comparative Legal Guide — Aviation Finance & Leasing.
The guide, which is firmly established as one of the most comprehensive and highly regarded quality legal guides available for this specialist subject, provides in-depth coverage of aviation and finance leasing laws for the jurisdiction, presented in a question-and-answer format.
The chapter begins with more general and contract-focussed questions around aircraft purchases, exploring various financing and leasing structures available, as well as notable qualities of each option, and pre-contractual agreements. Taxation implications are also covered, especially any taxes that stakeholders need to be aware of during aircraft leases, sales or financing, as well as the impact of initiatives like Base Erosion and Profit Shifting on aviation finance and leasing structures.
The section on aircraft registration and deregistration offers insights into the effects of registration in the jurisdiction and outlines the steps lessors can take to deregister an aircraft at the end of a lease. Security questions are then answered, particularly focussing on the possibility of creating mortgages over aircraft or engines. The repossession process in the jurisdiction is also explored, as well as the ratification of important conventions, such as the Chicago Convention of 1944 on International Civil Aviation, which is crucial information for understanding the legal landscape and ensuring compliance in cross-border transactions.
The chapter concludes with an examination of liability for damage and environmental issues. This section identifies the liability frameworks for the jurisdiction, determining who can be held strictly liable for any harm caused by an aircraft. Furthermore, it delves into insolvency issues and matters related to detention and confiscation, providing comprehensive insights into potential risks and challenges.