Mortgaging of Aircraft

When an aircraft is financed and there is an attached mortgage, the mortgage can be registered on the Cayman Islands Register of Aircraft Mortgages under The Civil Aviation Authority Law (2005 Revision) – The Mortgaging of Aircraft Regulations, 2015 (MAR).

Registration Information

To register a mortgage under section 4 of the Regulations on an aircraft registered in the Cayman Islands, a Mortgage Registration Application should be completed and signed by the mortgagee/applicant. Details to be completed include – date of mortgage, description of the aircraft, sum secured by the mortgage and any further advances after the initial amount, name and address of the mortgagor and the register number of the priority notice if any. The mortgage application should be accompanied by the executed Mortgage Deed and if necessary, to reference the sum secured by the mortgage, the related Loan Agreement. These documents should be emailed to registrationenquiries@caacayman.com and the appropriate fee [sec 9 (2) (b) of Air Navigation (Fees)Regulations, 2010] to be paid to effect the mortgage registration. The original of the application and a certified true copy of the mortgage can be sent to the CAACI after the mortgage has been registered. This application need not be notarized or signed by the mortgagor. An aircraft mortgage cannot be registered in the Cayman Islands until the aircraft is registered.
If an intended mortgage has not yet been finalised or the aircraft is not yet registered, a priority notice can be filed with the CAACI to secure the order of priority of the mortgage should there be another mortgagee intending to register a mortgage. A priority notice is effective for 14 days and can be renewed indefinitely but there is a charge of CI$250 at each renewal [sec 9 (2)(a) of Air Nav (Fees) Regulations, 2010]. To request a registration of a priority notice a Priority Notice Application should be completed and sent by email to registrationenquiries@caacayman.com. It is not necessary to include any final mortgage documents with the priority notice application but a draft of the mortgage deed should be sent to crosscheck the particulars.
Should there be a change in details of the registered mortgage such as the name of the mortgagee (occurs frequently with the merging of banks and financing entities), simple change in name of mortgagor, or the address of either party to the mortgage, a Change in Particulars Form should be submitted and signed by the mortgagor and the mortgagee. The application should be supported by the legal documents evidencing the change – amended mortgage deed, name change notification etc. The completed form and documents is to be sent to registrationenquiries@caacayman.com and the filing fee of CI$250 to be sent to the CAACI.