Notice to banks and financiers dealing with aviation finance

 

From:  Merriam Machika, HOO: Aircraft Registry

South African Civil Aviation Authority

Tel:     +27 11 545-1075

Fax:    +27 11 545-1070

email: machikam@caa.co.za

 

 

TO:       BANKS AND FINANCIERS DEALING WITH AVIATION FINANCE  

Enquiries: Aircraft Registry

Telephone: 011-545-1075, 1271,1068,1069,1073

Fax: 011-545-1070

Reference: CA22/3/General

 

 

Dear Bank Manager / Financier / Aircraft Dealer or Agent

 

 

CONVENTION ON THE INTERNATIONAL RECOGNITION OF RIGHTS IN AIRCRAFT ACT, 1993 (ACT NO 59 OF 1993) and MORTGAGING OF AIRCRAFT REGULATIONS, 1997 (MAR’s); AVIATION ACT NO 74 OF 1962 and CIVIL AVIATION REGULATIONS, 1997 as amended (CAR’s)

 

 

1.     The above-mentioned act and regulations which were implemented on 1 January 1998, have reference.  Your attention is also drawn to the contents of Government Gazette 6058 dated 12 December 1997 (Vol.390, No. 18534); Government Gazette 6064 dated 24 December 1997 (Vol.390, No. 18562) and Government Gazette 6398 dated 31 December 1998 (Vol.402, No. 19644), Government Gazette R436/24603 dated 28 March 2003 and Government Gazette No.26211 (Vol.465) dated 31 March 2004 in which the aforesaid Regulations, as well as the relevant fees were published.

 

             Kindly note that  from 1 April 2005 he applicable fees set out under excluded 14% VAT in terms of section 24(1) of VAT Act:

 

             Recording of a mortgage in the register of aircraft mortgages:                                            R610.00

             Endorsement of mortgage details on Certificate of Registration:                                         R340.00

             New Certificate of Registration if change of owner is required:                                            R470.00

             Amendment of Certificate of Registration if change of address 

             or name of company or CC is required:                                                                  R340.00

 

2.     Please note that the prescribed forms published in the said Gazette of 24 December 1998, have been amended, and the new Form MAR2.1 is enclosed herewith for your further use. Kindly note that all the enclosed forms are given to you as masters. Please make your own photocopies for the transactions, and do not fax them to your branches, as the quality thereof become illegible and will not be accepted for registration.  Rather ask them to obtain a new set directly from this office.

 

3.     The following procedure for preparation of the mortgage is suggested:

 

3.1   Firstly determine the ownership status of the aircraft on the SA Civil Aircraft Register. If a change of ownership is necessary, the new owner of the aircraft must complete pages 2, 3 and 9 of Form CAR47A enclosed herewith. The supporting documents applicable to this particular application must be found on page 4 and the present registered owner (seller) of the aircraft must complete page 8 of the same form.

 

3.2   If the aircraft is already registered in the name of the mortgagor (the bank's client), but the postal address on the Certificate of Registration is outdated, the registered owner must complete page 2, paragraphs 3.1, 3.3 and 3.7 of page 5 and page 9 of Form CAR47A.

 

3.3   The present registered owner of the aircraft must, IN ALL CASES, apply for endorsement of the Certificate of Registration with the mortgage details, by completing page 2, paragraphs 3.1 and 3.7 of page 5, and page 9. Kindly also take notice of paragraph 3.7 on Form MAR 2.1, in terms of which it is compulsory to have the aircraft registered in the name of the mortgagor BEFORE application is made for registration of the mortgage.  It is suggested that the mortgagee (bank or financier) requests a copy of the Certificate of Registration from the mortgagor first.  In terms of Regulation CAR47.00.8 the mortgagor must simultaneously apply for amendment of the Certificate of Registration on pages 1, 5 and 9 of Form CAR47A for endorsement of the certificate indicating the mortgage details.  Please note that paragraph 3.7 of Forms MAR2.1 or MAR2.2 is not applicable when the mortgagor has its principal place of business outside the Republic of South Africa, and for instance, leases the aircraft to a South African operator.

 

3.4   Only after completion of the aforegoing steps, should you continue with completion of Form MAR2.1.

 

3.5   You are requested to study the Notes on page 1 of each form thoroughly to comply with its requirements before delivery of your documents, especially the procedure for certification of documents in Note (ii), as well as marking of the annexures in Note (iii). Please also note that the authorisation in Note (iv) requires written authorisation by means of a Resolution by the Mortgagor. An example of a Resolution which you may use, is attached hereto. However, please note that the resolution on Page 9 of Form CAR47A, and the "Example Resolution" regarding the mortgage are two different resolutions, and BOTH MUST ALWAYS BE SUBMITTED where the aircraft owner and/or mortgagor are not one private individual.

 

3.6   Please keep in mind that the action of the Commissioner of Oaths who takes down the oath from the Mortgagor on page 4, and the action of the certification of all annexures as well as the two certified copies of the mortgage, are two completely different actions. The oath may be taken down by a Commissioner of Oaths at the bank or financier, but the certification must always be done by a non-interested party. Also note that, in terms of the MAR's, the full amount of the mortgage MUST be completed in par. 4 on page 3 of MAR2.1, and these forms MAY be completed in BLACK INK ONLY.

 

4.     Kindly ALWAYS arrange an appointment telephonically for lodging or collection of documents.

 

5.     Please do not hesitate to contact any staff member of Aircraft Registry with any further enquiries you may have in this regard.

 

 

Yours faithfully

 

 

for: COMMISSIONER FOR CIVIL AVIATION