Protecting the Aircraft Lessee's Quiet Possession Right under the Cape Town Convention

June 2009
Bloomberg Banking & Finance Reporter
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The article discusses the nature of the quiet possession right under the Cape Town Convention and the ways in which that right could potentially be lost, with some suggestions for how to protect that right.

The Cape Town Convention on International Interests in Mobile Equipment, which came into effect in the United States three years ago, has changed many of the ways in which aircraft financing transactions are documented.  Some of the most important changes, from the point of view of an aircraft lessee, revolve around the manner of documenting and protecting the lessee’s quiet enjoyment rights to the leased equipment in light of the quiet possession right created under the Cape Town Convention.